Major industry groups are urging congressional leaders to provide "limited and rational safe harbors" for businesses to protect them from coronavirus-related lawsuits.
In a letter sent Sunday to Congress, the associations — including the Alliance for Automotive Innovation, the Motor & Equipment Manufacturers Association and the National Association of Manufacturers — said companies that have remained operational during the economic and public health crisis are at risk of becoming the targets of lawsuits related to the pandemic that could impede their recovery.
"Companies doing their best to control the spread of this disease with the limited guidance available deserve legal protection," the groups said in the letter. "Congress should not allow good actors to be held liable for events beyond their control."
The auto sector has stepped up to supply products critical to help those on the front lines and to slow the virus’ spread, but the effort to bring employees back into factories comes with the risk of those workers becoming infected with COVID-19. The UAW has reported several deaths related to the coronavirus among workers at plants operated by Ford, General Motors and FCA. Other automakers and suppliers also have confirmed some employees have died from COVID-19. It's unclear how many automaker employees have been infected with the virus.
The associations are asking Congress to expand the scope of certain provisions under the Public Readiness and Emergency Preparedness Act, which provides liability immunity for activities related to the use of regulated medical products during a public health emergency. That includes the production of personal protective equipment during the COVID-19 crisis as companies that don't normally make those products step in to provide masks and ventilators.
In addition, the groups recommended Congress temporarily suspend lawsuits that "threaten to shut down vital industries."
The groups, which represent most major manufacturing sectors, said they were not asking for Congress to protect companies from all liability, however.
"We are not seeking to protect bad actors that operate in reckless or intentional disregard of available guidance on reducing the spread of COVID-19," the associations said. "Therefore, liability protections should be appropriately tailored and limited to the present emergency and a reasonable period of recovery."
Senate Majority Leader Mitch McConnell, R-Ky., has insisted that the next coronavirus bill needs to include liability protection for businesses as they prepare to reopen and call employees back to work. House Speaker Nancy Pelosi, D-Calif., in remarks during a press conference last week, said Democrats "would not be inclined" to support any immunity from liability.
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May 05, 2020 at 02:50AM
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Industry groups call for liability protections during coronavirus crisis - Automotive News
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