THE NEWLY REOPENED FUND FOR REOPENED CASES – THE FIRST DEPARTMENT DECLARES THE RETROACTIVE APPLICATION OF 25-A UNCONSTITUTIONAL!
Yesterday, in a dramatic reversal, the First Department declared retroactive application of the sunsetting of the Fund for Reopened Cases created under WCL 25-a unconstitutional under both the US and New York Constitutions.
In the declaratory judgment action brought by plaintiff insurers, the First Department found that because premiums prior to 10/1/13, when the Department of Financial Services authorized an increase in the amount that insurers could charge in light of the closing of the Fund for Reopened Cases, were calculated based on the availability of funds from the Fund for Reopened Cases, elimination of insurers’ right to seek reimbursement from the fund was an unconstitutional taking under the US and New York Constitutions and violated the Contracts Clause of the US Constitution.
The Fund for Reopened Cases is reopen again.
Contact us to discuss how we can use this information to your advantage!!! We have three former Special Funds attorneys on staff and our entire team is itching to see how we can use this to your advantage!