MAYOR MICHAEL R. BLOOMBERG AND PUBLIC ADVOCATE BETSY GOTBAUM URGE CITY COUNCIL TO PASS TORT REFORM LEGISLATION 

Mayor Michael R. Bloomberg and Public Advocate Betsy Gotbaum today urged the City Council to pass two tort reform bills and announced that they would work together to implement comprehensive tort reform for New York City.  The two bills before the City Council that would save the City $40 million a year if implemented are: Int. No. 193 of 2002, adjoining landowner liability, and Int. No. 192, reforming the prior notice law that trial lawyers currently comply with using the “Big Apple Map.”  The two bills were the subject of a hearing before the City Council’s Transportation Committee this past November.

“I am very pleased that the Public Advocate has joined me in working to implement tort reform for our City,” said Mayor Bloomberg.  “The Public Advocate’s support for these two bills is pivotal to building the coalition necessary for their passage.  The City pays out $500 million a year in torts, that’s larger than the budgets of most City agencies. In fact, that is bigger than the budget of most municipalities in New York State.   In 1978, the City paid out $21 million in tort payouts.  In 2001, the number had skyrocketed to more than half a billion dollars, a 2,600% increase.  The legislation before the City Council would save the City $40 million a year; the equivalent of 800 new teachers or police officers. I urge the City Council to end the Tort Tax now.”

“I support the Mayor on his sidewalk legislation,” said Public Advocate Gotbaum.  “This plan will make sidewalks safer for us all, and save the city millions of dollars annually. “It makes sense to shift legal liability to the commercial property owners responsible for maintaining the sidewalks.  I am confident that by working with the Mayor and the City Council, we can be successful in passing this sound legislation that balances the interests of the City with the needs of those injured on dangerous sidewalks.” 

The Mayor’s reforms includes the following bills before the City Council:

• Adjoining Landowner Liability or “Sidewalk” Bill -- This bill will hold building owners liable in tort if they fail to comply with their existing duty to repair and maintain the sidewalks in front of their buildings and to shovel snow and remove ice.  The law, as it stands now, imposes tort liability only on the City if a landowner fails to comply with his or her duty to maintain the sidewalk or make repairs, giving landowners no incentive to keep their sidewalks safe.  If passed, the bill would rectify this situation and save the City up to $ 40 million a year.  It would exempt one-, two- and three-family homes. The bill would help avoid cases like Johnson v. the City of New York, in which a woman who tripped on a virtually flawless sidewalk won a $2 million verdict (reduced to $880,000 by the judge but resulting in a $1 million payout due to interest).
  
  
• Prior Notice or “Big Apple Map” Amendment -- This amendment would ensure that New York City receives fair prior written notice for sidewalk and roadway defects.  Current law requires that the City have 15 days’ prior written notice before liability can be imposed on the City if an accident occurs.  However, a company created by trial lawyers, the Big Apple Pothole and Sidewalk Corporation, has created a way to manipulate the law.  It contracts with a map company, Sanborn, to produce “squiggles” on maps that are supposed to indicate defects.  Sanborn pays surveyors to walk the streets, many of whom mark at will.  Sanborn’s employees have acknowledged that Big Apple has no idea if they receive training or know what constitutes a defect.  They have testified that Big Apple does not inspect Sanborn’s work.  The maps offer no insight into whether a defect is a serious hazard or if it should be repaired promptly.  Rather, the sole purpose of Big Apple is to satisfy the legal technical requirement of prior written notice.  The City received about 5,200 maps with more than 700,000 “squiggles” last year.  Big Apple knows it is impossible for the City to inspect all these conditions.  Mayor Bloomberg’s proposed amendment to the prior written notice law would require an individual to file a detailed report, including the specific location, nature, size and severity of a defect.  False reporting would be a crime.  This amendment would significantly advance public safety by giving the City meaningful notice about hazards.  It would enable The City to make rational, fact-based decisions as to which defects are critical to fix and how to best allocate precious resources.

“These proposals provide a sensible way to address the serious issues posed by the huge growth of tort payouts, especially during the City’s fiscal crisis,” said Mayor Bloomberg.  “Tort reform has been discussed year after year.  It’s time for the City Council to cut through the politics and put into effect creative legislation that makes sense, saves the City scarce dollars and is fair to all involved.”