Hearing Our Cause
NLBMDA’s Kelly testifies before House Small Business Committee on the need for the Innocent Sellers Fairness Act.
NLBMDA chairman Steve Kelly, president of Kelly Bros. Lumber in Covington, Ky., was given the opportunity to testify before the House Small Business Committee May 17 on the importance of common-sense legal reform such as Innocent Sellers. At the invitation of chairwoman Nydia Velazquez (D-N.Y.) and ranking minority party member Chabot, Kelly gave examples of lawsuit abuse in the building supply industry and highlighted Innocent Sellers as a solution.
Here are a few of the examples Kelly shared with the committee:
- A dealer in Ohio sold slate-style shingles to a customer. The shingles were shipped directly from the wholesaler to the jobsite; the dealer never saw nor touched the product. The coating later wore off some of the shingles, resulting in a spotty appearance, and the dealer was forced to pay $16,000 in a settlement.
- Another dealer sold bricks, manufactured independently of the dealer and delivered directly to a customer. The dealer was named as a co-defendant in a lawsuit claiming manufacturing defects and encouraged by his insurance company to settle the case to avoid a court battle.
- In Texas, a lumber dealer sold a 2x10x24 board to a contractor who used it for scaffolding. While two people were standing on it, the board broke. One of the individuals was able to catch himself, but the other fell and was hurt. They are suing the lumber company for selling them a “defective” board, even though it was never suitable for scaffolding purposes. The case is still pending and already has cost the lumber dealer thousands of dollars to defend.
Using these examples, Steve explained how Innocent Sellers would protect sellers from predatory lawsuits by removing liability if they merely supplied the product and had no part in its manufacture, design, or installation. Instead of imposing liability without wrongdoing by sellers and exposing them to all of the damages allegedly suffered by a plaintiff, the Innocent Sellers Fairness Act would hold sellers responsible only in proportion to their wrongdoing, freeing them from liability when they have done nothing wrong.
Other committee witnesses, including Lisa Rickard of the U.S. Chamber of Commerce’s Institute for Legal Reform, and Karen Harned of the National Federation of Independent Business, echoed Kelly’s call for legal reform and indicated support for common-sense measures such as Innocent Sellers.
While several Democrats on the committee raised concerns about limiting plaintiffs’ access to courts, their willingness to listen to Kelly present the building supply industry’s case is a positive step forward for Innocent Sellers. Dealers around the country can help NLBMDA build on this momentum by contacting their representatives through www.buildthevote.org and asking them to co-sponsor H.R. 989. This Web site contains additional information on Innocent Sellers, including Kelly’s testimony, and tools to help you get involved in this important cause. Your willingness to take action is critical to successfully advancing this common-sense legislation. –Sarah Owen is director of government affairs and grassroots advocacy for NLBMDA.
The National Lumber and Building Material Dealers Association represents more than 8,000 lumber and building material companies with more than 400,000 employees, 20 state and regional associations, and the industry’s leading manufacturers and service providers. NLBMDA is the voice of America’s building suppliers. www.dealer.org.
–NLBMDA chairman Steve Kelly told House members of ISFA’s importance to LBM dealers.
