Section 118-A of the Worker's Compensation law went into effect on Dec. 30, 2022. It eliminates the collateral estoppel effect of a workers' compensation board decision in any other action involving the same subject matter that has a prior determination from an administrative board. The exception provided is only for a determination of the existence of an employer/employee relationship.

Relevant Background

On Sept. 15, 2021, the Second Department held in Lennon v. 56th & Park NY Owner, LLC that a plaintiff's claim may be barred by the doctrine of collateral estoppel when there is a prior determination from an administrative board involving the same subject matter. Lennon v. 56th & Park NY Owner, LLC, 153 N.Y.S.3d 535, 538 (2d Dept. 2021).

Collateral estoppel, also known as issue preclusion, "precludes a party from relitigating in a subsequent action or proceeding an issue clearly raised in a prior action or proceeding and decided against that party or those in privity." Id. at 540 (collateral estoppel prevents a party from re-litigating a specific issue that has already been decided even if the party is raising the issue in a different type of case). The court held that a determination on an issue before a workers' compensation board could be used in subsequent actions or lawsuits related to the same accident.