NY State Senate Bill 2017-S6484

Senate Bill S6484

2017-2018 Legislative Session

Relates to contracts in small print, procedural reciprocity for arbitration agreements in consumer transactions and consumer arbitration

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to judiciary
May 24, 2017	referred to judiciary

co-Sponsors

2017-S6484 (ACTIVE) - Details

See Assembly Version of this Bill:: A7445
Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §7501, add §7515, CPLR; add §5-336, amd §5-702, Gen Ob L; amd §94-a, Exec L; add §2801-h, Pub Health L

2017-S6484 (ACTIVE) - Summary

Relates to contracts in small print, procedural reciprocity for arbitration agreements in consumer transactions and consumer arbitration; relates to the prohibition of certain and wrongful death claims; relates to powers and duties of the consumer protection division and contracts of adhesion; relates to protecting against certain contracts of adhesion in the provision of health care.

2017-S6484 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6484               Revised 01/18/18

SPONSOR: LANZA
 
TITLE OF BILL:

An act to amend the civil practice law and rules, in relation to
contracts in small print, procedural reciprocity for arbitration agree-
ments in consumer transactions and consumer arbitration; to amend the
general obligations law, in relation to the prohibition of certain
contractual agreements to arbitrate personal injury and wrongful death
claims; to amend the executive law, in relation to powers and duties of
the consumer protection division and contracts of adhesion; and to amend
the public health law, in relation to protecting against certain
contracts of adhesion in the provision of health care

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of his Advisory
Committee on Civil Practice.

This measure would remedy injustices arising out of contracts of adhe-
sion in the context of consumer contracts.

We support and encourage arbitration in the civil practice context.

Arbitration is a creature of contract law. Properly used, it can promote
fair, expeditious and economical resolution of disputes. The authority
to arbitrate rather than to proceed in court depends on the agreement of
the parties to arbitrate, however. In fact, arbitration has proven to be
most successful when agreed to between parties of equal bargaining power
as part of an arms' length agreement. Thus, we believe that vital, in
realizing the State's overarching objective of securing equal access to
justice for all New Yorkers, that each party to a contract freely be
able to choose either arbitration or litigation as the dispute resol-
ution mechanism should issues arise relating to that contract. Indeed,
such a decision must be voluntary.  When an arbitration clause is foist-
ed upon a party to a contract, that choice is precluded; thus, access to
justice may be denied at the very commencement of the parties' relation-
ship.

We believe that the prevalence of arbitration agreements in contracts of
adhesion in transactions for personal, family or household services New
Yorkers cannot do without - e.g., telephone, internet, nursing home,
credit cards - and the proliferation of conflicting court decisions
interpreting these agreements in inconsistent ways, often producing
substantial inequity (in circumstances where the parties have not had
the opportunity genuinely to choose arbitration) requires prompt
redress. Another area of concern relates to the proliferation of arbi-
tration clauses in contracts affecting the rights, remedies or obli-
gations between health care providers and patients relative to personal
injuries to, or wrongful death of, patients.

This measure would amend the law to protect some of the most vulnerable
New Yorkers from predatory behavior and from being compelled to arbi-
trate against their wishes in a way we believe to be contrary to the
public policy of this State; to protect fairness in consumer and other
types of transactions that affect the health and well-being of New York-
ers; to create remedies targeting unconscionable contracts at the state
level; and to ensure access to justice for consumers as set forth here-
in.

This measure seeks to improve access to justice for New Yorkers by
amending current law in the following specific ways.

 
PROCEDURAL FAIRNESS, RECIPROCITY, MUTUALITY

This measure would amend CPLR 7501 to add language requiring a waiver of
the enforceability of an arbitration clause upon commencement of an
action to enforce a contract in a consumer transaction, other than an
action to enforce the arbitration clause, to stay arbitration or in aid
of arbitration. This amendment would provide reciprocity or mutuality
for the current effect of arbitration agreements that require that any
claim against a consumer arising out of or related to the contract must
be arbitrated. Current law is patently unfair: a consumer is denied all
rights to go to court if a dispute arises, but the contracting entity
may go to court and obtain a judgment.

 
CONSUMER ARBITRATION PROCEDURE UNDER CPLR ARTICLE 75

This measure would add a new CPLR 7515 to require that consumer arbi-
trations be conducted by a panel of arbitrators established and regu-
lated by the Superintendent of the Department of Financial Services. It
would require impartiality and competence standards. The arbitration
panel would be required to provide written findings of fact and conclu-
sions of law. New York law would control decisions, including New York
choice of law principles, where relevant. Any provision in a consumer
contract entered into in this State or by a resident of the State that
provides for arbitration by anyone other than a consumer arbitrator
appointed in accordance with these regulations would be void and unen-
forceable. Except where expressly agreed otherwise, either party could
seek relief by consumer class action arbitration pursuant to regulations
promulgated by the Superintendent, in accordance with article 9 of the
CPLR.

 
INSURED PERSONAL INJURY LIABILITY

A new General Obligations Law provision added by this measure would
generally invalidate arbitration provisions where (a) the agreement
requires arbitration of claims for personal injury or wrongful death,
and (b) the party seeking to enforce the arbitration provision has
applicable liability insurance coverage that applies to the claim in
issue. It would provide a prohibition against contractual provisions
requiring arbitration of claims for personal injuries or wrongful death
where no State statute provides otherwise.

 
CONSUMER NOTICE

This measure would amend the General Obligations Law requirements for
use of plain language in consumer transactions by adding requirements
regarding the size of type required for any clause relating to arbi-
tration in a consumer credit transaction and prohibiting any clause not
complying with that requirement from being received into evidence in any
trial, hearing or proceeding. The practical effect would be to prevent a
seeking to enforce a noncomplying agreement from moving to compel arbi-
tration.

 
CONSUMER PROTECTION DIVISION POWERS AND OUI-TAM


This measure would amend section 94-a of the Executive Law and is
modeled both on section 349 of the General Business Law and on State
Finance Law article XIII. The amendments would be limited to consumer
contracts of adhesion. First, they would empower the Consumer Protection
Division of the Secretary of State, upon an application by a consumer,
to determine whether the contract or agreement in question violates
public policy under the laws of this State, including but not limited to
section 94-A of the Executive Law, article 22-A of the General Business
Law and section 2801-h of the Public Health Law, and refer the determi-
nation to an enforcement entity for appropriate action.  Second, if no
action is brought to enforce the law by any Federal, State or local
agency, the statute would provide a new right of action for the consumer
to do so on behalf of the State. Remedies available would be an injunc-
tion or damages and attorney's fees for the prevailing plaintiff. Treble
damages are allowed, up to $1,000 in each instance, for willful or know-
ing conduct, and if awarded, such damages in excess of actual damages
shall be payable to the State.

 
CONTRACTS OF ADHESION IN THE HEALTH CARE SERVICES CONTEXT

This measure would add a new section 2801-h of the Public Health Law and
target provisions in health care provider contracts affecting the
rights, remedies or obligations between health care providers and
patients relative to personal injuries to, or wrongful death of,
patients. The new. Public Health Law provision would invalidate limita-
tions of legal rights regarding personal injuries (not just arbitration
agreements) effected by health care services contracts that the patient
must sign in order to receive health care.

Not inclusive of definitions, this new section provides that any written
contract that a health care provider requires a person to sign as a
condition to providing health care services, which attempts to affect
any legal rights, remedies or obligations relative to personal injuries
to, or wrongful death of, patients which may be occasioned in connection
with the health care services rendered, shall be regarded as a contract
of adhesion, and shall be deemed unconscionable and entered into by the
person under duress, and, accordingly, prohibited as against the public
policy of the State.

 
SEVERABILITY

If any provision of this measure or its application to any person or
circumstance is held invalid, the invalidity would not affect any other
provisions of this measure or application of those provisions to any
other person or circumstance, and to this end the provisions of this
measure are severable.

This measure, which would have no meaningful fiscal impact on the State,
would take effect immediately.

 
LEGISLATIVE HISTORY:

2017: S.6484 - Referred to Judiciary

 
LEGISLATIVE HISTORY:

This act shall take effect immediately and apply to contracts entered
into or agreements effective on or after the date on which it shall have
become a law; provided, however, that section four of this act shall
apply to all pending and future actions in which judgment has not yet
been entered.

2017-S6484 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6484
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 24, 2017
                                ___________
 
 Introduced  by Sen. LANZA -- (at request of the Office of Court Adminis-
   tration) -- read twice and ordered printed, and  when  printed  to  be
   committed to the Committee on Judiciary
 
 AN  ACT  to  amend  the  civil  practice  law  and rules, in relation to
   contracts in  small  print,  procedural  reciprocity  for  arbitration
   agreements in consumer transactions and consumer arbitration; to amend
   the general obligations law, in relation to the prohibition of certain
   contractual agreements to arbitrate personal injury and wrongful death
   claims;  to  amend the executive law, in relation to powers and duties
   of the consumer protection division and contracts of adhesion; and  to
   amend the public health law, in relation to protecting against certain
   contracts of adhesion in the provision of health care
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known as the access  to  justice  act  of
 2017:  remedying  injustices arising out of contracts of adhesion in the
 context of consumer contracts.
   § 2. Legislative intent. The legislature finds that it is  the  public
 policy  of  this  state to ensure access to justice for all New Yorkers.
 The unified court system in this state  supports  and  encourages  arbi-
 tration in the civil practice context and arbitration is one of a varie-
 ty  of  alternative  dispute resolution tools which help parties resolve
 disputes without a trial.  Arbitration has proven to be most  successful
 when  agreed  to between parties of equal bargaining power as part of an
 arm's length agreement. A vital component of access  to  justice  is  to
 preserve,  when  possible,  the  ability of New Yorkers to choose either
 arbitration or litigation when seeking a remedy if an injury or  dispute
 has  occurred.  When  an arbitration clause is foisted upon a party to a
 contract, that choice is precluded; thus access to justice may be denied
 at the very commencement of the parties' relationship.  The  legislature
 further finds that the prevalence of arbitration agreements in contracts
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09878-01-7

 S. 6484                             2
 
 of  adhesion  in transactions for personal, family or household services
 New Yorkers cannot do without - e.g., telephone, internet, nursing home,
 credit cards - and the interpretation of such arbitration agreements  by
 the courts has resulted in conflicting decisions and substantial inequi-
 ty  between the parties.  One area of concern is reflected in the effect
 of recent arbitrations on contracts affecting the  rights,  remedies  or
 obligations  between  health  care  providers  and  patients relative to
 personal injuries to, or wrongful death of, patients.  This  act  amends
 the  law to preclude predatory behavior against some of the most vulner-
 able New Yorkers against the public policy of  this  state,  to  protect
 fairness  in  consumer transactions and other types of transactions that
 affect the health and well-being of  New  Yorkers,  to  create  remedies
 targeting  unconscionable  contracts  at  the  state level and to ensure
 access to justice for consumers.
   § 3. Section 7501 of the civil practice law and rules, as  amended  by
 chapter 532 of the laws of 1963, is amended to read as follows:
   §  7501.  Effect  of  arbitration  agreement.   A written agreement to
 submit any controversy thereafter arising or any existing controversy to
 arbitration is enforceable without regard to the  justiciable  character
 of  the  controversy and confers jurisdiction on the courts of the state
 to enforce it and to enter judgment on  an  award.  In  determining  any
 matter  arising under this article, the court shall not consider whether
 the claim with respect to which arbitration is  sought  is  tenable,  or
 otherwise  pass  upon the merits of the dispute.  THE COMMENCEMENT OF AN
 ACTION IN A COURT OF LAW BY ANY PERSON TO  ENFORCE  A  CONTRACT  ENTERED
 INTO  BY,  OR  DELIVERED  TO,  A  RESIDENT OF THIS STATE THAT INVOLVES A
 CONSUMER TRANSACTION, AS DEFINED IN SECTION  FORTY-FIVE  HUNDRED  FORTY-
 FOUR OF THIS CHAPTER, SHALL CONSTITUTE A WAIVER OF THE ENFORCEABILITY OF
 THE  ARBITRATION CLAUSE IN THAT CONTRACT OR AGREEMENT. SUCH WAIVER SHALL
 NOT APPLY TO ANY ACTION BROUGHT TO ENFORCE THE  ARBITRATION  CLAUSE,  TO
 STAY ARBITRATION OR IN AID OF ARBITRATION.
   §  4.  The  civil  practice  law  and rules is amended by adding a new
 section 7515 to read as follows:
   § 7515. ARBITRATION OF DISPUTES REGARDING CONTRACTS OR AGREEMENTS IN A
 CONSUMER TRANSACTION. (A) 1. THIS SECTION SHALL GOVERN  ARBITRATIONS  OF
 DISPUTES REGARDING CONTRACTS OR AGREEMENTS ENTERED INTO BY, OR DELIVERED
 TO, A RESIDENT OF THIS STATE OR ENTERED INTO IN THIS STATE THAT INVOLVES
 A CONSUMER TRANSACTION.
   2.  PROCEEDINGS  PURSUANT  TO  THIS  SECTION  SHALL  BE  COMMENCED AND
 CONDUCTED IN ACCORDANCE WITH THIS ARTICLE, EXCEPT AS OTHERWISE  PROVIDED
 BY THIS SECTION AND IN ACCORDANCE WITH RULES PROMULGATED AND APPROVED BY
 THE SUPERINTENDENT OF THE DEPARTMENT OF FINANCIAL SERVICES.
   3.  THE  TERM  "CONSUMER TRANSACTION" SHALL BE DEFINED AS SET FORTH IN
 SECTION FORTY-FIVE HUNDRED FORTY-FOUR OF THIS CHAPTER.
   4. EXCEPT AS PROVIDED BY AN EXPRESS WAIVER CONTAINED IN SUCH  CONTRACT
 OR  AGREEMENT,  EITHER  PARTY  TO  A CONSUMER DISPUTE MAY SEEK RELIEF IN
 ARBITRATION BY WAY OF CLASS ACTION IN ACCORDANCE  WITH  THE  REGULATIONS
 PROMULGATED  BY  THE  SUPERINTENDENT  OF  THE  DEPARTMENT  OF  FINANCIAL
 SERVICES PURSUANT TO ARTICLE NINE OF THIS CHAPTER.
   (B) 1. THE RULES PROMULGATED BY THE SUPERINTENDENT OF  THE  DEPARTMENT
 OF  FINANCIAL  SERVICES SHALL SET FORTH STANDARDS FOR PANELS OF ARBITRA-
 TORS UNDER THIS SECTION AND ESTABLISH QUALIFICATIONS AND COMPENSATION OF
 INDIVIDUALS SEEKING APPOINTMENT TO THE ARBITRATION PANELS. THESE  STAND-
 ARDS SHALL REQUIRE THAT AN ARBITRATOR BE IMPARTIAL AND THAT THE ARBITRA-
 TOR  BE COMPETENT TO ARBITRATE THE SUBJECT MATTER OF EACH ARBITRATION TO
 WHICH HE OR SHE IS APPOINTED AS A PANEL MEMBER.

 S. 6484                             3
 
   2. ALL COSTS OF ARBITRATION SHALL BE PAID BY THE PARTY  PROVIDING  THE
 MONEY, PROPERTY OR SERVICE.
   3.  A  CONSUMER THAT PREVAILS IN WHOLE OR IN PART IN ARBITRATION UNDER
 THIS SECTION SHALL BE AWARDED REASONABLE ATTORNEY'S FEES BY THE ARBITRA-
 TOR.
   4. A CONTRACT ENTERED INTO, OR DELIVERED TO, A RESIDENT OF THIS  STATE
 THAT  PROVIDES FOR ARBITRATION OF A DISPUTE SHALL BE VOID IF IT PROVIDES
 FOR ARBITRATION BY ANY ARBITRATOR CONTRARY TO  THE  PROVISIONS  OF  THIS
 SECTION.
   (C)  DECISIONS  BY  MEMBERS  OF  THE  ARBITRATION PANEL SHALL:   1. BE
 PROVIDED TO ALL PARTIES;
   2. CONTAIN WRITTEN FINDINGS OF FACT AND  CONCLUSIONS  OF  LAW  AND  AN
 EXPLANATION OF THE CALCULATION OF ANY DAMAGES; AND
   3. BE BASED ON THE APPLICABLE SUBSTANTIVE LAW OF THIS STATE OR THE LAW
 OF ANY OTHER JURISDICTION THAT THE ARBITRATOR DETERMINES, BASED UPON THE
 CHOICE OF LAW PRINCIPLES OF THIS STATE.
   §  5.  The  general obligations law is amended by adding a new section
 5-336 to read as follows:
   § 5-336. PROHIBITION OF CONTRACTUAL PROVISIONS  REQUIRING  ARBITRATION
 OF  CLAIMS  FOR  PERSONAL  INJURIES  OR  WRONGFUL  DEATH WHERE THE PARTY
 ASSERTING THE CONTRACTUAL RIGHT TO  ARBITRATE  HAS  LIABILITY  INSURANCE
 APPLICABLE  TO THE CLAIM. EXCEPT WHERE OTHERWISE PROVIDED BY STATE STAT-
 UTE, ANY CONTRACTUAL  PROVISION  REQUIRING  ARBITRATION  OF  CLAIMS  FOR
 PERSONAL INJURIES OR WRONGFUL DEATH SHALL BE DEEMED WITHOUT EFFECT WHERE
 THE  PARTY  ASSERTING  THE  CONTRACTUAL RIGHT TO ARBITRATE HAS LIABILITY
 INSURANCE APPLICABLE TO THE CLAIM.
   § 6. Subdivision a of section 5-702 of the general obligations law  is
 amended by adding a new paragraph 3 to read as follows:
   3.  WRITTEN  IN  CLEAR  AND LEGIBLE PRINT NO LESS THAN EIGHT POINTS IN
 DEPTH OR FIVE AND ONE-HALF POINTS IN DEPTH  FOR  UPPER  CASE  TYPE.  THE
 PORTION OF ANY PRINTED CONTRACT OR AGREEMENT INVOLVING A CONSUMER TRANS-
 ACTION  OR  A  LEASE  FOR  SPACE TO BE OCCUPIED FOR RESIDENTIAL PURPOSES
 WHERE THE PRINT DOES NOT COMPLY WITH THIS PARAGRAPH MAY NOT BE  RECEIVED
 IN  EVIDENCE  IN ANY TRIAL, HEARING OR PROCEEDING ON BEHALF OF THE PARTY
 WHO PRINTED OR PREPARED SUCH CONTRACT OR AGREEMENT, OR WHO  CAUSED  SAID
 AGREEMENT  OR  CONTRACT  TO  BE PRINTED OR PREPARED. NO PROVISION OF ANY
 CONTRACT OR AGREEMENT WAIVING THE PROVISIONS OF THIS  SECTION  SHALL  BE
 EFFECTIVE.  THE  PROVISIONS  OF THIS PARAGRAPH SHALL NOT APPLY TO AGREE-
 MENTS OR CONTRACTS ENTERED INTO OR AGREEMENTS  EFFECTIVE  PRIOR  TO  THE
 EFFECTIVE DATE OF THIS PARAGRAPH.
   §  7.  Paragraphs  14  and  15 of subdivision 3 of section 94-a of the
 executive law, as added by section 21 of part A of  chapter  62  of  the
 laws of 2011, are amended to read as follows:
   (14)  cooperate  with  and assist consumers in class actions in proper
 cases; [and]
   (15) (I) DETERMINE, UPON AN  APPLICATION  BY  A  CONSUMER,  WHETHER  A
 CONTRACT  OR AGREEMENT OR ANY PROVISION THEREIN BETWEEN THE CONSUMER AND
 ANY PERSON, FIRM, CORPORATION OR ASSOCIATION OR AGENT OR EMPLOYEE THERE-
 OF VIOLATES THE PUBLIC POLICY OF THE STATE OF NEW YORK UNDER THE LAWS OF
 THIS STATE, INCLUDING BUT NOT LIMITED TO THE PROVISIONS OF THIS SECTION,
 ARTICLE TWENTY-TWO-A OF THE GENERAL BUSINESS LAW OR SECTION TWENTY-EIGHT
 HUNDRED ONE-H OF THE PUBLIC  HEALTH  LAW,  PROHIBITING  UNSCRUPULOUS  OR
 QUESTIONABLE  BUSINESS PRACTICES OR UNCONSCIONABLE CONTRACTS, OR REQUIR-
 ING THE CONSUMER TO ENTER INTO AN UNCONSCIONABLE CONTRACT TO OBTAIN  THE
 BENEFITS  OF  SUCH  CONTRACT  OR AGREEMENT, AND (II) REFER SUCH DETERMI-

 S. 6484                             4
 
 NATION TO THE APPROPRIATE UNIT OF THE DEPARTMENT, OR FEDERAL,  STATE  OR
 LOCAL AGENCY AUTHORIZED BY LAW FOR APPROPRIATE ACTION; AND
   (16)  create  an internet website or webpage pursuant to section three
 hundred ninety-c of the general business law.
   § 8. Section 94-a of the executive law is  amended  by  adding  a  new
 subdivision 6 to read as follows:
   6.  RIGHT OF ACTION. IF WITHIN SIXTY DAYS AFTER AN APPLICATION IS MADE
 BY A CONSUMER UNDER PARAGRAPH  FIFTEEN  OF  SUBDIVISION  THREE  OF  THIS
 SECTION  AN ACTION IS NOT COMMENCED BY ANY FEDERAL, STATE OR LOCAL AGEN-
 CY, THE CONSUMER MAY BRING AN ACTION IN HIS OR HER OWN NAME ON BEHALF OF
 THE STATE TO OBTAIN SUCH A DETERMINATION AND SEEK TO ENJOIN  ENFORCEMENT
 OF  THE  CONTRACT OR AGREEMENT OR ANY OF ITS PROVISIONS DETERMINED TO BE
 VOID UNDER SUCH SUBDIVISION, RECOVER HIS OR HER ACTUAL DAMAGES OR  BOTH.
 IN  SUCH  ACTION, PRELIMINARY RELIEF MAY BE GRANTED UNDER ARTICLE SIXTY-
 THREE OF THE CIVIL PRACTICE  LAW  AND  RULES.  THE  COURT  MAY,  IN  ITS
 DISCRETION,  INCREASE  THE  AWARD  OF DAMAGES TO AN AMOUNT NOT TO EXCEED
 THREE TIMES THE ACTUAL DAMAGES  UP  TO  ONE  THOUSAND  DOLLARS  IN  EACH
 INSTANCE,  IF  THE  COURT  FINDS  THE  DEFENDANT  WILLFULLY OR KNOWINGLY
 ENGAGED IN AN UNSCRUPULOUS OR QUESTIONABLE BUSINESS PRACTICE OR REQUIRED
 THE CONSUMER TO ENTER SUCH CONTRACT OR AGREEMENT TO OBTAIN ITS BENEFITS.
 ANY AMOUNT OF DAMAGES AWARDED TO PLAINTIFF IN EXCESS OF  ACTUAL  DAMAGES
 SHALL BE PAYABLE TO THE STATE. THE COURT MAY AWARD REASONABLE ATTORNEY'S
 FEES TO A PREVAILING PLAINTIFF.
   §  9.  The public health law is amended by adding a new section 2801-h
 to read as follows:
   § 2801-H. PROHIBITION OF CONTRACTUAL PROVISIONS IN HEALTH CARE PROVID-
 ER CONTRACTS AFFECTING  THE  RIGHTS,  REMEDIES  OR  OBLIGATIONS  BETWEEN
 HEALTH  CARE PROVIDERS AND PATIENTS RELATIVE TO PERSONAL INJURIES TO, OR
 WRONGFUL DEATH OF, PATIENTS. 1.  ANY WRITTEN CONTRACT THAT A HEALTH CARE
 PROVIDER REQUIRES A PERSON TO SIGN AS A CONDITION  TO  PROVIDING  HEALTH
 CARE  SERVICES  WHICH  ATTEMPTS  TO AFFECT ANY LEGAL RIGHTS, REMEDIES OR
 OBLIGATIONS RELATIVE TO PERSONAL INJURIES  TO,  OR  WRONGFUL  DEATH  OF,
 PATIENTS  WHICH  MAY  BE  OCCASIONED  IN CONNECTION WITH THE HEALTH CARE
 SERVICES RENDERED SHALL BE DEEMED UNCONSCIONABLE AND ENTERED INTO BY THE
 PERSON UNDER DURESS, AND IS PROHIBITED AS AGAINST THE PUBLIC  POLICY  OF
 THE STATE.
   2.  FOR  THE  PURPOSE OF THIS SECTION, THE TERM "HEALTH CARE PROVIDER"
 SHALL INCLUDE, BUT IS NOT LIMITED TO: (A) HOSPITALS, NURSING HOMES,  AND
 RESIDENTIAL  HEALTH  CARE  FACILITIES AS DEFINED IN SECTION TWENTY-EIGHT
 HUNDRED ONE OF THIS ARTICLE; (B) HOME CARE SERVICE AGENCIES  AS  DEFINED
 IN  SECTION  THIRTY-SIX HUNDRED TWO OF THIS CHAPTER; AND (C) PHYSICIANS,
 NURSES,  DENTISTS,  PODIATRISTS,  CHIROPRACTORS,  ORTHODONTISTS,   NURSE
 MIDWIVES,  NURSE  PRACTITIONERS,  PHYSICIAN  ASSISTANTS, ACUPUNCTURISTS,
 PHYSICAL THERAPISTS, OCCUPATIONAL THERAPISTS,  SPEECH  THERAPISTS,  HOME
 HEALTH  AIDES, NUTRITIONISTS, MEDICAL TECHNICIANS AND DENTAL HYGIENISTS,
 AS WELL AS ANY GROUPS, CORPORATIONS, PARTNERSHIPS OR JOINT VENTURES THAT
 PROVIDES SUCH SERVICES.
   3. NOTHING HEREIN SHALL BE DEEMED TO PROHIBIT OR OTHERWISE  INVALIDATE
 AN  OTHERWISE  LEGALLY VALID CONSENT FORM BEING EXECUTED BY OR ON BEHALF
 OF A PERSON UNDERGOING A  MEDICAL,  DENTAL,  PODIATRIC  OR  CHIROPRACTIC
 TREATMENT OR PROCEDURE WHERE SUCH CONSENT IS REQUIRED, PROVIDED THAT THE
 DOCUMENT  DOES NOT ATTEMPT TO DEFINE ANY RIGHTS, REMEDIES OR OBLIGATIONS
 RELATIVE TO PERSONAL INJURIES TO, OR WRONGFUL DEATH OF, PATIENTS ARISING
 OR RESULTING FROM, OR  CONTRIBUTED  TO  BY,  THE  HEALTH  CARE  SERVICES
 RENDERED.

 S. 6484                             5
 
   §  10.  If  any  provision  of  this chapter or its application to any
 person or circumstance is held invalid, the invalidity does  not  affect
 any  other  provisions or application of the provisions of the remainder
 to any other person or circumstance, and to this end the  provisions  of
 this chapter are severable.
   §  11.  This  act shall take effect immediately and apply to contracts
 entered into or agreements effective on or after the date  on  which  it
 shall  have  become  a law; provided, however, that section four of this
 act shall apply to all pending and future actions in which judgment  has
 not yet been entered.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S6484

Share this bill

Sponsored By

Andrew J. Lanza