Comptroller Stringer Releases New York City Claims Report for FY 2020

 

In FY 2020, 13,741 claims and lawsuits against New York City were resolved for $1.03 billion compared to 14,267 claims and lawsuits resolved for $996.5 million in FY 2019

 Today, New York City Comptroller Scott M. Stringer released the Annual Claims Report, covering data for Fiscal Year (FY) 2020. The Claims Report includes breakdowns of personal injury and property damage claims as well as non-tort claims filed against the City and settlement costs paid by the City in the past fiscal year.

“The pandemic took an unimaginable toll on our neighbors and loved ones, small businesses, and the way we all work and live. Protecting and strengthening the City’s fiscal health is now more important than ever to make a strong economic recovery,” said Comptroller Stringer. “That’s why my office continues to use a data-driven approach to reduce claim costs and work closely with City agencies to manage risk. This work ensures that taxpayer dollars are directed to resources for New Yorkers who need our help most as we build back our economy and our city even stronger than before.”

In FY 2020, 13,741 claims and lawsuits against New York City were resolved for $1.03 billion compared to 14,267 claims and lawsuits resolved for $996.5 million in FY 2019.

Total Number of Claim Settlements & Judgments FY 2019 vs. FY 2020

Total Amount of Claim Settlements & Judgments Paid FY 2019 vs. FY 2020

Tort Claims

For the third fiscal year, FY 2020 saw a decline in the City’s payouts on personal injury and property damage claims (collectively, tort claims), which include allegations of slip and falls, medical malpractice, police action, and motor vehicle property damage claims. The number of tort claims filed in FY 2020 decreased by 11 percent and the amount paid out in settlements and judgments in FY 2020 decreased by 14 percent. Yet, New Yorkers continue to pay for claims that were filed more than a decade ago.

• In FY 2020, the City paid out $545.8 million in tort claims, $87.5 million less than the $633.3 million paid out in FY 2019.
• In FY 2020, the City paid out $60.2 million for personal injury tort claims that were filed prior to FY 2011 (legacy claims).
• Excluding payments on legacy claims, personal injury tort claim payouts declined from $575.4 million in FY 2019 to $478.7 million in FY 2020.

Labor and Employment Claims

Historically, claims by City employees relative to the terms and conditions of their employment have been recorded as either personal injury civil rights claims or law salary claims depending on the nature of the claim. Beginning in FY 2019, the Comptroller’s Office began recording all claims filed by City employees relative to the terms and conditions of their employment as labor and employment claims. In the FY 2020 Claims Report, we continue to report claims data for FYs 2019 and 2020 labor and employment claims under its historic claim types for analysis continuity.

Law Claims

Law claims include disputes arising from City contracts, equitable claims, refund claims, City employee salary disputes, claims involving Department of Education (DOE) special education matters, sidewalk assessments, cleanup costs levied on property owners who are in violation of the Mental Hygiene Law, and affirmative claims that are brought by the City against individuals, companies, corporations, and other entities for torts, breaches of contract, and as remedies for violations of civil codes.

• In FY 2020, the City paid out $486.2 million in law claims, a 34 percent increase from the $363.2 million paid out in FY 2019.
• Ninety-three percent of all law claim settlements and judgments in FY 2020 were related to claims for reimbursement of the cost of special education services.

Under the New York City Charter, the Comptroller has the power to settle or adjust all claims in favor of or against the City.  This work is performed by the Comptroller’s Office Bureau of Law and Adjustment (BLA), which, under the direction of the Comptroller, the General Counsel, and the Assistant Comptroller for BLA, comprises attorneys, claims professionals, engineers, and administrative staff.

In 2014 the Comptroller’s Office introduced ClaimStat, a data-driven analysis of claims filed against the City. ClaimStat was conceived as a way for City agencies to review claims data in real time, identify claim filing trends that are costly to the City, and implement policies and best practices to mitigate risk or avoid filing of claims altogether. ClaimStat has proven to be a valuable device for agency’s using risk analysis to reduce the number of claims filed against the City and, in turn, limit the City’s financial exposure.

Currently, the Comptroller’s Office shares real-time data and coordinates with the Department of Correction (DOC), the Department of Sanitation (DSNY), Department of Citywide Administrative Services (DCAS), and the New York City Police Department (NYPD). The Comptroller’s Office continues to work to expand coordinated efforts with City agencies to mitigate risk and to help implement best practices.