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Why It Matters.The U.S. legal system is the costliest in the world and directly effects the parking industry’s ability to remain competitive. The parking industry needs a legal system that is fair, consistent and allows for equal consideration of both plaintiff and defendant motivations.
NPA's Position
NPA supports reform measures that protect defendants from egregious lawsuits for minor infractions. In addition, clear guidelines must be set for any conduct that will subject defendant’s to liability.
Priority issues include:
Patent Trolls: NPA supports the formation of peer operator coalitions to combat patent trolls.
Tort Reform: Tort Reform must be a priority for the next Congress. NPA supports measures that ensure damages are kept within reason and are fairly aligned with infractions.
“Gotcha” Lawsuits: Minor infractions of government statute requirements are costing businesses billions of dollars in class action litigation for small reporting technicalities that do not harm consumers in any way. Examples of statues include the Fair and Accurate Credit Transactions Act (FACTA) and Private Attorneys General Act (PAGA).
ADA Reform: NPA encourages a more practical handicap usage requirement based on data of actual need and usage on a per garage basis.
Background
According to the U.S Chamber’s Institute for Legal Reform, litigation costs small businesses in America over $100 billion per year. Businesses are spending massive amounts of time and money to combat frivolous lawsuits. Reducing lawsuit abuse will allow for a more efficient, reliable, and effective legal system that works in favor for both parties.
Talking Points
U.S. legal liability costs are double those of the UK, three times higher than those in France and five times higher than those in Japan. 1
In the United States, the tort system costs us 2% percent of GDP. In most developed nations, that number falls to 1% percent. 2
One in three business owners report that they have been sued or threatened with a lawsuit. Most are for frivolous reasons. The parking industry is often the go-to target for slip and fall accidents – and lawsuits amongst pedestrians. 3
Two-thirds of business say that if they were sued they would likely have to pass legal costs on to consumers, reduce employee benefits and hold off on hiring new employees. 4
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