New York Civil Law

Governor Announces Funding to Fight Auto Theft and Insurance Fraud

New York Governor, George E. Pataki, announced earlier this week $4.3 million in grants to combat against automobile theft and insurance fraud in New York. Insurance fraud has certainly cost New Yorkers higher premiums. For example, New York has experienced a dramatic increase in the costs of medical no-fault claims. Recently, four psychotherapists were charged with over-billing insurance carriers for services provided to patients or submitted bills for services that were never rendered.

New York passenger and commercial vehicles can expect to see a $5 fee added to their automobile insurance premiums.

Blink And You'll Miss Court's Reference to an Important Jurisdictional Rule

In a rare public allusion to the Court's jurisdictional complexities, the Court of Appeals, in a recent decision this week, referenced an exeception to the New York Constitution's finality rule. The New York Constitution (article VI, 3[1] and [2]) mandates only final orders are appealable to the Court of Appeals except in very limited circumstances. However, one of the exceptions to the finality rule is party finality. Party finality exists in any order that fully disposes of that party's claims and all claims, including cross claims and third-party claims against that party, without resolving the entire litigation. Footnote 1 in the case explains that even though claims remained pending as to the other defendants in the action, all claims and cross claims asserted by or against the defendant insurer Royal Insurance Company had been dismissed. This footnote is a direct reference to the party-finality exception.

AIA Weighs in on Workers' Compensation Bill

The American Insurance Association also criticizes Assembly Bill A. 9736 (see Feb. 24, 2004 post). The AIA lists the numerous proposals in the bill that will likely increase workers' insurance premiums for New York employees by 25 percent.

New York Assembly Committee Reviews Bill that Will Increase Workers' Compensation Premiums

The New York Assembly recently reviewed a bill that some experts claim will increase workers' compensation premiums by at least 25% for companies doing business in New York. The bill would increase the maximum benefits payable for injured workers. This bill is good for workers, but is it good for the current New York economy?

Limitations Period for Subrogation Action Accrues When Accident Occurs

The Court of Appeals recently held that an insurer's subrogation cause of action accrued when the underlying automobile accident occured -- even where the insurer's right to subrogation was triggered three years after the accident occurred. This is Judge Robert S. Smith's first written decision at the Court. The holding seems to encourage insurers to file preemptive claims of subrogation, thereby flooding the courts with subrogation claims that, in most instances, will never accrue.