American Economy Ins. Co. v. State of New York
- Case Date: 3/26/2018
- Project Name: Criminalization of Free Enterprise - Business Civil Liberties Program
On March 26, 2018, WLF filed a brief in the U.S. Supreme Court, urging it to review (and ultimately strike down) a New York law that retroactively imposed a massive monetary obligation on insurance carriers to pay workers’ compensation benefits that they never agreed to pay under their insurance policies. WLF argued that the statute violates several constitutional provisions designed to restrain government authority, including the Contracts Clause (which prohibits States from impairing contracts) and the Takings Clause (which prohibits governments from taking private property without just compensation). The new law requires insurers to pay for re-opened claims that first arose during pre-2014 policy periods—even though insurers never contractually agreed to pay re-opened claims (which formerly were paid by employers) and never charged premiums to account for such claims. WLF noted that the cost of paying the re-opened claims likely exceeds $1 billion.
More Information and Downloads:
3/26/2018: Download the Brief