LEGISLATIVE ALERT: Ask Your Representative to Cosponsor the Innocent Sellers Fairness Act (H.R. 1199)

The Innocent Sellers Fairness Act (H.R. 1199) was reintroduced by Rep. Blake Farenthold (R-TX) on March 2, and would reduce the instances where lumber dealers, and other retailers, are subject to unfair and unfounded product liability lawsuits. NLBMDA has led the charge on this issue.

These abusive lawsuits are a burden on our nation's small businesses, often hindering their ability to do business. Currently the average legal costs ensued by building suppliers with $1 million in annual sales top $17,000 per year, costs that are ultimately passed on to the consumer, driving up the cost of homebuilding.

The Innocent Sellers Fairness Act (ISFA) would protect sellers from the predatory lawsuits that have plagued the building supply industry by removing the liability from sellers if they merely supplied the product and had no part in its manufacturing.

KEY POINTS FOR H.R. 1199:

A federal solution is important to ensure uniformity for suppliers. Since 1986, some states have passed product liability laws that include limits to liability for product sellers, but a federal solution is important to ensure uniformity for suppliers who often operate in multiple states.
The Innocent Sellers Fairness Act frees sellers from liability who have done nothing wrong. The legislation holds sellers responsible in proportion to their wrongdoing.
Retailers should not be held liable for merely selling a product. Retailers, such as lumber dealers, who have nothing to do with the design, manufacture, sale, or installation of a legal product, should not be held liable for a product defect.
Sellers should be held responsible only for the harm that their negligence causes. A seller who is negligent with respect to certain, specific non-sale activities (manufacturing, installation, etc.) should be held responsible.
Small businesses need protected from unwarranted product liability lawsuits. According to the U.S. Chamber Institute for Legal Reform, lawsuits cost small businesses $105.4 billion annually.
Business groups support the legislation. In addition to NLBMDA, it is supported by groups such as the National Association of Wholesaler-Distributors, National Federation of Independent Business, National Retail Federation and the U.S. Chamber of Commerce.

TWO WAYS TO ACT:

Call Your Representative at 202-224-3121 or
Write your Representative at NLBMDA's Legislative Action Center.

If you have any questions or feedback on this issue, please email Ben Gann at ben@dealer.org.

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The National Lumber and Building Material Dealers Association (NLBMDA) represents its members in the national public policy arena, with emphasis on efforts to 1) promote the industry and educate legislators and public policy personnel; and 2) assist legislative, regulatory, standard-setting and other government or private bodies in the development of laws, regulations and policies affecting lumber and building material dealers, its customers and suppliers. Founded in 1917, the association has over 6,000 members operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial. www.dealer.org.