N.Y. Gen. Oblig. Law § 5-335 Limitation of Reimbursement and Subrogation Claims In Personal Injury and Wrongful Death Actions

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 777
• Year: 2023
• Citation: N.Y. Gen. Oblig. Law § 5-335

(a) When a [plain- tiff] person settles [with] a claim, whether in litigation or otherwise, against one or more [defendants in an action] other persons 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 reimburse- ment] an insurer. By entering into any such settlement, a [plaintiff] person shall not be deemed to have taken an action in derogation of any [nonstatutory] right of any [benefit provider] insurer that paid or is obligated to pay those losses or expenses; nor shall a [plaintiff's] person's entry into such settlement constitute a violation of any contract between the [plaintiff] person and such [benefit provider] insurer.

[Except where there is a statutory right of reimbursement, no party] No person entering into such a settlement shall be subject to a subrogation claim or claim for reimbursement by [a benefit provider] an insurer and [a benefit provider] an insurer shall have no lien or right of subrogation or reimbursement against any such settling [party] person or any other party to such a settlement, with respect to those losses or expenses that have been or are obligated to be paid or reimbursed by said [benefit provider] insurer.