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If you don’t fear the governor, then fear lawsuits, no liability insurance and losing your business license

Monday, May 11, 2020 - Posted by Rich Miller

* My weekly syndicated newspaper column

Gov. J.B. Pritzker has repeatedly said he’s delegating enforcement of his stay-at-home order to local governments.

That stance has frustrated some folks who want him to get tougher with violators (although he’d undoubtedly risk making martyrs out of them if he did crack down hard). And the governor’s position seems to have emboldened some local officials to defy the governor’s executive order and open up their economies on their own.

But when local governments refuse to enforce the governor’s order, it appears that trial lawyers might step in and insurance companies might take a walk.

A growing number of Downstate sheriffs, state’s attorneys and other officials have declared they won’t be enforcing the governor’s stay-at-home order. The Woodford County state’s attorney has said he won’t prosecute violators, as has the White County state’s attorney. Johnson County’s sheriff is one of several who’ve said he also wouldn’t arrest anyone for violating the order.

East Peoria’s mayor has gone beyond even that, officially allowing the “opening” of several businesses in his city on May 1 that were ordered closed by the governor’s executive order, including hair salons, spas, gyms and indoor recreational facilities. On May 15, bars and restaurants will be allowed to reopen at 50 percent capacity, and churches and theaters also will be allowed to reopen on that date.

But the Illinois Trial Lawyers Association has a message for those renegade municipalities and businesses preparing to throw open their doors: Watch out for lawsuits.

“The risk of opening early outweighs the benefit of limiting liability not only for the municipality but also for any employer who follows the guidelines of the municipality,” said ITLA President Antonio Romanucci in a written statement. “The prudent course would be to stay closed for another 25 days and limit any further potential spread which could lead to litigation.”

I asked Pritzker at a recent press conference what he thought of the warning from trial lawyers.

“Well, I was a businessman before I became governor,” Pritzker replied, “and I have to tell you that I would not want to defy the executive order because I believe that I would be taking on liability if I did that.”

Those towns and businesses could find themselves without insurance coverage should something go wrong.

Kevin Martin, executive director of the Illinois Insurance Association, told me that insurance policies are “not going to cover intentional acts.” In other words, if a business intentionally reopens in violation of the executive order and somebody injures himself at the establishment or contracts the virus, insurance coverage won’t be a given. The same may go for municipalities that openly violate the executive order.

The Illinois Department of Insurance also chimed in, saying via press release: “If businesses reopen contrary to public health guidelines and the state’s executive orders, there is risk that an insurer could find reason within the policy language to deny COVID-19 related claims.”

I asked Pritzker at that same press about insurance issues.

“It would not surprise me if insurance companies are found to not be required to cover you when you are defying essentially state law or a state executive order,” he replied.

The Illinois Retail Merchants Association has taken the position from the beginning that the executive order is “the best course of action for both consumers and employees,” the group’s president, Rob Karr, said via written statement. “We have also advised retailers of both the liability, insurance and other legal issues that may arise from not following the state’s guidance.”

The Illinois Restaurant Association also released a statement saying the group has encouraged its members to follow the executive order. The Illinois Licensed Beverage Association, which represents tavern owners, said it “does not advise” its members to violate the executive order.

The governor has pointed out several times that many of the businesses that are defiantly reopening have state licenses. Your local barber or salon owner needs a state license to open and operate. Cosmetologists, electrologists, massage therapists and nail technicians are just some of the others who must have state licenses. Restaurants and taverns are under state oversight and can be closed down by local public health departments in situations just like this.

The bottom line is, if you don’t fear the virus, then you might want to start to fear being wiped out by lawsuits not covered by insurance or losing your license

       

35 Comments
  1. - Louis G Atsaves - Monday, May 11, 20 @ 8:53 am:

    Get wiped out financially by following the Governor’s orders, or get wiped out financially by not following the Governor’s orders through lawsuits. How’s that for a choice here in Illinois Mr. and Mrs. Small Businesspersons? Almost Shakespearian in nature.


  2. - PublicServant - Monday, May 11, 20 @ 9:02 am:

    Liberate that, zealots.


  3. - TheInvisibleMan - Monday, May 11, 20 @ 9:03 am:

    Thanks for bringing attention to this Rich.


  4. - efudd - Monday, May 11, 20 @ 9:06 am:

    Astaves, I love how you try to make it sound as if Pritzker is doing this on a whim, not following the advice of scientists.

    I understand you’re an attorney. You go into court with weak arguments like that?


  5. - Oswego Willy - Monday, May 11, 20 @ 9:07 am:

    Can’t tell me in a global pandemic it’s safe to go to “Appleby’s” when it’s clearly not and expect legal immunity.

    You’re “telling” me it’s safe, there shouldn’t need to be this legal immunity.

    Aren’t these same business folks telling *me* the risk is small?

    They willing to bet on that… legally?

    Oh, before the “open everything” folks or the “trial lawyers sumptin’-sumptin’” folks get riled up, I come at this from the medical;

    Every time a new patient is seen by a doctor or nurse, needlessly, and if it starts to spread again because people can’t live without “TGI Fridays”… they are personally putting at risk… doctors, nurses, first responders as a whole… I have zero time for the needlessly open, especially if their concern is legal immunity.

    Nope. Sorry. No.


  6. - Not a Billionaire - Monday, May 11, 20 @ 9:07 am:

    The average owner of a Restaurant who files a Schedule C makes 20000 a year. For S corps it’s 50000. The money is the real estate owners good suppliers like US Foods or DOT and those who hand out the franchises. Hey the lawyers will really be digging into that chain when the deaths and lawsuits happen.


  7. - Fighter of Foo - Monday, May 11, 20 @ 9:11 am:

    No matter what you may think of this at this point in time. The part that scares business owners, is the lawsuits. These small businesses will be sued out of existence. Never mind that they went to every grocery store and hardware store weekly for the entire time, you will need to defend your lawsuit. It’s a settlement of course. This has been my fear more than the virus as we have been open throughout this time.


  8. - Touré's Latte - Monday, May 11, 20 @ 9:21 am:

    Too many things to freak out about. Can the Governor prioritize what we should be scared of, based on data and science?


  9. - Pundent - Monday, May 11, 20 @ 9:22 am:

    =How’s that for a choice here in Illinois Mr. and Mrs. Small Businesspersons?=

    If only we had the Federal Government taking the lead here. We have a patchwork of state compliance. The guidelines we’re obviously not supported by the President. Testing still isn’t anywhere near adequate and contact tracing is nearly non-existent.

    You can’t reopen the economy without an adequate plan to address the virus. We keep hearing that the economy needs to reopen know but not nearly enough on what’s being done to allow for that.


  10. - Ray Gun - Monday, May 11, 20 @ 9:23 am:

    Insurance Companies, Trial Lawyers, and license issuing government bureaus. Some real beacons of virtue there, all on the front lines of making sure the Constitutions are our nation and states are more than window dressing. Funny how these often bashed companies are being counted on to keep the Governs order in place. Would seem that an order worth issuing would be worth enforcing, martyrs made or not.


  11. - Lucky Pierre - Monday, May 11, 20 @ 9:26 am:

    Democrats always make sure Trial Lawyers and Unions come out on top in Illinois and small businesses continues to get crushed.


  12. - Jocko - Monday, May 11, 20 @ 9:29 am:

    I read earlier today about Trump’s ‘pivot’ from the coronavirus to the economy…as if the inadequacy of testing or tracing will make it go away.


  13. - Nagidam - Monday, May 11, 20 @ 9:32 am:

    I think it would be difficult to prove a contracted case of COVID but as someone said earlier in this post it is more about the defense of the lawsuit that is scary. But your run of the mill lawsuit that every business can face ala Evelyn “Slip & Fall” Sanguinetti has the potential of not being covered.


  14. - First Amdt Lawyer - Monday, May 11, 20 @ 9:35 am:

    Rich, from day one I’ve counseled clients to follow the guidance issued by their insurance companies. That’s good advice.

    The only problem is, the insurance companies are telling their Illinois clients the same thing they are telling their clients in other states that have opened up restaurants. The health guidelines are the same.

    Regarding the additional liability, again, see how these cases are going in states that have opened up or were never closed to begin with. The more contagious this virus is, the more difficult it is to prove that a victim got it from a specific source.

    Now the loss of a business license, that is a real threat. But insurance companies and trial lawyers are not.


  15. - Just Me 2 - Monday, May 11, 20 @ 9:45 am:

    It never ceases to amaze me how business people believe they’re right to be in business is more important than the government’s responsibility to keep its citizens safe from death or a lifetime of reduced lung capacity.


  16. - Louis G Atsaves - Monday, May 11, 20 @ 9:49 am:

    I can appreciate the coming from the medical opinion arguments, but then again, we are still selling alcoholic beverages, cigars and other smokes, including vapes, legal weed, foodstuffs that are not necessary the best to ingest, the list of products that are harmful that can be legally sold is endless, in spite of medical opinions to the contrary. Facts are stubborn things to swallow sometimes.


  17. - Rich Miller - Monday, May 11, 20 @ 9:51 am:

    === The more contagious this virus is, the more difficult it is to prove===

    Not arguing that. But if you’re open illegally and something happens at your place of business, you’re gonna be naked.


  18. - Oswego Willy - Monday, May 11, 20 @ 9:54 am:

    === Facts are stubborn things to swallow sometimes.===

    Oh - Louis G Atsaves -

    Every single state is considered a disaster area, by the federal government. Over 150 countries globally are fighting *this* virus… not lung cancer, the flu, heart disease… it’s this virus that’s closing down… continents.

    You can’t tell me “Outback Steakhouse” should get legal immunity during a crisis so people can sit and get a bloomin’ onion… because “facts are stubborn things”?

    You open, you’re telling me, “hey it’s safe”

    Counselor, are you telling me it’s unsafe to go to restaurants, and they need immunity?

    Hmm.

    Tell that to the doctors and nurses that will, according to report after report globally, see an uptick in cases with more things open.


  19. - Angry Republican - Monday, May 11, 20 @ 9:57 am:

    Drug dealers don’t need business licenses, insurance, or fear lawsuits. Seems like this shutdown is going to be a good opportunity for the black market.


  20. - Demoralized - Monday, May 11, 20 @ 9:59 am:

    ==Democrats always make sure Trial Lawyers and Unions come out on top in Illinois and small businesses continues to get crushed.==

    Yes Lucky because the response to this virus has been limited to Democrats. Not familiar with what is going on in other states. You really are a farce and you are just plain sad.


  21. - Oswego Willy - Monday, May 11, 20 @ 10:00 am:

    === Drug dealers===

    Dunno if comparing plights of entrepreneurs and restaurant owners is the best example in helping them.

    You may wanna rethink your model. “Because drug dealers” isn’t going to sway folks to stop an alleged black market.


  22. - Oswego Willy - Monday, May 11, 20 @ 10:04 am:

    === Democrats always make sure Trial Lawyers and Unions come out on top===

    No. Keep Up.

    Old school Republicans are looking out for doctors, first responders (police and fire) and front line union labor.

    It wasn’t that long ago the Med Society was a GOP staple here in policy.

    Can’t see how more unneeded infections so I can go to “Dave and Busters” is a pro medical community thing.

    But… the trial lawyers and unions are a Raunerite thing, you’re on brand.


  23. - Demoralized - Monday, May 11, 20 @ 10:04 am:

    ==Democrats always make==

    Yeah Lucky because the reponse to this crisis has been nothing but Democrats. No other states in the same situation. You are a piece of work and offer nothing but the same tired hyperpartisan nonsense.


  24. - Jocko - Monday, May 11, 20 @ 10:06 am:

    ==we are still selling alcoholic beverages, cigars and other smokes==

    In establishements that have, at most, eight to ten people in a 1000 sq. ft. place? c’mon.


  25. - Ducky LaMoore - Monday, May 11, 20 @ 10:17 am:

    “Facts are stubborn things to swallow sometimes.”

    Okay, fact; anyone ingesting alcohol, weed, tobacco, and unhealthy food will not accidentally kill me or my family. Fact; corona virus allowed to spread through negligence and incompetence could.


  26. - JoanP - Monday, May 11, 20 @ 10:19 am:

    =the list of products that are harmful that can be legally sold is endless, in spite of medical opinions to the contrary.=

    And when that harm affect people other than those who use those products, they are regulated. That’s why we have laws against drunk driving.

    More to the point, that’s why you cannot smoke in a restaurant or other public places. Because secondhand smoke can affect the health of others. Kind of like if you were, say, the carrier of a virus.


  27. - efudd - Monday, May 11, 20 @ 10:23 am:

    Astaves, again with the Darrow-like opinion.

    Man, you must have to beat the clients off with a stick.


  28. - Anon221 - Monday, May 11, 20 @ 10:50 am:

    “… alcoholic beverages, cigars and other smokes, including vapes, legal weed, foodstuffs that are not necessary the best to ingest…”

    For the thousandth time, none of these items are infectious. And, as JoanP pointed out, have rules and regulations. Would you really use that line of reasoning as a defense in court??? Facts are stubborn things, and an apple ain’t an orange.


  29. - Levois J - Monday, May 11, 20 @ 11:34 am:

    I had been reading this last night actually. I’m not a businessman, but right now I don’t envy people who own a business. Especially a business teetering real close to insolvency thanks to this crisis!


  30. - RIJ - Monday, May 11, 20 @ 11:41 am:

    Putting aside Coronavirus cases, businesses still have a problem. If a business is open against the EO, will they have coverage for accidents in the business? Maybe someone would have a difficult time proving where she picked up the Coronavirus, but not where she slipped and had a head injury.


  31. - Skeptic - Monday, May 11, 20 @ 11:43 am:

    ” small businesses continues to get crushed.” That’s funny, I thought Republicans liked the free market?


  32. - Pundent - Monday, May 11, 20 @ 12:07 pm:

    =Maybe someone would have a difficult time proving where she picked up the Coronavirus, but not where she slipped and had a head injury.=

    When an individual tests positive they’re contacted by the IDPH. One of the things that the IDPH does is attempt to trace where they’ve been and who they’ve come in contact with. This is what we currently refer to as “contact tracing.” It does have its shortfalls. However, if through this contact tracing “restaurant X” emerges as the common denominator it’s not too much of a stretch to believe that individuals would be able to point to the establishment as a likely source. Whether the claim/suit is successful or not is debatable, but you still have to defend it.


  33. - Southern - Monday, May 11, 20 @ 12:08 pm:

    Counselor Atsaves, I respectfully suggest that you take a brief recess, and look up how proof-of-causation applies to mesothelioma and asbestos lawsuits.


  34. - VerySmallRocks - Monday, May 11, 20 @ 1:08 pm:

    I would also add that once the flag and gun fetish mob may crowd your place early on, how many of the “Silent Majority”, who are taking precautions an intelligent eight year old would take, will show up, especially after a bump in COVID infections and attendant hospitalizations and deaths occur in the community, not bug, bad Chicago or Cook County.


  35. - revvedup - Monday, May 11, 20 @ 5:44 pm:

    To: Louis G Atsaves - Monday, May 11, 20 @ 8:53 am:
    “To open, or not to open,
    That is the question.
    Whether it is nobler to suffer
    The slings and arrows of economic collapse,
    Or to die and spread Covid-19….”


Sorry, comments for this post are now closed.


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