Businesses, lacking legal immunity, fear COVID-19 lawsuits

Jan 12, 2021 11:33:52 AM
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Businesses, lacking legal immunity, fear COVID-19 lawsuitsA battle over providing businesses with legal immunity to COVID-19 lawsuits is on hold for the time being in Congress, but businesses are still worried

December 20, 2020, 5:30 PM

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Businesses, lacking legal immunity, fear COVID-19 lawsuits

Businesses, lacking legal immunity, fear COVID-19 lawsuits

The Associated Press

PORTLAND, Maine -- Plans for a lawsuit against a Maine venue that hosted what became a “superspreader” wedding reception underscore the liability risks to small businesses amid the coronavirus pandemic and an uphill push by Republicans in Congress to give such outfits legal immunity.

Behemoths like Walmart and Tyson Foods, which have been the target of COVID-19-related lawsuits, can largely absorb any losses. But hundreds of negligence lawsuits have been filed across the country, with mom-and-pops most fearing the prospect of litigation that could put them under.

“They can end up losing even if they win a lawsuit,” said David Clough, of the National Federation of Independent Businesses, because costly litigation can bankrupt small businesses that don’t have deep pockets.

For the family-owned Big Moose Inn in Millinocket, Maine, it’s not a theoretical problem. The estates of at least three nursing home residents whose deaths were linked to a wedding reception there in August intend to sue the inn and the nursing home, said the families’ attorney, Timothy Kenlan.

The wedding and reception sparked outbreaks that infected at least 180 people and caused at least eight deaths, state officials said. Seven of those who died were residents of the Maplecrest nursing home in Madison, Maine, whose attorney declined to comment.

A notice of claim indicates damages will be sought from the inn for hosting an event that Kenlan contends violated state safety protocols during a pandemic.

“What stands out here is the egregious conduct. They put profits ahead of people,” Kenlan said. “They were flouting the rules.”

Paul Brown, attorney for Big Moose Inn, said there’s no way to prove the wedding reception was the source of infections. There were several other events including an outing at a lake and the wedding itself at a nearby church that were just as likely to have been the source of infections, he said.

The number of reception guests at the inn exceeded the state limit of 50 people, the Maine Center for Disease Control and Prevention said. But Brown contends the business tried to follow rules by dividing the reception into two groups of fewer than 50, so there was no violation, he said.

During the reception, signs warned guests to wear masks and to maintain distance, but there was no mandate at the time to enforce those rules.

A national lawsuit tracker by Hunton Andrews Kurth indicates more than 6,000 coronavirus-related complaints have been filed across the country.

Many involve attacks on pandemic restrictions, while others have targeted banks and insurers, and there have been thousands more workers’ compensation claims, as well, said Alexandra Cunningham, of the Richmond, Virginia, law firm.

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