The figure is not always final
After a jury verdict, either side can usually ask the trial judge to set aside or adjust the award. New York courts have authority to reduce an award they find out of line with reasonable compensation, typically offering the plaintiff a choice between accepting a lower amount and a new trial on damages, and in some situations the reverse can happen. An appeal can revisit the award again. Arbitration awards follow a different path: they are confirmed in court, and the grounds for setting one aside are narrow, but the time to challenge one is short. Interest may also be added to the award, and in some New York cases it runs from a point before the judgment itself.
Collection and delay
A judgment in your favor is a right to be paid, not a payment. If the other side does not pay voluntarily, enforcement tools in New York include information subpoenas, restraining notices on bank accounts, and executions against property or income. A defendant who appeals may need to post an undertaking or bond to pause collection of a money judgment while the appeal runs. Insurance coverage limits, bankruptcy filings, and assets held in other states can all affect what is actually recovered. Keep track of all payment communications and anything you learn about the other side's assets.
Planning around the award
The tax treatment of an award depends on what it compensates; damages for personal physical injury are generally treated differently from lost profits, punitive damages, or interest, so a tax adviser should look at the structure before any settlement is finalized. Liens from medical providers, insurers, or government programs may also attach to an injury award. In our first discussion we look at whether post-trial or appellate risk makes a negotiated payment worth considering, what collection might require, and which deadlines apply to motions, appeals, or confirmation. If you are the party that owes the award, we review options for challenging it and the cost of delaying payment.
