BILL NUMBER: S5170
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to permit-
ting a plaintiff to recover against a third party defendant in certain
cases
 
PURPOSE:
This bill would add a new Section 1405 to the Civil Practice Law and The
Civil Procedure Rules (CPLR) expressly permit a plaintiff, as a judgment
creditor against the defendant, to recover and collect an unsatisfied
judgment or portion of a judgment directly against a third-party defend-
ant found liable for contribution or indemnification.
 
SUMMARY OF PROVISIONS:
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 who 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 plaintiff
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 Com pensation Law.
Protects the ability of a plaintiff-judgment creditor to enforce their
rights against a third party pursuant to this legislation by preserving
the ability for a plaintiff-judgment creditor to pursue a judgment or
cause of action against a third party even if such claim or cause of
action is extinguished in the bankruptcy of a defendant-judgment debtor.
Section 2: Sets Effective Date.
 
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 that portion of the judgment directly, 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 judgment in
the event a defendant-judgment debtor's cause of action or judgment
against a 3rd party; the wrongdoer is extinguished in bankruptcy, leav-
ing the plaintiff with no remedy to collect their judgment.
This measure would not alter the substantive law of Workers' Compen-
sation. The 1996 Omnibus Worker's Compensation Reform Act already limits
claims for contribution and indemnification against an employer to cases
involving "grave injuries." In cases where there are no grave injuries,
the employer is not liable as a matter of substantive law, and there-
fore, this measure would not affect such employees at all.
 
LEGISLATIVE HISTORY:
Senate
2001: S3574, Referred to Codes
2002: S3574, Committee Discharged and Committed to Rules
2003: S5006, Referred to Codes
2004: S5006, Referred to Codes
2005: N/A
2006: S7487, Referred to Codes
2007: S2065A, Advanced to Third Reading
2008: S2065A, Amend and Recommitted to Rules
2009: S2392, Referred to Codes
2010: S2392, Referred to Codes
2011: S3761, Referred to Codes
2012: S3761, Referred to Codes
2013: S555A, Amend and Recommit to Judiciary
2014: S555A, Advanced to Third Reading
2015: S563, Referred to Judiciary
2016: S563, Referred to Judiciary
2017: S412A, Referred to Judiciary.
2018: S412A, Amend and Recommit to Judiciary
2019: S6552, Passed Senate
2020: S6552, Vetoed Memo.287
2021: S5152, Referred to Judiciary
2022: S5152, Referred to Judiciary
2023: S5188, Referred to Judiciary
2024: S5188, Passed Senate
Assembly
2001: A7342, Referred to Judiciary
2002: A7342, Advanced to Third Reading Ca1.254
2003: A7493, Referred to Judiciary
2004: A7493, Advanced to Third Reading Ca1.107
2005: N/A
2006: A11076, Referred to Judiciary
2007: A6310A, Referred to Judiciary
2008: A6310A, Advanced to Third Reading Ca1.834
2009: A2576, Referred to Judiciary
2010: A2576, Referred to Judiciary
2011: A630, Referred to Judiciary
2012: A630, Referred to Judiciary
2013: A1002A, Ordered to Third Reading Rules Ca1.614
2014: A1002A, Ordered to Third Reading Rules Ca1.48
2015: A251, Reported Referred to Codes
2016: A251, Reported Referred to Rules
2017: No Assembly Same-As
2018: No Assembly Same-As
2019: A2373, Reported Referred to Rules
2020: A2373, Veteoed Memo.287
2021: A3486, Referred to Judiciary
2022: A3486, Referred to Judiciary
2023: A2127, Referred to Judiciary
2024: A2127, Referred to Judiciary
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all