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Governor Cuomo Signs Into Law Anti-Subrogation Bill, Amending NYS GOB §5-335

  • Precision
  • November 13th, 2013

There is some important news out of Albany: yesterday Governor Cuomo signed a bill (S5715A; A7828) amending the New York anti-subrogation law (General Obligations Law § 5-335). The new law, sponsored by NYS Assemblywoman Helene Weinstein (A.7828) and State Senator John Bonacic (S.5715),is aimed to eliminate the holding of the case of Wurtz v. Rawlings Co., LLC, 2013 WL1248631 (E.D.N.Y. 2013), which held that §5-335 was preempted as it applies to insured employee benefit plans under ERISA.The legislative intent from the bill is quite clear:

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. 

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Governor Cuomo Signs Into Law Anti-Subrogation Bill, Amending NYS GOB §5-335
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