What's happening
This bill prevents arbitration decisions in certain serious personal injury insurance cases from having collateral estoppel (issue-preclusion) effect in court.
Why it matters
Protects the right to a full court hearing. by ensuring that arbitration decisions in serious personal injury insurance cases do not automatically determine the outcome of related court cases on the same issues, preserving a claimant’s opportunity to present their case anew before a judge or jury.
Prevents unintended legal consequences. for injured parties who choose or are required to arbitrate insurance claims, reducing the risk that an unfavorable or limited arbitration decision could block their ability to pursue further legal action or obtain a different result in court.
Shifts leverage in settlement negotiations. by removing the threat that a single arbitration outcome will bind both parties in future litigation, potentially encouraging fairer negotiations and allowing both insurers and claimants to pursue independent legal strategies in court.
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Who cares
Headline styles
Limit Arbitration Decision Impact
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Arbitration Legal Impact
In Assembly Committee · Insurance · Sponsor Vivian Cook
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5505
2019-2020 Regular Sessions
IN SENATE
May 3, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the collateral estoppel effect of issues decided by certain arbitrators
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 5106 of the insurance law is amended by adding a new subsection (e) to read as follows:
(e) With respect to an action for serious personal injury permissible under section five thousand one hundred four of this article, the award or decision of an arbitrator or master arbitrator rendered pursuant to subsection (c) of this section shall not constitute a collateral estoppel of the issues arbitrated.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08027-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to the collateral estoppel effect of issues decided by certain arbitrators
Purpose
To eliminate the inequities in present law by giving claimants seeking reversal of improper denials of No-Fault benefits prompt resolution of their claims through arbitration.
Summary of provisions
Amends section 5106 of the insurance law by adding a new subsection (d) to provide that, with respect to an action for serious personal injury permissible under section 5104, an award or decision by an arbitrator pursuant to a No-Fault proceeding would not constitute a collateral estoppel of the issues arbitrated, but such an award or decision may be admissible as relevant evidence by a party to an action.
Justification
The bill would give claimants seeking reversal of improper denials the benefit of prompt resolution of their claims through arbitration. Under the present law, when a claimant is denied No-Fault benefits by their insurance carrier based upon an insurer's medical examination or other contractual justification, the attorney representing that claimant in a third-party action for pain and suffering is extremely reluctant to submit that denial to arbitration pursuant to Section 5106 of the Insur- ance Law because an adverse decision would probably result in the colla- teral estoppel of the issues arbitrated. Often, this results in extin- guishing the third party claim entirely. Because of these consequences, many claimants are placed in an insoluble dilemma: either delay neces- sary medical treatment further exacerbating their medical condition, or risk an adverse determination in arbitration that will nullify their third party case.
Legislative history
Previously introduced. 2017/18 -A.3533
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.