AIA Testifies Against Bill To Change Maryland Legal System
"Market Share Liability Spells Disaster for Maryland's Economy"
ANNAPOLIS, MD, March 9, 2000 – The American Insurance Association today said that legislation to create market share liability for lead paint lawsuits would seriously damage Maryland's civil liability system, and ultimately have a disastrous effect on Maryland's economy. AIA's comments were made during and following a hearing on House Bill 1079 before the House Judiciary Committee.
"Market share liability would seriously threaten the economic growth and prosperity of Maryland," said John A. Andryszak, AIA assistant vice president, mid-Atlantic region. "No other state in the country allows this flawed theory to be used in civil lawsuits, and that is no accident," he said.
Market share liability would allow a lawyer to sue a manufacturer on behalf of a client even if there is no proof whatsoever that the manufacturer's product caused harm to that client. This theory allows a plaintiff to hold a manufacturer liable if the manufacturer made the same TYPE of product that caused the plaintiff's harm.
"This violates the most basic notion of fairness that we all share," said Andryszak. "The fact is that this discredited theory of liability has been repeatedly rejected by Maryland's courts. Having lost this battle in the courtroom, the trial lawyers are now trying to get the legislature to buy their flawed logic.
"Maryland has made tremendous progress in the past few years and enacting this kind of anti-business legislation will seriously damage the state's ability to retain and attract new business," Andryszak said. "If the Maryland General Assembly adopts market share liability for lawsuits against one industry, all business sectors will fear they may be next. There is no question that making this fundamental change in Maryland's legal system will deter businesses from expanding and/or relocating to our state," he said.
"To be honest, I'm sorry we have to be here today. AIA would much prefer to focus attention on passing positive measures, such as a commercial insurance deregulation bill or a structured settlement protection statute. However, I think it is critical that our legislators understand just how bad this bill would be for Maryland," said Andryszak.
"The good news is that I have every confidence that our legislature will see through the smoke and mirrors of the trial lawyers and do the right thing by maintaining the integrity of Maryland's civil liability system," he concluded.
The American Insurance Association represents more than 300 property-casualty insurance companies, which employ more than 150,000 people across the country, write $68 billion in annual premiums, and pay nearly $2.2 billion in state taxes and fees each year. AIA member companies write 26 percent of the property/casualty insurance coverage in Maryland. AIA is headquartered in Washington, DC, and has representatives in every state.