634 - Subrogation.

§ 634. Subrogation.  1.  (a)  Acceptance  of an award made pursuant to  this article shall subrogate the state, to the extent of such award,  to  any  right  or right of action accruing to the claimant or the victim to  recover payments on account of losses  resulting  from  the  crime  with  respect  to  which  the award is made. Upon the payment of an award, the  office may, by writing, notify  the  claimant  that  such  claimant  has  ninety  days,  or  thirty  days  prior  to the date of expiration of the  applicable statute of limitations, whichever period is  shorter,  within  which  to  commence  an  action against his assailant or any third party  who, as a result of the crime, may be liable in damages to the claimant.  If the claimant fails to commence an action  within  the  time  provided  herein,  such failure shall, after written notification by the office to  the claimant, operate as an assignment of the claimant's cause of action  against the assailant or such other third party to the state;  provided,  however,  that  should the claimant's cause of action be in an amount in  excess of the office's award, such assignment shall  be  for  only  that  portion of the cause of action which equals the amount of the award.    (b)  The office of victim services shall review those claims that have  been approved by the office and that have resulted in an award in excess  of one thousand dollars for the purpose of identifying those  causes  of  action  that  are likely to result in recovery of the state's payment to  the victim. The office shall submit a list of these claims on a  monthly  basis to the attorney general with all necessary information relating to  the  case  including  whether  the  claimant's  cause of action has been  assigned to the office.    (c) The attorney general may commence an action against the  defendant  convicted of the crime or third party for money damages to the extent of  the award paid, and the claimant shall retain a right of action, subject  to  defenses, to recover damages for the full amount of loss incurred by  him as a result of the crime less the amount assigned to  the  state  by  operation  of  this  subdivision. Notwithstanding any other provision of  law, an  action  brought  by  the  attorney  general  pursuant  to  this  paragraph against the defendant convicted of the crime must be commenced  within  seven  years  of  the  crime  or  pursuant  to  the  time frames  authorized in subdivision three of section six hundred  thirty-two-a  of  this  article.  A  claimant  who  retains  such right of action shall be  permitted  to  intervene  in  any  action  brought  pursuant   to   this  subdivision  by the attorney general. Any action brought by the attorney  general may be compromised or settled provided the attorney general  and  the office find that such action is in the best interests of the state.    2. Acceptance of an award made pursuant to this article shall create a  lien  in  favor  of  the  state on the proceeds of any recovery from the  person or persons liable for the injury or  death  giving  rise  to  the  award by the office, whether by judgment, settlement or otherwise, after  the  deduction  of  the reasonable and necessary expenditures, including  attorney's fees, incurred in  effecting  such  recovery,  to  the  total  amount  of  the  award made by the office. Such lien shall attach to any  moneys received or to be received by the claimant or victim  on  account  of losses resulting from the crime. Should the claimant or victim secure  a  recovery  from  the  person or persons liable for the injury or death  giving rise to the award by the office, whether by judgment,  settlement  or otherwise, such claimant may, upon notice to the office, apply to the  court  in  which the action was instituted, or to any court of competent  jurisdiction if no action was instituted, for an order apportioning  the  reasonable   and  necessary  expenditures,  including  attorney's  fees,  incurred  in  effecting  such  recovery.  Such  expenditures  shall   be  equitably  apportioned by the court between the claimant and the office.  A copy of such lien shall be mailed to the clerk of  the  county  withinwhich the crime occurred and such clerk will file the copy in accordance  with  the  duties  of  such  clerk  as set forth in section five hundred  twenty-five  of  the  county  law.  The  amount  of  such  lien  may  be  compromised or settled by the office provided the office finds that such  action  is  in  the  best interests of the state, or payment of the full  amount of the lien to the state  would  cause  undue  hardship  for  the  victim.    3.  Any  claimant who has received an award under this article, or his  guardian, judicially appointed personal representative, or  his  estate,  who  brings  an  action for damages against the person or persons liable  for the injury or death giving rise to an award by the office under this  article shall give written notice to the office of the  commencement  of  such  action  at the time such action is commenced. Such notice shall be  served personally or by certified mail, return receipt requested.    4. The attorney general may intervene, as of right, in any such action  on behalf of the state of New York for the  purpose  of  recovering  the  subrogated  interest  due  the state of New York under the provisions of  this article.    5. The director shall adopt rules and regulations  to  carry  out  the  provisions and purposes of this section.    6.  The  office  shall  compile  information  on  the  number of cases  submitted to the attorney general, the number of actions  instituted  by  the  attorney  general  to  recover  payments made to crime victims, the  dollar amount of recoveries made in such actions both on behalf  of  the  state  and any awards made to victims who intervene in such actions. The  office shall include this information, and any  recommendations  to  the  governor  and  legislature  to  improve the collection of awards, in its  annual report.