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Law360 (April 21, 2020, 9:52 PM EDT ) The Civil Justice Association of California and a coalition of industries deemed essential during the coronavirus pandemic have urged Golden State Gov. Gavin Newsom to broaden a law protecting private entities from litigation liability.
In a letter dated Friday, the CJAC and nearly four dozen organizations representing the hospitality, health care, transportation, restaurant, pharmaceutical and other industries asked the governor to expand the Emergency Services Act, which protects private entities from civil liability during times of crisis, to include all industry sectors that are providing "critical goods, services and facilities" during the pandemic.
"California businesses are in survival mode, yet they have stepped up in amazing and heroic ways to respond to the crisis," the letter said. "They should not be punished with class actions and private rights of action that attempt to capitalize on this crisis. Our businesses and the economy cannot sustain further damage."
Under the ESA, state and political subdivisions have sweeping immunity for discretionary functions, according to the letter, Certain private entities also have immunity from civil liability, but the act preserves the ability for individuals to seek remedies for gross negligence and willful misconduct, the groups said.
The business groups want Newsom to issue an executive order to clarify and expand current immunity provisions to apply to all private entities providing critical services during the pandemic, according to the letter.
"Essential businesses have demonstrated extraordinary efforts in the face of the COVID-19 pandemic, providing vital goods and services to Californians while enduring hardships of their own," CJAC President and CEO Kyla Christoffersen Powell said in a statement Tuesday.
"During this time of economic uncertainty, California needs businesses — large and small — to continue to operate, produce and employ," Powell said.
Newsom's office could not be reached for comment Tuesday.
The groups commended Newsom on his response to the coronavirus pandemic while they urged him to expand the state's emergency litigation protections.
The groups that signed the letter with CJAC included the Agricultural Council of California, California Apartment Association, California Cable & Telecommunications Association, California Grocers Association, California Hotel & Lodging Association, California Restaurant Association, California Trucking Association, Cooperative of American Physicians Inc., Hotel Association of Los Angeles, Pharmaceutical Research and Manufacturers of America, and Western Growers Association.
A number of local Chambers of Commerce also signed the letter, including El Dorado County, Elk Grove, Folsom Chamber, Palm Desert Area, Rancho Cordova and Roseville Area.
--Editing by Jill Coffey.
For a reprint of this article, please contact reprints@law360.com.
