This article has been saved to your Favorites!

Ind. Lawmakers Propose Coronavirus Liability Shield Bill

By Y. Peter Kang · 2021-01-05 20:53:14 -0500

Indiana lawmakers kicked off a new legislative session Monday by introducing a bill that would provide a broad civil liability shield for businesses, premises owners and others in relation to COVID-19 exposure suits.

State Sen. Mark Messmer, a Republican, floated S.B. 1, which would provide virtually any individual or entity a safe harbor from civil suits over damages related to coronavirus exposure so long as the alleged wrongdoing does not rise to the level of gross negligence or willful or wanton misconduct.

Messmer said that although there have been no such suits filed in Indiana so far, the bill serves as a stopgap for businesses trying to survive amid the pandemic. The novel coronavirus has killed 8,292 people in the Hoosier State as of Monday, according to state figures.

"Many Hoosier businesses, especially small businesses, are already struggling because of the COVID-19 pandemic, and these costly accusations could very well put a reputable company out of business," Messmer said in a statement. "I don't anticipate a large number of cases like this, but it's important we prepare and protect factories, local shops, restaurants, houses of worship and other organizations so Hoosiers can maintain their jobs and our economy can continue to recover."

The bill, which also states that cases of gross negligence must be established through clear and convincing evidence, was jointly introduced by Sens. Eric Koch and Liz Brown, also Republicans, and co-authored by three other GOP state senators.

If enacted, the legislation would be retroactive to March 1, 2020, and remain in effect until Dec. 31, 2024. The liability shield would cover associations, institutions, corporations, companies, limited liability companies, trusts, partnerships, governmental entities and "any other organization or entity," according to the bill.

While the bill does not single out health care providers, the text states that it applies in addition to the Indiana Medical Malpractice Act.

However, a similar bill floated Monday in the Indiana House of Representatives, H.B. 1002, does indeed cover health care providers and would be retroactive to Feb. 29 and remain effective until April 1, 2022.

The Indiana General Assembly has a Republican majority, and Gov. Eric Holcomb is also a Republican.

--Editing by Daniel King.

For a reprint of this article, please contact reprints@law360.com.