Vinson v. Berkowitz
Plaintiff Willie Vinson sustained serious injuries, including an amputation, after being struck by a motor vehicle during employment and began receiving workers' compensation benefits from Hartford Insurance Company. Vinson filed a lawsuit against the tort-feasor defendants, Berkowitz, seeking to settle his claim for $25,000 (netting $16,294.54) while preserving his full workers' compensation benefits. Although Hartford Insurance Company had no lien due to recent legislative amendments, it sought to suspend future benefits until the settlement amount was exhausted. The Special Term initially ruled in favor of Vinson, denying Hartford's offset claim. However, the appellate court modified the decision, directing that the suspension of Vinson's workers' compensation benefits would only occur after the aggregate of such benefits reached $50,000, and then only until the $16,294.54 settlement amount was exhausted, otherwise affirming the original order.