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...
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