May 4, 2016
The purpose of this Subject Number is to provide guidance to interested stakeholders with respect to the decision of the Appellate Division, First Department, in American Economy Insurance Company et al, v State of New York et al. 2016 N.Y. Slip Op. 02924 (Apr. 14, 2016) (American Economy).
Respectfully, the New York State Workers' Compensation Board (Board) believes that the decision in American Economy was legally incorrect and has filed its notice of appeal as of right to the Court of Appeals. Pursuant to the provisions of CPLR §5519(a)(1), the Board's appeal effects a stay of the lower court's decision. As such, the Board will not adjudicate any applications for transfer of claims liability to the Reopened Case Fund (RCF).
Rather, the Board will accept, but hold in abeyance, any and all applications for transfer of claim liability to the RCF, including Requests for Further Action by Carrier/Employer forms (Form RFA-2) and notations on the record, pending further guidance on this issue from the Court of Appeals.
Robert E. Beloten