Please Define Frivolous?

what is a 'frivolous lawsuit"?

So, this is broader reaching than the power sweeping and asphalt industries. It affects all business owners but particularly small business owners. I am talking about the Lawsuit Abuse Reduction or S.237 and you should be contacting your Senator about getting this passed and here is why….

In 1993, the law was changed. This change created two issues with the biggest being the inclusion of a Safe Harbor period for lawsuits. What that means and what that did was to give attorneys the ability to file in the court but have 21 days to withdraw the case. Result: Open the floodgates for personal injury attorneys! Here is an example:

Charlie the power sweeper services a commercial lot once per month. Two weeks after a sweep, a patron to the establishment claims to have fallen and got hurt on an area that he doesn’t even service. Looking for the money trail, the attorney files a suit naming Charlie, the retail establishment, the landscaper and, the security company. Now Charlie hasn’t been on the lot in weeks and he doesn’t service the area of the alleged fall but being a law-abiding citizen, he sends the notice of pending action that he received to his insurance company. The fact that he is eventually dismissed from the case doesn’t change the fact that his insurance company now rates him with this risk and increases his insurance rates. Unfair? YOU BET! Want to hear another?

Sally the sweeper services a lot for a bank. A patron goes to the ATM and back to their car where within 5 minutes an ambulance arrives because the patron “has fallen.” Cameras show that the patron did not fall but the insurance company doesn’t get that message conveyed clearly and an adjustor offers the patron $5000 to settle. The patron agrees, and it is over except guess how much Sally’s deductible is? Yep, $5000. The insurance company has just spent $5000 from Sally’s pocket due to this claim.

This and thousands of stories just like this are coming in left and right. This is why ASCA, NAPSA and NAPSA members spent time on Sept. 4-5 in Washington DC to visit Senators and tell these stories. The numbers speak for themselves. The average frivolous lawsuit costs power sweepers between $15,000 - $20,000 just to have dismissed or settled. The insurance companies are settling because is it cheaper than adjudicating them, it’s just a business decision for them. This hurts you, the small business owner. So, what can you do? Contact your Senators to urge them to pass S.237. This bill has passed in the House of Representatives, but we need your Senators to pass S.237 as well. NAPSA and ASCA have visited with many Senate representatives but you, the constituent, need to email your Senators to urge them to pass this law. This bill was introduced by the National Federation of Independent Business, so it covered far more than just sweeping and paving. For more information, contact NAPSA at [email protected].


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