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NWCDN is a network of law firms dedicated to protecting employers in workers’ compensation claims.
NWCDN Members regularly post articles and summary judgements in workers’ compensations law in your state.
Select a state from the dropdown menu below to scroll through the state specific archives for updates and opinions on various workers’ compensation laws in your state.
Contact information for NWCDN members is also located on the state specific links in the event you have additional questions or your company is seeking a workers’ compensation lawyer in your state.
H&W New York Workers' Compensation Defense Newsletter
Court of Appeals Closes Section 25-a Fund in American Economy Decision
In a 32-page unanimous decision issued yesterday (10/24/17), the Court of Appeals (New York’s highest court) closed the Section 25-a fund by reversing the Appellate Division, First Department’s 2016 decision inAmerican Economy v. State of New York, 139 A.D.3d 138 (1st Dept. 2016). The Court, in a decision authored by Judge Eugene Fahey, was unconvinced by the constitutional arguments raised by the dozens of insurance carrier plaintiffs and found that the closure of the 25-a fund, despite its retroactive impact which imposed unfunded costs upon those plaintiffs, was nevertheless constitutionally permissible.
While technically the plaintiffs may have a right to petition the U.S. Supreme Court for relief, we view success on such a petition to be highly unlikely. Accordingly, the hope of transferring any cases on which applications for 25-a relief were not made before 1/1/14 is now lost. Carriers can expect that the Board will dismiss any pending requests for transfer of claims to the 25-a fund. The Board had previously held in abeyance applications for transfer of claims to the 25-a fund during the pendency of this appeal.
Those interested in reviewing the specifics of the Court’s reasoning are welcome to review the decision by clicking on this link. Please do not hesitate to contact any ofour attorneys to discuss the decision and its impact on your claims.
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Hamberger & Weiss - Rochester Office
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