senate Bill S5715A

Signed By Governor
2013-2014 Legislative Session

Protects the parties to a tort settlement from any claims by an insurer

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Archive: Last Bill Status Via A7828 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

view actions (12)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 13, 2013 signed chap.516
Nov 01, 2013 delivered to governor
Jun 21, 2013 returned to assembly
passed senate
3rd reading cal.1619
substituted for s5715a
Jun 21, 2013 substituted by a7828a
ordered to third reading cal.1619
committee discharged and committed to rules
Jun 17, 2013 print number 5715a
amend and recommit to judiciary
Jun 07, 2013 referred to judiciary

S5715 - Details

See Assembly Version of this Bill:
A7828A
Law Section:
General Obligations Law
Laws Affected:
Amd §§5-101 & 5-335, Gen Ob L

S5715 - Summary

Protects the parties to a tort settlement from any claims by an insurer.

S5715 - Sponsor Memo

S5715 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5715

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 7, 2013
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation  to  protecting
  parties  to  the  settlement  of a tort claim from certain unwarranted
  lien, reimbursement and subrogation claims

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative intent. The legislature finds that the resol-
ution and settlement of certain types of claims have been impeded  as  a
result  of  health  insurers'  attempts  to intervene into pending liti-
gation, as  well  as  similar  attempts  to  institute  subrogation  and
reimbursement  actions  against  litigants.  As  a result, settlement of
claims made by accident victims and others are imperiled and  prevented,
thus causing undue burdens and pressures upon the court system. In addi-
tion,  defendants  in such actions are being subjected to claims made by
health insurers, exposing them to additional liability.
  Chapter 494 of the laws of 2009 was enacted to add a new subdivision 4
to section 5-101 of the general obligations law and to add a new section
5-335 of the general obligations law "in relation to protecting  parties
to  the  settlement  of  a  tort  claim  from  certain unwarranted lien,
reimbursement and subrogation claims".  However, one federal court,  the
United  States  District  Court for the Eastern District of New York, in
Wurtz v. Rawlings Co., LLC, 2013 WL1248631 (E.D.N.Y), has held that this
legislation was preempted to  the  extent  it  applies  to  any  insured
employee benefit plan covered by the Employee Retirement Income Security
Act of 1974, as amended (ERISA).  The instant legislation is intended to
make  clear  the  original  purpose  of  sections 5-101 and 5-335 of the
general obligations law which is to ensure that  insurers  will  not  be
able  to  claim  or access any monies paid in settlement of a tort claim
whether by way of a lien, a reimbursement claim, subrogation, or  other-
wise  so that the burden of payment for health care services, disability
payments, lost wage payments or any other benefits for  the  victims  of
torts  will be borne by the insurer and not any party to a settlement of
such a victim's tort claim.  This law is  specifically  directed  toward

S5715A (ACTIVE) - Details

See Assembly Version of this Bill:
A7828A
Law Section:
General Obligations Law
Laws Affected:
Amd §§5-101 & 5-335, Gen Ob L

S5715A (ACTIVE) - Summary

Protects the parties to a tort settlement from any claims by an insurer.

S5715A (ACTIVE) - Sponsor Memo

S5715A (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5715--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 7, 2013
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to amend the general obligations law, in relation to protecting
  parties to the settlement of a tort  claim  from  certain  unwarranted
  lien, reimbursement and subrogation claims

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds that  the  resol-
ution  and  settlement of certain types of claims have been impeded as a
result of health insurers' attempts  to  intervene  into  pending  liti-
gation,  as  well  as  similar  attempts  to  institute  subrogation and
reimbursement actions against litigants.  As  a  result,  settlement  of
claims  made by accident victims and others are imperiled and prevented,
thus causing undue burdens and pressures upon the court system. In addi-
tion, defendants in such actions are being subjected to claims  made  by
health insurers, exposing them to additional liability.
  Chapter 494 of the laws of 2009 was enacted to add a new subdivision 4
to section 5-101 of the general obligations law and to add a new section
5-335  of the general obligations law "in relation to protecting parties
to the settlement  of  a  tort  claim  from  certain  unwarranted  lien,
reimbursement  and subrogation claims".  However, one federal court, the
United States District Court for the Eastern District of  New  York,  in
Wurtz v. Rawlings Co., LLC, 2013 WL1248631 (E.D.N.Y), has held that this
legislation  was  preempted  to  the  extent  it  applies to any insured
employee benefit plan covered by the Employee Retirement Income Security
Act of 1974, as amended (ERISA).  The instant legislation is intended to
make clear the original purpose of  sections  5-101  and  5-335  of  the
general  obligations  law  which  is to ensure that insurers will not be
able to claim or access any monies paid in settlement of  a  tort  claim

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11329-04-3

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