The Law Offices of Curtis, Vasile P.C.
Roy W. Vasile, Michael G. Mehary, Dominick A. Piccininni & Michael J. Dorry
RECENT LAW

               
DISCLAIMER: To the extent that this website may discuss law or legal cases, this is being provided for informational purposes only and is not intended to constitute legal advice or create an attorney-client relationship.                

                              
            

NON-STATUTORY “LIENS” NO LONGER CAN BE ASSERTED AGAINST SETTLEMENTS

NEW YORK’S GENERAL OBLIGATIONS LAW  5 - 335 - UPDATED

As passed in 2009, New York's General Obligations Law

This new law does not apply to a statutory right of reimbursement (such as Workers Compensation, ERISA, APIP or Medicare). Now, there is a conclusive presumption that settlement money paid in a personal injury or wrongful death action does not include compensation for the losses or expenses that were or will be paid by benefit providers, except those with a statutory right of reimbursement. This law was passed in November, 2009 and is effective immediately. Apparently, the provider may still be able to commence their own action to recover their benefits paid because the law speaks in terms of obtaining a recovery from a "settlement."

Moreover, a plaintiff in a personal injury or wrongful death action who settles with one or more of the defendants in the action will not be charged with violating any non-statutory right of a benefit provider or the provisions of any contract between the plaintiff and a benefit provider. Also, except for those payments made by a benefit provider for which there is a statutory right of reimbursement, no party that enters into such a settlement can be subject to any benefit provider’s claim for reimbursement or subrogation.

§ 

 there is a conclusive presumption that settlement money paid in a personal injury or wrongful death action does not include compensation for the losses or expenses that were or will be paid by benefit providers, except those with a statutory right of reimbursement. This law was passed in November, 2009 and is effective immediately. Apparently, the provider may still be able to commence their own action to recover their benefits paid because the law speaks in terms of obtaining a recovery from a "settlement."

Moreover, a plaintiff in a personal injury or wrongful death action who settles with one or more of the defendants in the action will not be charged with violating any non-statutory right of a benefit provider or the provisions of any contract between the plaintiff and a benefit provider. Also, except for those payments made by a benefit provider for which there is a statutory right of reimbursement, no party that enters into such a settlement can be subject to any benefit provider’s claim for reimbursement or subrogation.

In November 2013, New York's General Obligations Law was amended with § 5-101 (4.) which reads: "As used in section 5-335 of this article, the term "benefit provider" means any insurer, health maintenance organization, health benefit plan, preferred provider organization, employee benefit plan or other entity which provides for payment or reimbursement of health care expenses, health care services, disability payments, lost wage payments or any other benefits under a policy of insurance or contract with an individual or group.
 


 

                                    

                                            NEW YORK ABROGATES INSURERS’ “LATE NOTICE”

                                                        DEFENSE ABSENT MATERIAL PREJUDICE

 

Effective January, 2009, New York’s Insurance Law §3420 has been amended. Insurers cannot deny coverage for “late notice” of a claim unless the insurer demonstrates “material prejudice.” The law also permits injured claimants to bring an early declaratory judgment action to determine the existence of insurance coverage where the issue is late notice.

 

 

 

 

 

 

 





 




Website Builder