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 pursue compensation from third-party defendants or co-defendants. when the original defendant fails to pay a court-ordered judgment, potentially increasing the likelihood that injured parties actually recover damages.
Changes the practical risk for parties who may be liable for contribution or indemnification. (such as subcontractors, insurers, or business partners), since they can be compelled to pay the plaintiff directly if the main defendant does not satisfy the judgment.
Allows plaintiffs to take over (attach or be assigned) the defendant’s legal claim for contribution or indemnification. and pursue it themselves, streamlining the process of collecting damages and avoiding unnecessary legal hurdles or delays.
Includes safeguards to protect certain third parties, such as employers covered by workers’ compensation laws, from direct recovery by the plaintiff,. maintaining existing legal protections in those contexts.
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Who cares
Headline styles
Let Plaintiffs Sue Third Parties
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
No co-sponsors yet.
History
- Vetoed memo.287
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.638
- Substituted for A2373
- Referred to codes
- Delivered to assembly
- Passed senateVote 43–19
- Ordered to third reading cal.1801
- Referred to rules
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 Liable Third Parties
Assembly Floor Calendar · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6552
2019-2020 Regular Sessions
IN SENATE
June 16, 2019
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
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
S. 6552 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.
Sponsor's memo
Title of bill
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
Purpose of bill
This bill would add a new Section 1405 to the Civil Practice Law and Rules (CPLR) to expressly permit a plaintiff, as judgment credit or against defendant, to recover and collect an unsatisfied judgment or portion of a judgment directly against a third-party defendant found liable for contribution or indemnification.
Summary of provisions of bill
Section 1: Adds a new Section 1405 to the CPLR to permit a plaintiff to recover and collect an unsatisfied judgment or a portion of a judgment against a third-party defendant or co-defendant, when a plaintiff has entered judgment against a defendant which is unsatisfied thirty days after service on the defendant-judgment debtor, and where judgment has been entered in favor of the defendant-judgment debtor against a co-de- fendant or third-party defendant on a cause of action for contribution or indemnification. Under certain circumstances where the plaintiffs 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 indemnification which has not been reduced to judgment, then 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 action in the plaintiffs own name or in the name of the defendant judgment debtor. Direct recovery, however, is not authorized against a third-party defendant in those circumstances in which the third-party claim would have been barred by Section 11 of the Worker's Compensation Law. Protects the ability of a plaintiff-judgement creditor to enforce their rights against a third-party pursuant to this legislation by preserving the ability for plaintiff-judgement creditor to pursue a judgement or cause of action against a third party even if such claim or cause of action is extinguished in the bankruptcy of a defendant-judgement debtor.
Read the full memo (754 words)
Section 2: This shall take effect immediately, and shall apply to all unexpired judgements that have not been fully satisfied as of the date of enactment.
Existing law
Section 1401 of the CPLR provides, with certain exceptions under the General Obligations Law and the Workers' Compensation Law, that two or more persons who are subject to liability for damages for the same personal injury, injury to property or wrongful death, may claim contribution among them whether or not an action has been brought or a judgment has been rendered against the person from whom contribution is sought. Section 1403 of the CPLR provides that a cause of action for contribution may be asserted in a separate action or by cross-claim, counter-claim or third-party claim in a pending action.
Justification
A plaintiff's recovery of a judgment that ultimately comes from a third party defendant should not depend on the fortuity of the solvency of the defendant/third party plaintiff. Accordingly, this measure would allow a plaintiff to recover on a judgment for contribution or indemnification directly against the third-party defendant, whether or not the defendant/third party plaintiff has satisfied the underlying judgment for which contribution or indemnification is sought. Thus, in the case where a defendant/third party plaintiff is insolvent and is unable to pay the judgment to the plaintiff: the plaintiff could still seek to recover directly that portion of the judgment, as determined by the principles of contribution and indemnification, owed by the third party defendant to the defendant/third party plaintiff. This bill also seeks to protect the ability of an injured plaintiff to collect a judgement in the event a defendant-judgement debtor's cause of action or judgement against a 3rd party wrongdoer is extinguished in bankruptcy, leaving the plaintiff with no remedy to collect their judgment.
This measure would not alter in any way the substantive law of the Work- ers' Compensation. The 1996 Omnibus Worker's Compensation Reform Act already limits claims for contribution and indemnification against an employer to only those cases involving "grave injuries." In cases where there are not grave injuries the employer is not liable as a matter of substantive law, and therefore this measure would not affect such employees at all.
Legislative history
2017-2018-A.9031 2015-2016-S.563/A.251; 2013-2014- S.555A/A.1002A; 2011-2012-S.3761/A.630; 2009-2010-S.2392/A.2576; 2007-2008-S.2065/A.6310; 2005=2006-S.7487/A.11076; 2003-2004-S.5006/A.7493;
Fiscal implications for state and local governments
None.
Effective date
This Act will take effect immediately, and shall apply to all unexpired judgments that have not been fully satisfied as of the date of enact- ment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.