NEW YORK REFORMS

Collateral Source Rule Reform: SB 9351 (1986).  Provides for awards to be offset by collateral source payments. 

Frivolous Lawsuit Sanction: SB 9351 (1986).  Provides a penalty of up to $10,000 for anyone who commences a lawsuit that the court determines to be frivolous.

Joint and Several Liability Reform: SB 9391 (1986): N.Y. Civ. Prac. L. & R. §§ 1601-1602.  Bars application of the rule of joint and several liability in the recovery of noneconomic damages from defendants found to be 50% or less at fault.  The reform does not apply to actions where the defendant is found to have acted with reckless disregard of the rights of others, and in actions involving motor vehicle cases, actions involving the release of toxic substances into the environment, intentional torts, contract cases, product liability cases where the manufacturer could not be joined, construction cases, and other specific actions. 

Medical Liability Reform: Collateral Source Rule Reform: N.Y. C.P.L:R § 4545(a).  Permits the admissibility of evidence of collateral source payments in medical liability cases.

Medical Liability Reform: Contingent Fee Reform: N.Y. Jud. Law § 474-a.  Limits contingent fees in medical liability cases by a sliding scale.

Periodic Payment of Future Damages: SB 9391 (1986).: N.Y. C.P.L.R. § 5031.  Mandates periodic payments of future damages exceeding $250,000.  The statute requiring future damage awards in excess of $250,000 in health care liability actions to be paid over time instead of in lump-sum did not violate the due process provision of the State Constitution.  Doe v. State of New York, 189 A.D.2d 199, 595 N.Y.S.2d 592 (N.Y.A.D. 1993).

Punitive Damages Reform: SB 7589 (1992).  Requires that 20% of all punitive damages awards be paid to the New York State General Fund.

Structured Settlement Reform: S. 5697 (2003).  Provides for a fix to the Desiderio decision.  The Desiderio decision resulted from poorly drafted   language of a 1986 law designed to address tort liability and resulted in the double-counting of inflation on judgments against hospitals; in one case a $40 million judgment into an almost $140 million judgment, which was upheld by the New York State’s Court of Appeals.  Other provisions were included that were favorable to the trial bar: accelerated payments to plaintiffs; a provision that allows up to $500,000 in damages for pain and suffering, or 35% of the pain and suffering award, whichever is greater to be awarded as a lump sum, rather than the old limit of $250,000; and a reduction in the time pain and suffering awards are to be paid from 10 years to 8 years.