New York City has once again been named the second worst “Judicial Hellhole” in the United States, according to the American Tort Reform Foundation’s annual report. The National Federation of Independent Business (NFIB) released a statement in response to this designation, emphasizing concerns for small business owners operating in the city.
“Small business owners are not surprised to again see New York City near the very top of this grim annual list. There is no doubt that New Yorkers need meaningful reform to stop lawsuit abuse and help protect small businesses from predatory practices and fraudulent litigation,” said Assistant State Director Molly Dillman. “Small employers are already facing significant economic challenges and regulatory costs, and this report highlights the judicial burden New York employers have weighed on them by pro-trial litigators looking out for their own personal interests.”
The report highlights that New York residents pay an average annual tort-related cost of over $2,500 per person. It also estimates that more than 427,000 jobs are lost each year as a result of high tort costs. The Judicial Hellholes report points out that liability laws and broad court decisions contribute to affordability problems in New York City, citing findings from a recent study by the Partnership for New York City.
The NFIB has represented small and independent businesses across the country for more than 80 years. More information about their advocacy work can be found at nfib.com.
