2023 New York Laws › EXC - Executive › Article 22 - Office of Victim Services › 634 - Subrogation.

§ 634. Subrogation.  1.  (a)  Acceptance  of an award made pursuant to
this article shall subrogate the state, to the extent of such award,  to
any  right  or right of action accruing to the claimant or the victim to
recover payments on account of losses  resulting  from  the  crime  with
respect  to  which  the award is made. Upon the payment of an award, the
office may, by writing, notify  the  claimant  that  such  claimant  has
ninety  days,  or  thirty  days  prior  to the date of expiration of the
applicable statute of limitations, whichever period is  shorter,  within
which  to  commence  an  action against his assailant or any third party
who, as a result of the crime, may be liable in damages to the claimant.
If the claimant fails to commence an action  within  the  time  provided
herein,  such failure shall, after written notification by the office to
the claimant, operate as an assignment of the claimant's cause of action
against the assailant or such other third party to the state;  provided,
however,  that  should the claimant's cause of action be in an amount in
excess of the office's award, such assignment shall  be  for  only  that
portion of the cause of action which equals the amount of the award.
(b)  The office of victim services shall review those claims that have
been approved by the office and that have resulted in an award in excess
of one thousand dollars for the purpose of identifying those  causes  of
action  that  are likely to result in recovery of the state's payment to
the victim. The office shall submit a list of these claims on a  monthly
basis to the attorney general with all necessary information relating to
the  case  including  whether  the  claimant's  cause of action has been
assigned to the office.
(c) The attorney general may commence an action against the  defendant
convicted of the crime or third party for money damages to the extent of
the award paid, and the claimant shall retain a right of action, subject
to  defenses, to recover damages for the full amount of loss incurred by
him as a result of the crime less the amount assigned to  the  state  by
operation  of  this  subdivision. Notwithstanding any other provision of
law, an  action  brought  by  the  attorney  general  pursuant  to  this
paragraph against the defendant convicted of the crime must be commenced
within  seven  years  of  the  crime  or  pursuant  to  the  time frames
authorized in subdivision three of section six hundred  thirty-two-a  of
this  article.  A  claimant  who  retains  such right of action shall be
permitted  to  intervene  in  any  action  brought  pursuant   to   this
subdivision  by the attorney general. Any action brought by the attorney
general may be compromised or settled provided the attorney general  and
the office find that such action is in the best interests of the state.
2. Acceptance of an award made pursuant to this article shall create a
lien  in  favor  of  the  state on the proceeds of any recovery from the
person or persons liable for the injury or  death  giving  rise  to  the
award by the office, whether by judgment, settlement or otherwise, after
the  deduction  of  the reasonable and necessary expenditures, including
attorney's fees, incurred in  effecting  such  recovery,  to  the  total
amount  of  the  award made by the office. Such lien shall attach to any
moneys received or to be received by the claimant or victim  on  account
of losses resulting from the crime. Should the claimant or victim secure
a  recovery  from  the  person or persons liable for the injury or death
giving rise to the award by the office, whether by judgment,  settlement
or otherwise, such claimant may, upon notice to the office, apply to the
court  in  which the action was instituted, or to any court of competent
jurisdiction if no action was instituted, for an order apportioning  the
reasonable   and  necessary  expenditures,  including  attorney's  fees,
incurred  in  effecting  such  recovery.  Such  expenditures  shall   be
equitably  apportioned by the court between the claimant and the office.
A copy of such lien shall be mailed to the clerk of  the  county  within

which the crime occurred and such clerk will file the copy in accordance
with  the  duties  of  such  clerk  as set forth in section five hundred
twenty-five  of  the  county  law.  The  amount  of  such  lien  may  be
compromised or settled by the office provided the office finds that such
action  is  in  the  best interests of the state, or payment of the full
amount of the lien to the state  would  cause  undue  hardship  for  the
victim.
2-a.  To  the  extent  the  office  has made an award pursuant to this
article for burial expenses,  such  amount  shall  be  considered  among
reasonable  funeral expenses of the decedent pursuant to subdivision one
of section eighteen hundred eleven of the  surrogate's  court  procedure
act,  to  be  recovered  by  the  office,  provided,  however, that if a
beneficiary of the victim's estate is also a person eligible to  receive
an  award  pursuant  to section six hundred twenty-four of this article,
the office shall recover such amounts pursuant  to  subdivision  two  of
this  section to the extent an award has been made to such person, prior
to pursuing recovery from the  victim's  estate.  Any  recovery  from  a
victim's  estate  under  this  subdivision shall reduce the state's lien
under this section to the extent of the recovery by the office.
3. Any claimant who has received an award under this article,  or  his
guardian,  judicially  appointed personal representative, or his estate,
who brings an action for damages against the person  or  persons  liable
for the injury or death giving rise to an award by the office under this
article  shall  give written notice to the office of the commencement of
such action at the time such action is commenced. Such notice  shall  be
served personally or by certified mail, return receipt requested.
4. The attorney general may intervene, as of right, in any such action
on  behalf  of  the  state of New York for the purpose of recovering the
subrogated interest due the state of New York under  the  provisions  of
this article.
5.  The  director  shall  adopt rules and regulations to carry out the
provisions and purposes of this section.
6. The office  shall  compile  information  on  the  number  of  cases
submitted  to  the attorney general, the number of actions instituted by
the attorney general to recover payments  made  to  crime  victims,  the
dollar  amount  of recoveries made in such actions both on behalf of the
state and any awards made to victims who intervene in such actions.  The
office  shall  include  this information, and any recommendations to the
governor and legislature to improve the collection  of  awards,  in  its
annual report.