What's happening
This bill allows plaintiffs to collect unsatisfied judgments from third-party defendants or co-defendants liable for contribution or indemnification.
Why it matters
Empowers plaintiffs to collect from solvent parties. If a defendant can't pay a court judgment, the bill lets plaintiffs collect from co-defendants or third-party defendants who are legally responsible for some or all of the debt, ensuring plaintiffs aren't left without recourse.
Reduces incentives for defendants to delay payment. By allowing plaintiffs to step into the defendant’s shoes and pursue claims for contribution or indemnification, the bill discourages judgment debtors from stalling, as their rights to recover from others can be seized and used by the plaintiff.
Streamlines and clarifies collection procedures. Plaintiffs can directly attach or take assignment of a defendant’s potential claims for contribution/indemnification, making the process more efficient and avoiding additional, costly litigation or procedural hurdles.
Protects employer immunity and workers’ compensation limits. The bill specifically prohibits plaintiffs from using these new rights to go after third-party defendants who are their employers if those claims would violate workers’ compensation protections, maintaining longstanding limits on employer liability.
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Who cares
Headline styles
Let Plaintiffs Sue Liable Third Parties
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by S6552
- Rules report cal.638
- Reported
- Reported referred to rules
- Reference changed to codes
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Plaintiffs Sue Third Parties
Vetoed · Sponsor James Skoufis
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2373
2019-2020 Regular Sessions
IN ASSEMBLY
January 22, 2019
Introduced by M. of A. DINOWITZ -- read once and referred to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to permitting a plaintiff to recover against a third party defendant in certain cases
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The civil practice law and rules is amended by adding a new section 1405 to read as follows:
§ 1405. Permitting plaintiff, as judgment creditor against defendant, to recover and collect unsatisfied judgment or portion of judgment against third-party defendant or co-defendant liable for contribution or indemnification. (a) Where a plaintiff has entered a judgment against a defendant and the judgment remains unsatisfied thirty days after it has been served on the defendant-judgment debtor, and where judgment has been entered in favor of the defendant-judgment debtor against a co-defendant or third-party defendant on a cause of action for contribution or for contractual or common law indemnification, the plaintiff-judgment creditor may collect any unsatisfied amount of the plaintiff's judgment against the defendant from the co-defendant or third-party defendant up to the amount awarded on the cause of action for contribution or indemnification.
(b) Where the plaintiff's judgment remains unsatisfied thirty days after it has been served on the defendant-judgment debtor, and where the defendant-judgment debtor has a cause of action for contribution or for contractual or common law indemnification which has not been reduced to judgment, the plaintiff-judgment creditor may attach, or take an assignment from the defendant-judgment debtor of, the cause of action for contribution or indemnification, and prosecute the cause of action in the plaintiff's own name or in the name of the defendant-judgment debtor, and recover a judgment therein for the same amount of contrib-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01267-01-9
A. 2373 2
ution or indemnification as would be awarded to the defendant-judgment debtor if the defendant-judgment debtor had satisfied plaintiff's original judgment in full. Such remedy is in addition to any other means available to the plaintiff-judgment debtor for enforcement of the judgment. This section shall not authorize direct recovery against a thirdparty defendant in those circumstances in which the third-party claim against that third-party defendant would have been barred by the provisions of section eleven of the workers' compensation law, and does not otherwise permit a plaintiff to bring a cause of action against a third party if such third party was the plantiff's employer at the time of the incident or injury.
§ 2. This act shall take effect immediately, and shall apply to all judgments entered by plaintiffs on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.