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New York General Obligations - Title 3 - § 5-335 Limitation of Non-statutory Reimbursement and Subrogation Claims in Personal Injury and Wrongful Death Actions

Legal Research Home > New York Laws > New York General Obligations (GOB) > New York General Obligations - Title 3 - § 5-335 Limitation of Non-statutory Reimbursement and Subrogation Claims in Personal Injury and Wrongful Death Actions

 
    §  5-335.  Limitation  of  non-statutory reimbursement and subrogation
  claims in personal  injury  and  wrongful  death  actions.  (a)  When  a
  plaintiff  settles with one or more defendants in an action for personal
  injuries, medical, dental, or podiatric malpractice, or wrongful  death,
  it  shall  be conclusively presumed that the settlement does not include
  any compensation for the cost of health care services, loss of  earnings
  or  other economic loss to the extent those losses or expenses have been
  or are obligated to be paid or reimbursed by a benefit provider,  except
  for   those  payments  as  to  which  there  is  a  statutory  right  of
  reimbursement. By entering into any such settlement, a  plaintiff  shall
  not  be deemed to have taken an action in derogation of any nonstatutory
  right of any benefit provider that paid or is  obligated  to  pay  those
  losses  or  expenses; nor shall a plaintiff's entry into such settlement
  constitute a violation of any contract between the  plaintiff  and  such
  benefit provider.
    Except  where  there  is  a statutory right of reimbursement, no party
  entering into such a settlement shall be subject to a subrogation  claim
  or  claim for reimbursement by a benefit provider and a benefit provider
  shall have no lien or right of subrogation or reimbursement against  any
  such  settling party, with respect to those losses or expenses that have
  been or are obligated to be paid or reimbursed by said benefit provider.
    (b) This section shall not apply to a subrogation claim  for  recovery
  of   additional   first-party  benefits  provided  pursuant  to  article
  fifty-one  of  the  insurance  law.  The  term  "additional  first-party
  benefits",  as  used  in  this  subdivision, shall have the same meaning
  given it in  section  65-1.3  of  title  11  of  the  codes,  rules  and
  regulations  of  the  state of New York as of the effective date of this
  statute.

Last modified: February 16, 2012