New York Workers' Compensation Code § 29

Remedies of employees; subrogation
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§ 29. Remedies of employees; subrogation. 1. If an employee entitled\nto compensation under this chapter be injured or killed by the\nnegligence or wrong of another not in the same employ, such injured\nemployee, or in case of death, his dependents, need not elect whether to\ntake compensation and medical benefits under this chapter or to pursue\nhis remedy against such other but may take such compensation and medical\nbenefits and at any time either prior thereto or within six months after\nthe awarding of compensation or within nine months after the enactment\nof a law or laws creating, establishing or affording a new or additional\nremedy or remedies, pursue his remedy against such other subject to the\nprovisions of this chapter. If such injured employee, or in case of\ndeath, his dependents, take or intend to take compensation, and medical\nbenefits in the case of an employee, under this chapter and desire to\nbring action against such other, such action must be commenced not later\nthan six months after the awarding of compensation or not later than\nnine months after the enactment of such law or laws creating,\nestablishing or affording a new or additional remedy or remedies and in\nany event before the expiration of one year from the date such action\naccrues. In such case, the state insurance fund, if compensation be\npayable therefrom, and otherwise the person, association, corporation or\ninsurance carrier liable for the payment of such compensation, as the\ncase may be, shall have a lien on the proceeds of any recovery from such\nother, whether by judgment, settlement or otherwise, after the deduction\nof the reasonable and necessary expenditures, including attorney's fees,\nincurred in effecting such recovery, to the extent of the total amount\nof compensation awarded under or provided or estimated by this chapter\nfor such case and the expenses for medical treatment paid or to be paid\nby it and to such extent such recovery shall be deemed for the benefit\nof such fund, person, association, corporation or carrier. Should the\nemployee or his dependents secure a recovery from such other, whether by\njudgment, settlement or otherwise, such employee or dependents may apply\non notice to such lienor to the court in which the third party action\nwas instituted, or to a court of competent jurisdiction if no action was\ninstituted, for an order apportioning the reasonable and necessary\nexpenditures, including attorneys' fees, incurred in effecting such\nrecovery. Such expenditures shall be equitably apportioned by the court\nbetween the employee or his dependents and the lienor. Notice of the\ncommencement of such action shall be given within thirty days thereafter\nto the chairman, the employer and the insurance carrier upon a form\nprescribed by the chairman. Any of the foregoing providers of\ncompensation and/or medical benefits which has recovered a lien pursuant\nto the provisions hereof against the recovery of a person injured on or\nafter February first, nineteen hundred seventy-four and before July\nfirst, nineteen hundred seventy-eight, through the use or operation of a\nmotor vehicle in this state, shall notify such person by certified mail\nin a manner to be approved by the chairman and the superintendent of\nfinancial services of the responsibility of an "insurer" (as defined in\nsubsection (g) of section five thousand one hundred two of the insurance\nlaw), to reimburse such person under such circumstances to the extent\nthat the recovered lien represent first party benefits as defined in\narticle fifty-one of the insurance law.\n  1-a. Notwithstanding any other provision of this chapter, the state\ninsurance fund, if compensation and/or medical benefits be payable\ntherefrom, or otherwise the person, association, corporation, insurance\ncarrier or statutory fund liable for the payment of such compensation\nand/or medical benefits shall not have a lien on the proceeds of any\nrecovery received pursuant to 

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