Chamber Calls for Teamwork in Rebuilding Gulf Coast

Highlights Legislative Options and Warns About Litigation Abuse

WASHINGTON, D.C.—U.S. Chamber of Commerce President and CEO Thomas Donohue today called for teamwork among the public and private sectors in response to hurricanes Katrina and Rita and warned that a rash of lawsuits could delay recovery and rebuilding for storm survivors.

"A tragedy of this magnitude requires cooperation from the entire nation to successfully rebuild the communities that were destroyed," said Donohue. "The business community is united to quickly help our fellow citizens recover from this catastrophe, however, frivolous lawsuits will only divert attention from the enormous task of rebuilding the region."

The Chamber's Center for Corporate Citizenship (CCC) has spearheaded the business community's disaster response. Total business contributions have approached $1 billion and the Chamber continues to help match specific needs of communities with companies and chambers nationwide. This includes Web sites that have been created with specific tools to help small business get back online.

Hurricane-related litigation has been filed or is being contemplated across the region, according to the Chamber. Mississippi Attorney General Jim Hood has filed a lawsuit against insurers, seeking to have the flood exclusion clauses in their contracts voided as a matter of public policy. A similar class action suit was filed against insurers in Louisiana. Oil producers and refiners are being targeted by plaintiffs' lawyers who seek to hold them accountable for damage caused by the hurricanes. One lawsuit even charges that Gulf Coast oil companies are responsible for global warming.

The Chamber has backed three legislative initiatives to help the rebuilding effort. The first two are the Katrina Volunteer Protection Act and the GIVE Act; both would grant volunteers immunity from liability for injuries resulting from aid provided to hurricane victims. The third piece of legislation is the Gulf Coast Recovery Act, which would allow the federal government to limit lawsuits arising out of the rescue, recovery, repair or reconstruction efforts following Katrina.

The U.S. Chamber is the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region.

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