In a Florida case Michele Haddad was injured in a motorcycle accident when she was struck by a drunk driver who caused a spinal cord injury with paralysis and left her a quadriplegic. Michele requested services from the state, but was told that she would first have to be institutionalized for at least 60 days.

The U.S. District Court in Jacksonville ruled in Michele Haddad’s favor, that the state must provide her with services so she can remain in her home and not be institutionalized.

See the Americans with Disabilities Act helps injured motorcycle accident victim.

The caller said that because he was driving the motorcycle illegally and was issued a ticket for driving without a license, he thought that he would not be able to have a lawsuit.  I asked him, if he had a valid motorcycle license at the time of the accident would that have prevented the accident?

Someone could be driving without a valid motorcycle license for various reasons such as: it was valid but left at home; was suspended or revoked; the driver failed to renew it; or the driver never obtained a license, but that didn’t cause the accident!

Some people think that if the motorcycle operator obeyed had the law, he would not be in that place at that time and the accident could never have happened.  However, the only issue is whether the other driver is at fault.  The caller’s injuries were 100% caused by the other driver’s negligence when the caller’s motorcycle, which was stopped at a red light, was hit in the rear by the car.  The motorcyclist is therefore entitled to be compensated for his injuries.

If a motorcyclist had never been issued a motorcycle license, it would only become an issue if lack of training had anything to do with the accident and could only be considered contributory negligence.

If the injured operator of a motorcycle previously had a motorcycle license which was expired, suspended or revoked but did not have a valid license at the time of the accident, the lack of a valid license should have no bearing on the accident or his right to compensation for injuries because an argument could not be made that the motorcyclist did not ever receive the required training to operate a motorcycle.

If you have been hurt in a motorcycle accident in which you were operating the motorcycle without a valid license, please call New York motorcycle accident lawyer Phil Franckel immediately for a free consultation at

1-800-HURT-911
1-800-487-8911

What is No-Fault insurance coverage? No-Fault insurance coverage pays for your medical treatment, other expenses and lost wages. New York State requires minimum No-Fault coverage of $50,000. No-Fault insurance generally pays benefits to people hurt in car accidents, but can pay benefits to people injured in motorcycle accidents.

Some motorcyclists think that they can receive No-Fault insurance coverage benefits when they are injured in a motorcycle accident. Some people think that No-Fault insurance coverage doesn’t protect motorcyclists but is available for passengers on a motorcycle who are injured in an accident. After all, why would No-Fault coverage be listed on a motorcycle insurance policy if there was no coverage?

The Answer

New York No-Fault insurance benefits are NOT available to motorcyclists or their passengers. Article 51 of the New York Insurance Law is also known as “The No-Fault Law”. Article 51 § 5102(f) states, “‘Motor vehicle’… shall not include… a motorcycle, as defined in subsection (m) hereof. § 5102(m) “Motorcycle” means any motorcycle, as defined in section one hundred twenty-three of the vehicle and traffic law, and which is required to carry financial security pursuant to article six, eight or forty-eight-A of the vehicle and traffic law. § 5103(a)(2) “Entitlement to first party benefits” provides no-fault benefits to “The named insured and members of his household, other than occupants of a motorcycle…”

The reason that you will see No-Fault insurance coverage listed on your motorcycle insurance policy is that pedestrians struck by a motorcycle are covered by No-Fault insurance. § 5103(a)(1) provides no-fault insurance benefits to “Persons, other than occupants of… a motorcycle, for loss arising out of the use or operation in this state of such motor vehicle.”

If you are injured in a motorcycle accident, you may be unable to obtain costly MRIs, surgery, physical therapy and other medical treatment if you did not purchase medical insurance. Medical bills for motorcycle accidents usually cost between $30,000-$50,000 and can cost much more. I’ve already had one case with over $800,000 in medical bills. Without insurance coverage to pay for medical bills, it is difficult to get the medical treatment you need.

How to Get Medical Treatment for Motorcycle Accident Victims

If you are injured in a New York motorcycle accident without medical insurance, I can refer you to doctors, surgeons and MRI facilities who have agreed to treat injured motorcycle accident victims on a lien, which is a promise to pay from your motorcycle accident settlement.

Many accident lawyers do not know MRI facilities who will do an MRI on a lien or doctors who will do surgery on a lien.  Additionally, many accident lawyers will not agree to sign a lien, but I always agree to sign liens for my clients.

If you have been HURT in a New York motorcycle accident, please call Phil Franckel, Esq. for a free consultation, at 1-800-HURT-911.

As an example, your motorcycle was struck by a car with a $100,000 insurance policy. You receive a call from your lawyer advising that the insurance company has offered to settle your case for the full $100,000 insurance policy. If you decide to accept the settlement offer, the insurance company will require you to sign a release.

The release permanently releases the owner and driver of the car, which means you can never (unless fraud was committed) seek any more money for your injuries from the owner and driver of the car.

After you sign the release, your lawyer will send the release to the insurance company. Pursuant to New York State law C.P.L.R. § 5003-a, the insurance company must send the settlement check within 21 days of the date the release was mailed to the insurance company. The insurance company will mail the settlement check to your lawyer.

Your lawyer will deposit the settlement check into an escrow account called an I.O.L.A. account (Interest On Lawyer Accounts). Because settlement checks are out-of-state checks for large amounts, it can take up to 10 days for the bank to clear your settlement check. After your check clears, your lawyer will likely deduct case expenses, then deduct legal fees, and issue a check to you for your net settlement.

My bank usually clears checks in one day and I issue the settlement check to my client the next day. I do not charge motorcycle accident clients for expenses when settled in claim as almost all motorcycle accidents are. I do not charge additional legal fees (such as for negotiating medical liens) and charge only one third of the settlement amount, which can save you thousands of dollars.

If you have been hurt in a New York motorcycle accident, please call Phil Franckel, Esq. immediately, and before speaking with any insurance company, for a free consultation, at 1-800-HURT-911.

New York regulations allow a maximum storage fee of $15 per day if your motorcycle is stored outside. If your motorcycle is stored inside, the shop must have a sign posted which indicates the storage fee. If your motorcycle has to be disassembled to provide an estimate, the shop may charge a disassembly fee.

New York Motor Vehicle Repair Shop Regulations PART 82.8 (c) (1) provides that a customer may not be charged for storage unless notice in writing is given by a statement on an estimate or other document given to the customer.

(2) Storage of the motorcycle may not be charged during the period from which the customer has authorized repairs to one business day after the repair shop has notified the customer to pick up the repaired motorcycle. (There is a contradiction on page 22 of the Motor Vehicle Repair Shop Regulations which states that the repair shop cannot begin charging for storage until two business days after they have notified you to pick up your motorcycle.

(d) Upon reasonable notice a customer may remove the motorcycle from a repair shop during the shop’s business hours upon paying for storage charges.

For information on towing your motorcycle in New York City, see the Towing Service Guide.

Some people think that if you have a Worker’s Compensation claim, you cannot have a personal injury claim. The Worker’s Compensation Law, enacted by the New York State Legislature in 1914, took away the right of an employee to sue an employer in most instances. However, you may be able to sue a third-party whose negligence caused or contributed to your injury in an accident while at work.

It’s not very common to have a Worker’s Compensation claim involving a motorcycle and a personal injury claim from the same accident, but it is possible. It is more common to have a personal injury claim if you were hurt while driving a car or van for work.

Some people may be employed to work on motorcycles or ride motorcycles for work and encounter an injury while working. These injuries may be covered only by Worker’s Compensation or by Worker’s Compensation and a personal injury claim.

For instance, an employed motorcycle mechanic would be covered only by Worker’s Compensation when injured in the shop from an accident that was not caused by someone other than the mechanic or the employer. However, if the mechanic is injured by someone else’s negligence, the mechanic can be covered by Worker’s Compensation and may also have a personal injury lawsuit.

If the mechanic is working on a motorcycle in front of the shop and a customer driving to the motorcycle shop strikes the mechanic, the mechanic may have both a Worker’s Compensation claim and a personal injury claim against the owner and driver of the car.

Likewise, a motorcycle police officer could be injured because the officer parked the motorcycle on hot asphalt where it sink into the asphalt and fell onto the police officer. Since there was no one besides the officer or employer negligent for the injury, this would only be covered by workers compensation. However, if the police officer’s motorcycle was struck by a car that ran a red light, the police officer would have both a Worker’s Compensation claim and a personal injury claim against the owner and driver of the car that ran the red light.

If you have been hurt in a New York motorcycle accident while working, please call New York motorcycle accident lawyer Phil Franckel immediately (days/nights/weekends) for a free consultation to discuss which benefits and claims you are entitled to.

1-800-HURT-911
1-800-487-8911

After 17 tax credits in law school, this is a topic which interests me and on which I can write a few pages. For informational purposes only, I will attempt to provide a simple, general answer here in just a few paragraphs. You should not rely on this information and you should consult a CPA, accountant or tax professional regarding your specific circumstances before settling your case or before filing your tax return if you have already signed a release and settled your case.

IRC section 104(a)(2) addresses income exclusions for taxation of personal injury lawsuit settlement payments, which includes New York motorcycle accidents. Money paid for property damage and medical bills is not taxable because it is offset by a loss. Likewise, money paid for “pain and suffering” in settlement of a personal injury claim is generally not taxable because it is compensation for a loss which is intended to make you whole again.

When is money paid to settle a personal injury claim taxable?

Lost Wages/Lost Income. Money paid for lost income is taxable.

Psychological Injuries. Money paid for psychological injuries may be taxable. The U.S. Court of Appeals for the District of Columbia in Murphy and Leveille, Appellants v. IRS and USA, Appellees, reversed a decision that money paid for psychological injuries is not taxable. The court ruled that the personal injury award Ms. Murphy received was “within the reach of the congressional power to tax under Article I, Section 8 of the Constitution”, even if the award was “not income within the meaning of the Sixteenth Amendment”. The U.S. Supreme Court denied review of the decision on April 21, 2008.

Punitive Damages. Money paid for punitive damages is taxable. IRC section 104(a)(2) was amended in 1996 making punitive damages taxable without regard to their connection to a physical or nonphysical injury or sickness.

Interest Earned after a Personal Injury Settlement. If you receive money for an injury which is not taxable and you deposit the money in a savings account or otherwise invest it, outside of certain kinds of trusts such as a Special-Needs Trust or Pooled Trust, the interest earned is taxable. For more information about Special-Needs Trusts or Pooled Trusts, see HelpWithLiens.com.

When money is awarded pursuant to a verdict after trial, the verdict will state how much money is paid for property damage, medical bills, lost wages, pain and suffering, etc. The amount of your personal injury award which is subject to taxation by the IRS or state tax authority will be determined by the jury verdict.

The problem is when money is paid pursuant to a settlement, many lawyers frequently do not state in the release what the money is being paid for. It is possible for the IRS to make a determination by examining various papers in the file, such as the initial claim letter, the legal complaint, papers submitted to the insurance company as proof of damages, and the release which was signed.

This problem can be rectified with the proper wording in the settlement release. The usual “General Release” form is silent on tax issues and thus not helpful. It is therefore important to customize the release to address the tax issues. The provisions which result in a favorable tax status are often adverse to the insurance company’s interests, however, I have usually been able to successfully include provisions in my clients’ release to prevent taxation of settlement proceeds.

If you have been hurt in a New York motorcycle accident, I will be happy to discuss income tax implications of your settlement payment and the ways in which I can help you to avoid any income tax liability, so that you do not have to pay any income taxes on your motorcycle accident settlement.