BETHESDA, Md. — The Auto Care Association (ACA) and Specialty Equipment Market Association (SEMA) have joined more than 230 other business and trade organizations in urging lawmakers to enact temporary and targeted liability relief legislation related to the COVID-19 pandemic.
The organizations, which include the American Trucking Associations, U.S. Chamber of Commerce, National Retail Federation, International Franchise Association, National Federation of Independent Business and National Small Business Association, are urging protection for businesses that might face lawsuits while operating during the pandemic.
"... our members and constituencies are concerned that, despite doing their best to follow applicable guidelines, they will be forced to defend against an onslaught of frivolous lawsuits. The prospect of such litigation and associated exorbitant legal costs are a deterrent to reopening," the groups said in a letter sent May 27.
"Further, this litigation could devastate those entities that are just beginning to reopen their doors or have kept them open throughout the crisis. Indeed, past surveys have shown that many small businesses are one lawsuit away from closing for good."
The groups also are asking members of Congress to protect health-care workers and facilities providing critical care and services; manufacturers, donors, distributors and users of personal-protective equipment and other supplies; and public companies "targeted by unfair and opportunistic" securities related to the coronavirus.
"The need for liability protections and relief is clear," the groups said in the letter.
"Several governors and state legislatures have already implemented COVID-19-related liability protections for key sectors in their states, but a uniform national response is necessary."
The full letter follows:
TO THE MEMBERS OF THE UNITED STATES CONGRESS:
The undersigned organizations urge you to quickly enact temporary and targeted liability relief legislation related to the COVID-19 pandemic. These crucial protections should safeguard businesses, non-profit organizations, and educational institutions, as well as healthcare providers and facilities from unfair lawsuits so that they can continue to contribute to a safe and effective recovery from this pandemic.
Right now, countless healthcare workers and facilities, as well as businesses and non-profit organizations of all types and sizes, are working around the clock to get our nation through this pandemic. From front-line medical professionals treating the afflicted and pharmaceutical companies racing to develop treatments and cures, to distillers producing alcohol-based hand sanitizers and manufacturers transforming their operations to construct vital personal protective equipment (PPE) and ventilators, to those providing a stable food supply, American businesses have rallied to help our country endure and emerge from this crisis. Many businesses also have had to shut their doors and absorb enormous losses for the sake of public health and are now looking for a path to reopen.
However, as those workers and businesses keep our communities safe and provide for the American people, our members and constituencies are concerned that, despite doing their best to follow applicable guidelines, they will be forced to defend against an onslaught of frivolous lawsuits. The prospect of such litigation and associated exorbitant legal costs are a deterrent to reopening. Further, this litigation could devastate those entities that are just beginning to reopen their doors or have kept them open throughout the crisis. Indeed, past surveys have shown that many small businesses are one lawsuit away from closing for good.
Absent a targeted safe harbor for those that work to follow applicable guidelines, the fear and uncertainty from boundless liability threatens to impede our country's social and economic recovery. In the wake of prior crises, Congress came together to pass timely and targeted liability protections with strong bipartisan support because lawmakers understood the acute economic threat of lawsuits at moments of maximum economic vulnerability. And while Congress has acted to provide some limited COVID-19-related liability protections for volunteer healthcare providers and some manufacturers of PPE in the CARES Act, much more must be done.
We ask that you quickly enact temporary liability protections for: (1) businesses, non-profit organizations, and educational institutions that work to follow applicable public health guidelines against COVID-19 exposure claims; (2) healthcare workers and facilities providing critical COVID-19-related care and services; (3) manufacturers, donors, distributors, and users of vaccines, therapeutics, medical devices, as well as PPE and other supplies (such as hand sanitizer and cleaning supplies) that are critical to the COVID-19 response; and (4) public companies targeted by unfair and opportunistic COVID-19-related securities lawsuits. In addition to being temporary, we believe that these liability protections should be limited in scope and preserve recourse for those harmed by truly bad actors who engage in egregious misconduct.
The need for liability protections and relief is clear. Several governors and state legislatures have already implemented COVID-19-related liability protections for key sectors in their states, but a uniform national response is necessary. Now is the time for Congress to take strong action to stop a growing wave of lawsuits from getting in the way of what we all want and need: healthy citizens and a strong economy.