THE JUSTICE FOR INJURED WORKERS ACT (JIWA) PROHIBITS GIVING COLLATERAL ESTOPPEL EFFECT TO WORKERS’ COMMPENSATION BOARD RULINGS IN SUBSEQUENT PERSONAL INJURY ACTIONS STEMMING FROM THE SAME INCIDENT, EVEN WHEN THE WORKERS’ COMPENSATION BOARD RULING PREDATES THE ENACTMENT OF THE JIWA (CT APP). ​

The Court of Appeals, affirming the Appellate Division’s reversal of Supreme Court on a different ground, determined the Justice for Injured Workers Act (JIWA), which prohibits giving a Workers’ Compensation Board’s ruling collateral estoppel effect in a subsequent personal injury action, applies to Workers’ Compensation Board rulings which predate the enactment of the JIWA. The Appellate Division described the application of collateral estoppel in this context as the retroactive application of the JIWA. The Court of Appeals disagreed, stating that a “statute does not operate ‘retrospectively’ merely because it is applied in a case arising from conduct antedating the statute’s enactment:”

At the time Supreme Court rendered its decision, JIWA had been in effect for several months. By its plain terms, JIWA, as of its effective date, prohibits courts from giving collateral estoppel effect to workers’ compensation decisions arising out of the same occurrence, except with respect to the existence of an employer-employee relationship (see Workers’ Compensation Law § 118-a). Pursuant to a straightforward prospective application of JIWA, Supreme Court therefore erred in giving collateral estoppel effect to the 2021 [pre-enactment] decision of the Workers’ Compensation Board. * * *

As of JIWA’s effective date of December 30, 2022, courts are prohibited from giving collateral estoppel effect to workers’ compensation decisions in pending or future lawsuits, except as to the existence of an employer-employee relationship. Because the statute applied at the time Supreme Court rendered its decision, the court erred in granting defendant’s motion.  Garcia v Monadnock Constr., Inc., 2026 NY Slip Op 03217, CtApp 5-21-26

Practice Point: Here, although the JIWA was applied to a Workers’ Compensation Board ruling which predated the enactment of the JIWA, it was not necessary to apply the JIWA “retroactively.” Only a straightforward prospective application of the JIWA was required.