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Business Lobbying Helped Slow Sex Abuse Liability Bill

July 30, 2012
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By Kitchenman, Andrew
Proquest LLC

A bill that would eliminate the statute of limitations for sex abuse cases and extend the liability for employers faced resistance from business-backed groups, including insurers.

Both the Assembly and Senate Judiciary Committees released their versions of the bill.

The Assembly version would allow all past claims to be revived for two years.

This has troubling implications for business advocates, who say they are open to a compromise.

"The bottom line is that this is a very sensitive issue, obviously, and no one wants to stand in the way of sex abuse victims having some recovery for some of the things that have been done to them," said Marcus Rayner, executive director of the New Jersey Lawsuit Reform Alliance.

While employers may be open to expanding the statute of limitations, completely eliminating it - along with changing the standard for finding employers negligent for abuse - could harm businesses, according to Rayner.

Rayner said the "simple negligence" standard in the bill would expand the liability for employers to include those that "should have known" about abuse, rather than those who knew about abuse and failed to act against it.

"You get a very dangerous liability situation that will undoubtedly increase rates," Rayner said.

New York City is requiring special insurance for organizations that serve children that would specifically insure against abuse claims.

Copyright: (c) 2012 Journal Publications Inc.
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