McKee v. Sithe Independence Power Partners

—Order unanimously reversed on the law without costs and matter remitted to Supreme Court for further proceedings in accordance with the following Memorandum: Supreme Court erred in extinguishing the lien of Liberty Mutual Insurance Company (Liberty Mutual), the workers’ compensation carrier, on the damages awarded to petitioners in their underlying third-party action (see, Workers’ Compensation Law § 29 [1]). Petitioners alleged that Liberty Mutual’s share of the litigation expenses and the future benefits extinguished by the judgment in the underlying action (see, Matter of Kelly v State…