Comptroller Stringer Releases New York City Claims Report For FY 2018

(New York, NY) – Today, New York City Comptroller Scott M. Stringer released the Annual Claims Report, covering data for Fiscal Year (FY) 2018. The Claims Report includes breakdowns of personal injury and property damage claims (tort claims) as well as other categories of claims filed against the City and settlement costs paid by the City in the past fiscal year. Payouts for tort claims were down nearly 19% — the first decrease since FY 2012. This decrease in tort claim payouts was in large part due to a 32% drop in NYPD tort claim payouts as the number of new claims filed against the NYPD continued to decline to 6,472 in FY 2018 from 6,546 in FY 2017.

Meanwhile, the City has continued to clear the backlog of high-exposure legacy tort claims that have been in litigation for a decade or more, paying out $65.0 million for these claims, which amounts to roughly 11% of total tort settlements paid in FY 2018. The cost of non-tort claims — including contract disputes, equitable claims, and refund claims — increased by 16% to $400.1 million in FY 2018 from $343.9 million in FY 2017. More than 75% of all non-tort claim payments were related to claims for reimbursement of the cost of special education services.

Under the City Charter, the Comptroller’s Office is responsible for settling and adjusting claims on behalf of and against the City of New York. Building on this essential role, in 2014 when he assumed office, Comptroller Stringer introduced ClaimStat, a data-driven approach to help reduce claims filed and payouts on costly settlements. Over the last few years, ClaimStat examined several City agencies, including the New York Police Department (NYPD) and the Parks Department, as well as pothole costs and playground injuries.

“By partnering with city agencies to evaluate and resolve claims, we’ve seen significant progress in reducing the financial burden put on New Yorkers. Not only are we identifying areas for improvement, we’re freeing up more dollars for public services to lift working families up,” said Comptroller Stringer. “When we put forward data-driven approaches, we set up policy for long-term success. The improvements we’re seeing this year are a sign that agencies are improving their day-to-day practices and helping to prevent claims from being filed altogether. Year-by-year, agency-by-agency, and borough-by-borough we’ll keep analyzing new ways to improve the lives of taxpayers and all New Yorkers.”

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 NYPD.  The Comptroller’s Office continues to work to expand coordinated efforts with City agencies to mitigate risk and to help implement best practices.

Claims against the NYPD declined for the fourth consecutive fiscal year

Tort claims against the NYPD include allegations of excessive force, civil rights violations, and personal injury or property damage claims arising out of motor vehicle accidents involving police vehicles.

• The total number of tort claims filed against the NYPD declined to 6,472 in FY 2018 from 6,546 in FY 2017 — the fourth year of decline.
• Settlement costs on NYPD claims also fell by 32% to $229.8 million in FY 2018 from $335.5 million in FY 2017.
• A small number of claims disproportionally accounted for the total cost of NYPD settlements, including 5 wrongful conviction claims, which represent less than 1% of all NYPD tort claims resolved in FY 2018, yet cost $33.3 million or 14% of the total $229.8 million paid out for settlements involving the NYPD.
• In FY 2018, a total 1,507 civil rights claims were filed against the City, a 12% drop from 1,712 claims filed in FY 2017 — marking the fourth consecutive decline.
• Further, the cost of civil rights claim settlements decreased by 34%, to $102.7 million in FY 2018 from $155 million in FY 2017.

Malpractice claims filed and settlements paid out decreased

Medical malpractice claims, largely filed against NYC Health + Hospitals (H+H), are a form of personal injury tort claims.

• The number of malpractice claims filed decreased by 11% to 474 claims in FY 2018 from 534 claims filed in FY 2017.
• Medical malpractice claims represented 66% of all H+H claims filed in FY 2018.
• Medical malpractice claim settlements and judgments declined to $68.8 million in FY 2018 from $103.3 million in FY 2017.

Claims rose slightly at DOT, while falling at other agencies

• In FY 2018, the five agencies that experienced the largest number of total claims filed were the NYPD (6,472 claims), Department of Transportation (DOT) (4,818 claims), Department of Correction (DOC) (4,430 claims), Department of Sanitation (DSNY) (1,803 claims), and Department of Education (DOE) (1,230 claims).
• DOT experienced a 1% increase in claims filed to 4,818 in FY 2018 from 4,769 claims filed in FY 2017.
• The five agencies with the highest tort claim settlement and judgment costs in FY 2018 were the NYPD ($229.8 million), DOT ($89.6 million), DSNY ($74.9 million), H+H ($70.0 million), and DOC ($31.5 million).

Borough Breakdown: Bronx tops new claims filed

A borough-by-borough breakdown showed that in FY 2018 the largest number of tort claims filed were in the Bronx (7,204 claims), followed by Brooklyn (6,129 claims), Manhattan (4,588 claims), Queens (4,259 claims), and Staten Island (1,099 claims). Consistent with the prior four fiscal years, the Bronx had the most personal injury claims filed (6,039 claims).

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