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Ivey issues order providing ‘much-needed’ COVID-19 liability protections for businesses, health care providers

Governor Kay E. Ivey on Friday issued two new supplemental state of emergency proclamations related to the coronavirus (COVID-19) pandemic.

The two proclamations issued Friday respectively represent the eighth and ninth total supplemental SOE proclamations that she has issued related to the outbreak.

The eighth proclamation, available here, provides certain liability protections to businesses, health care providers and other entities.

To be clear, this “Safe Harbor” order does not provide blanket immunity; the order does not at all shield entities from claims of egregious misconduct. Rather, it protects against frivolous lawsuits as the state of Alabama looks to safely and responsibly reopen its economy.

“I want to do everything within my authority to protect businesses as Alabama’s economy gets up and running again,” Ivey explained in a statement. “As we resume operations, the very last thing a business owner needs to worry about is a frivolous lawsuit from responding to COVID-19. Let me be clear, this in no way shields them from serious misconduct. If someone knowingly abuses the public during a time of crisis, they should be held accountable and prosecuted as such.”

Based on the Business Council of Alabama’s (BCA) discussion with the U.S. Chamber of Commerce, it is believed that Alabama with Ivey’s order becomes the first state in the nation to achieve this “Safe Harbor” status related to the pandemic. BCA president and CEO Katie Boyd Britt expressed that the association is grateful to the governor for her leadership in this regard.

“BCA applauds Governor Ivey for taking this important step to stand up for Alabama jobs. As we all navigate this unprecedented time, today’s order adds much-needed clarity and reassurance. Our state’s businesses, workers and families will benefit as a result,” Britt stated.

The order came after State Senator Arthur Orr (R-Decatur) had introduced legislation to accomplish very similar immunity protections. The legislation had stalled because the legislature had agreed to only handle budget and local bills for the remainder of the 2020 regular session.

However, this type of legislation could still be featured in a special session later this year.

Alabama Civil Justice Reform Committee (ACJRC) Chairman Tom Dart said in a statement, “ACJRC praises Governor Kay Ivey for issuing today’s emergency executive order and urges the Alabama Legislature to make the protection permanent during its next meeting.”

ACJRC is comprised of the state’s top business associations working together for a fair legal system within the state.

According to the governor’s office, Ivey’s eighth supplemental state of emergency proclamation protects health care providers from a frivolous lawsuit based on actions they took or failed to take as a result of the COVID-19 pandemic.

Further, the order protects businesses from frivolous lawsuits when they conduct COVID-19 testing or distribute PPE to help protect people from COVID-19.

The order is based on two specific aspects of the Emergency Management Act:

The Act itself grants immunity in certain instances where people or companies are trying to comply with the state’s emergency orders.

The Act also gives the governor power to take steps necessary to promote and secure the safety and protection of the public. Like the other governors who have extended these protections, Governor Ivey certainly believes that these reasonable, common-sense protections for these groups will promote the safety and security of the general public.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

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