Deep-pocketed NY trial lawyers on crash course with Hochul over car-insurance reforms

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The trial lawyers’ lobby is one of the most deep-pocketed and influential groups targeting Albany — putting it on a crash course with Gov. Kathy Hochul over her push to crack down on runaway litigation, a new report revealed.

The big-gun special-interest lobby includes a former-college-roommate lawyer and longtime associate of state Assembly Speaker Carl Heastie (D-Bronx) and the son of a state senator from Queens.

“Gov. Kathy Hochul is fighting fraud and excessive lawsuits to make auto insurance more affordable for New York drivers — and this report offers a peek behind the curtain at the pro-litigation influence machine working to maintain the high-cost status quo,” said Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, which did the study.

Governor Kathy Hochul holds a press conference at 1 Ward Island where she announced legislation designed to bring down the cost of car insurance. LP Media

Trial lawyers last year spent more than $1 million on political-campaign contributions and $1.579 million on lobbying.

The New York State Trial Lawyers Association’s lobbying stable includes Heastie buddy Patrick Jenkins, whose firm, Patrick Jenkins & Associates, received $528,000 from the trial lawyers group last year.

Ken Ridett of Ridett Associates and a former counsel to Senate Republicans was paid $526,000 by the same group.

Another lawyer advocacy group, the New York State Academy of Trial Lawyers, paid Parkside group lobbyist Evan Stavisky — the son of Queens Democratic state Sen. Toby Stavisky — $139,500 last year.

The larger of the two lobbying groups, NYSTLA PAC, generally contributed $168,600 to Assembly campaign committee accounts and $189,600 to Senate campaign committee accounts

It also specifically doled out $50,000 to PACs overseen by the leaders of the legislature: $25,000 to Heastie and $25,000 to Senate Majority Leader Andrea Stewart-Cousins.

Part of Hochul’s auto-insurance reform plan includes putting a cap on damages involving potential pain and suffering for drivers at fault or engaging in criminal behavior. LP Media

“Trial lawyers remain influential in the Legislature through their targeted approach to key lawmakers and lobbying expenses,” the report said.

“Notably, trial lawyers contributed heavily to Governor Kathy Hochul in her 2022 election campaign but have since dropped off.”

Part of Hochul’s auto-insurance reform plan includes putting a cap on damages involving potential pain and suffering for drivers at fault or engaging in criminal behavior at the time of an incident.

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Her proposal would similarly target uninsured motorists who have violated state financial responsibility laws, individuals convicted of driving while impaired and those committing a felony or fleeing the scene.

Additionally, she is proposing legislation to ensure prosecutors can seek criminal penalties against any individual responsible for organizing a staged accident, not just the person behind the wheel.

Hochul included her car-insurance savings plan in her executive budget.

Superintendent of State Police Steven James at a press conference. LP Media

But the Democratic-led Assembly and Senate did not include it in their recently released fiscal plan.

Trial lawyers claimed Hochul’s plan limits the rights of injured residents to sue and lets insurance firms off the hook.

New York Trial Lawyers Association President Andrew Finkelstein disputed that insurance companies will lower premiums if “crash victims get less care.”

Hochul said her plan, similar to a Florida law, could slash insurance premiums for New York drivers by 15% to 20%. LP Media

“History shows the opposite. Insurers cut costs, pocket the savings, and premiums never go down,” Finkelstein said after Hochul introduced the plan, calling it “Nothing more than a Victim Tax.”

But Hochul has said her plan, similar to a Florida law, could slash insurance premiums for New York drivers by 15% to 20%.

New Yorkers pay an average of $4,000 per year for car insurance — a whopping $1,500 more than the national average.

Hochul has powerful interests supporting her plan as well.

A group bankrolled in part by Uber and Citizens for Affordable Rates, or CAR, has spent $8 million this year — $6 million on digital ads and $2 million on digital ads — touting her plan, Board of Elections records show, according to StreetsBlog NYC.

Insurance firms or their reps also have contributed more than $14,000 to Hochul’s campaign and the state Democratic committee in the past few year, including: Sy Sternberg, former chairman and CEO of New York Life Insurance Company; Travelers; Allstate; Zurich; Chubb; Cigna; New York Insurance Association Inc. PAC; Metropolitan Life Insurance Company, or MetLife; American Property Casualty Insurance Association, or APCIA, and Nationwide Mutual Insurance Company.

Insurers backing Hochul’s reforms also have lobbyists in Albany.

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