ALBANY – The Metropolitan Transit Authority bleeds $50 million a year settling and paying out claims stemming from frivolous lawsuits, Gov. Kathy Hochul and MTA Chair Janno Lieber claimed Friday.
The “billboard lawyer industry” is to blame for the shocking number of paid-out lawsuit claims, Lieber said, flanking Hochul during a press conference in Manhattan as she pushed for reforms to state insurance laws meant to lower that number.
“We are, after all, the deep pocket,” Lieber said. “If they can get a jury to say the MTA was 1% responsible, we're responsible for the entire damages. And frequently the other guys don't even have insurance."
Hochul agreed, saying that large number of settled lawsuits add up.
“It’s also just the accumulation of smaller payouts. They all add up as well,” Hochul said.
Lieber pointed to a case the MTA was dragged into court over last year where an uninsured driver struck a bus, hurting passengers.
"A guy blew through a stop sign, hit the MTA bus, bounced off, hit some passengers, and somehow or another, his lawyer convinced the jury that the MTA was 5% responsible and then had to pay,” Lieber claimed.
Hochul’s proposed changes would limit who can collect damages in the event of a payout.
A rep for the New York Trial Lawyers Association, which is fighting Hochul’s proposal, blamed the MTA, alleging safety issues, and insurance companies for driving up costs.
“The simplest way for the MTA to save money is to invest in safety and proper training," the group's president, Andrew Finkelstein, told The Post in a statement.
"New Yorkers should ask: who does this make it more affordable for? The answer is insurers who delay, deny, and defend," he said.
"Rather than invest in making New York safer, they are trying to take away New Yorkers’ constitutional rights."