New York 50B Calculator

In essence, New York 50B prescribes the manner and content of personal injury and wrongful death General Liability valuations. Original 50B applies to all cases.

The statute makes reference to settlements and rights of the parties to settle an action"...as the parties consider appropriate and in their complete discretion." That has become particularly important as the 10-year Treasury rates have declined from 4.00 to 4.50% to 1.50 to 2.25%. For those elements to which statutory inflation of 4% is applicable, the breakeven discount rate, or that discount rate below which the discounted Award exceeds the Award after lump sum deductions, is 3.625%. For future periods up to 20 years the index rate is the discount rate. Beyond 20, it is the weighted average of the index rate for the first 20 years and two percentage points above the index rate for years beyond twenty. For future periods of 30 Years, an index rate of 2.96% will yield a breakeven discount of 3.625%.

As Amended 50A provides the only legislative guidance, the calculation of discount rates has been extended to New York 50B General Liability actions. Court decisions seem to have settled upon the daily yield on the date of the verdict as the rate in effect on the date of the verdict .

Under 50B, $250,000 in lump sums is allocated across and deducted from the elements of future damages.

The calculators do not incorporate Award development, separate handling of Loss of Consortium or Loss of Services, or allocation of Awards between past and future damages. Due to the complications of extended lost or impaired earnings and Collateral Source offsets, they are not included in the valuations.

Extended capabilities are incorporated in our full valuation. The definitive valuation summary, detailed reconciliation of the valuation together with the detail of past damages, and monthly, annual and discounted annual payment schedules are produced with the full valuation. Interim payment, Judgment and payment worksheets together with associated interest are also generated from the full valuation. The Award generator allocates amounts to past damages, and produces extended lost or impaired earnings.

Accessing the Calculator Access the system online and run it.

• �Passwords or ids are not required.
• �Case information is not provided.
• �There is currently no charge for Calculator use
• �They are really simple to use.

Calculator Operation

The operation of the calculators begins with 'Clear'.

Upon pressing 'Clear', The basic information requirements will appear.

• �An effective tax rate can be selected by scrolling through the rates and clicking on a selection. If none is selected no tax is applied.
• �If the 10-Year Treasury rate is selected, a list is provided from which a selection can be made. In the off-chance that the parties wish to use individual rates, its selection will produce a frame with separate rate selection for each loss element.
• �If a contingent fee rate is to be selected (NY50B), a list is provided from which a selection is made.
• �Allowable expenses are then entered
• �Future Pain and Suffering, Future Medical Expenses and Future Economic Loss or any one or more can be entered. The data
• �Years and months by element, and
• �Total Future Award
• �Past damages are entered.

'Calculate' produces a full valuation including

• �Discount rates for each element.
• �Lump Sums by element
• �The undiscounted value for each element
• �The discounted value net of allowed expenses
• �Calculation and application of contingent fees
• �Net Valuation by element
• �Net first monthly payment.

To test different rates, scroll to new ones and then calculate.