NYC Comptroller Lander Releases New York City Claims Report for FY 2021

 

 Today, New York City Comptroller Brad Lander released the Annual Claims Report for Fiscal Year (FY) 2021. The Claims Report includes detailed breakdowns of personal injury and property damage claims, including motor vehicle, civil rights, and police action claims, as well as non-tort claims, such as contract claims and special education claims, filed against the City with settlement costs paid by the City in the covered fiscal year.

“Our office’s Bureau of Law and Adjustment works hard every day to settle viable claims filed against the City prior to litigation, which saves both the City and the claimant the costs of litigation. Our Annual Report on Claims takes a data-driven approach to analyzing claims, settlements, and judgments so we can reduce the harm to New Yorkers and the amount the City pays out – because every dollar we spend on settling claims or judgments for harm done is one we can’t spend on services or investments that help New Yorkers. We invite City agencies, the media, civic technologists, and New Yorkers to review this report and use it as a risk management tool to spot patterns and problem areas that continue to cost the City and New Yorkers,” said Comptroller Brad Lander.

In FY 2021, 10,618 claims and lawsuits against New York City were resolved for $933.7 million, a decrease compared to 13,741 claims and lawsuits resolved for $1.03 billion in FY 2020. The five costliest areas of claim settlements in FY 2021 were motor vehicle, civil rights, police action, medical malpractice, and sidewalk claims. Together, these five claim types cost $430.9 million and accounted for 78 percent of all personal injury claim settlements. This year’s report has been updated to include several additional charts including Total Amount of Property Damage Settlements & Judgements Recorded by Claim Type, and the Number of Payouts and Total Dollar Amount of Motor Vehicle Settlements & Judgements by City Agency.

Total Numbers of Claims Settlements & Judgements,
FY 2020 vs. FY 2021 

Total Numbers of Claims Settlements & Judgements Paid, FY 2020 vs. FY 2021

Motor Vehicles Account for Largest Share of Tort Settlements by Claim Type

Claims stemming from crashes with City-owned vehicles account for the largest share of both personal injury and property damage settlements by claim type in FY 2021, though both the number of personal injury claims filed and the amount of settlements paid decreased from FY 2020. For the first time, the Comptroller’s claims report provides a breakout of motor vehicle claims filed, settlements, and payouts by City agency for the past decade.

• There were 1,193 personal injury motor vehicle claims filed in FY 2021, down 14 percent from FY 2020 when 1,389 personal injury motor vehicle claims were filed.
• In FY 2021, personal injury motor vehicle claim settlements cost $133.7 million, an eight percent decrease, compared to $145.1 million paid out to resolve motor vehicle claims in FY 2020.
• Personal injury claims resulting from motor vehicles accounted for 24 percent of all personal injury claims by claim type.
• Motor vehicle claims accounted for 74 percent of property damage claims settled in FY 2021, for a total of $4.5 million.
• There has been a 99 percent increase in personal injury motor vehicle claim total payouts since FY 2015 when $67.4 million was paid out. Furthermore, the average payout per settlement increased from $115,326 in FY 2015 to $253,213 in FY 2021, a 120 percent increase.

New York Police Department Accounts for Largest Share of Tort Claims by Agency

NYPD settlement costs were the highest among all City agencies in FY 2021. Tort claims against the NYPD include, but are not limited to, allegations of excessive force, civil rights violations, and personal injury or property damage arising out of motor vehicle accidents involving police vehicles.

• The number of tort claims filed against the New York City Police Department (NYPD) dropped to 5,166 in FY 2021 from 5,726 in FY 2020, a 10 percent decline.
• NYPD tort claim settlement and judgment payouts decreased by one percent, to $206.7 million in FY 2021 from $209.3 million in FY 2020.
• NYPD tort claims accounted for 37 percent of the total overall cost of resolved tort claims in FY 2021.
• Of claims filed in FY 2021 against the NYPD, 482 claims and actions alleged police misconduct during widespread protests across the City during Summer 2020. The number of overall claims and actions filed against NYPD arising out of the 2020 protests are more than 550.

Special Education Claims Account for Largest Share of Law Claims

Special education claims include claims on behalf of parents for the reimbursement of special education services costs and tuition and claims for statutory attorneys’ fees where an underlying claim for special education reimbursement has been successful. In June 2014, the City launched the “fast track” process to address claims for costs and tuition payments from parents of students requiring special education services. Special education claims continue to account for the largest proportion—86 percent—of law claims filed in FY 2021 and continue to drive the total number of law claims filed.

• In FY 2021, there were 6,015 special education claims filed, compared to 2,582 claims filed in FY 2014, an increase of 133 percent.
• While the number of claims filed remained steady in FY 2021 (a one percent decrease), the total number of special education claims settled in FY 2021 decreased by 33 percent to 3,636 from the 5,398 claims settled in FY 2020.
• The total settlement amount paid out for DOE special education claims in FY 2021 decreased 38 percent to $224.1 million from $360.4 million paid out in FY 2020.

Under the New York City Charter, the Comptroller has the power to settle or adjust all claims against or on behalf of 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.

The full Annual Claims Report for Fiscal Year 2021 can be read here.