New York, N.Y. (June 13, 2022) - The New York State Legislature recently passed the "Justice for Injured Workers Act," which is pending presentation to the governor for signature and would amend the state's Workers Compensation Law. Introduced by Senator Gounardes and Assemblywoman Latoya Joyner, the Act adds a new Section, 118-a, to the Workers Compensation Law that eliminates the collateral estoppel effect of workers' compensation board decisions in any other action arising out of the same accident on which the claim is based. The only exception where collateral estoppel will remain, if the amendment takes effect, will be the determination of an injured workers' employee/employer relationship with an entity.
Under current law, determinations by a workers' compensation board of issues such as whether an accident occurred as claimed or that an injury is not causally related to an accident can be used in subsequent actions or lawsuits related to the same accident alleging violations of the New York Labor Law to seek to strike portions of the bill of particulars for unrelated injuries and even dismissal of entire claims where the board found that the accident did not happen. This was possible because the decisions of the board were entitled to collateral estoppel effect in other proceedings. Passage of the new Section 118-a will have a significant impact on the ability of defense counsel to limit a plaintiff's claims and allegations in subsequent civil actions and will essentially permit plaintiffs to have a chance to obtain a favorable outcome in a lawsuit even where the workers' compensation board has already denied or dismissed part or all of his/her claims as unrelated or as not having happened.
This amendment follows a trend of plaintiff-friendly legislation recently passed by the New York State Assembly and Senate and signed into law by Governor Hochul. Though this amendment has passed in the legislature, it has not yet proceeded to the governor, who has the authority to veto the bill or sign it into law. If signed, the Act will take effect immediately and apply in all existing and future cases.
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