The Future Of Cplr 1405: Law Implementation Date

The New York legislature passed several measures to alter civil jurisprudence in the state, including the creation of a new statute, CPLR 1405, which will take effect immediately. CPLR 1405 permits plaintiffs to recover and collect an unsatisfied judgment or partial judgment against a third-party defendant or co-defendant if the direct defendant-judgment debtor has a claim for contribution or indemnification against them. This new statute aims to protect the rights of injured plaintiffs to collect judgments, even in cases where the defendant-judgment debtor's cause of action or judgment against a third-party wrongdoer is extinguished in bankruptcy. While this statute provides a new avenue for plaintiffs to seek recourse, it is important to note that direct recovery is not authorized if the claim would have been barred by the Worker's Compensation defense.

CPLR 1405 will allow plaintiffs to recover and collect an unsatisfied judgement against a third-party defendant

The Civil Practice Law and Rules (CPLR) is a set of laws in New York that govern civil litigation. CPLR 1405 is a new section of the CPLR that allows plaintiffs to recover and collect an unsatisfied judgment (or partial judgment) against a third-party defendant or co-defendant. This law was passed by the New York legislature in June 2019 and took effect immediately.

Prior to the introduction of CPLR 1405, a plaintiff's recovery of a judgment that ultimately comes from a third-party defendant depended on the solvency of the defendant/third-party plaintiff. This often left plaintiffs without a remedy to collect their judgment. The new law seeks to address this issue by allowing plaintiffs to recover and collect an unsatisfied judgment directly from a third-party defendant or co-defendant under certain circumstances.

Under CPLR 1405, a plaintiff can recover an unsatisfied judgment against a third-party defendant or co-defendant when the following conditions are met:

• The 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.
• The defendant-judgment debtor has a cause of action for contribution or indemnification against the co-defendant or third-party defendant, and this has been reduced to judgment.

In cases where the defendant-judgment debtor has a cause of action for contribution or indemnification that has not been reduced to judgment, the plaintiff-judgment creditor may attach or take an assignment of this cause of action and prosecute it in their own name or in the name of the defendant-judgment debtor. However, direct recovery against a third-party defendant is not authorized if the third-party claim would have been barred by Section 11 of the Worker's Compensation Law.

CPLR 1405 also protects the ability of a plaintiff-judgment creditor to enforce their rights against a third party, even if the claim or cause of action is extinguished in the bankruptcy of a defendant-judgment debtor. This ensures that plaintiffs can still seek to recover their judgment from a third party if the defendant-judgment debtor becomes insolvent.

This will be permitted if the judgement debtor has a claim for contribution or indemnification against the third party

The New York State Senate Bill S5152, which adds a new Section 1405 to the Civil Practice Law and Rules (CPLR), introduces significant changes to the process of recovering judgments against third-party defendants. This new legislation aims to protect the rights of plaintiffs and ensure they can collect judgments owed to them, even in cases where the defendant-judgment debtor is insolvent or faces bankruptcy.

Under CPLR 1405, a plaintiff is permitted to recover and collect an unsatisfied judgment or a portion of a judgment against a third-party defendant or co-defendant if certain conditions are met. Firstly, the plaintiff must have entered a judgment against the defendant, and this judgment must remain unsatisfied 30 days after being served on the defendant-judgment debtor. Additionally, the defendant-judgment debtor must have a cause of action for contribution or indemnification against the third-party defendant or co-defendant. This cause of action can be based on contractual or common law indemnification.

In such cases, the plaintiff-judgment creditor is empowered to take several actions. They may attach or take an assignment of the cause of action for contribution or indemnification from the defendant-judgment debtor. The plaintiff can then prosecute this cause of action in their own name or in the name of the defendant-judgment debtor. It is important to note that direct recovery against a third-party defendant is not authorized if the claim would have been barred by the Worker's Compensation Law.

By allowing plaintiffs to step into the shoes of the defendant-judgment debtor and pursue claims for contribution or indemnification, CPLR 1405 provides a powerful tool to ensure that plaintiffs can obtain the judgments owed to them. This is especially crucial in cases where the defendant-judgment debtor is insolvent or facing bankruptcy, as it prevents the plaintiff from being left without a remedy to collect their judgment.

In conclusion, CPLR 1405 offers a novel approach to addressing the challenges faced by plaintiffs in recovering judgments. By permitting plaintiffs to seek contribution or indemnification from third-party defendants, this legislation strengthens the rights of plaintiffs and ensures they can obtain the financial relief they are entitled to, regardless of the financial situation of the original defendant.

This will not be authorised if the claim would have been barred by the Worker's Compensation defence

The New York legislature passed several measures in June 2019 that would alter civil jurisprudence in the state. One of these measures was the creation of a new statute, CPLR 1405, which will take effect immediately and will permit plaintiffs to recover and collect an unsatisfied judgement (or partial judgement) against a third-party defendant or co-defendant if the direct defendant-judgement debtor has a claim for contribution or indemnification against the co-defendant or third-party defendant. However, this direct recovery will not be authorised if the claim would have been barred by the Workers' Compensation defence.

The Workers' Compensation Law provides for compensation and medical care to employees who are injured on the job. It is a form of insurance that provides wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence. The Workers' Compensation Law varies by state, and each state has its own system for handling claims and disputes.

The Workers' Compensation defence is a strategy used by employers and their insurance companies to dispute or deny workers' compensation claims. There are several common defences that employers may use to try to deny or reduce their liability in a workers' compensation claim. These include:

• Self-inflicted injuries: In rare cases, employers may argue that the employee intentionally injured themselves to collect compensation money.
• Negligence or failure to follow rules: Employers may argue that the employee's injuries resulted from their own negligence or failure to follow safety rules.
• "Horseplay": If the employee was acting rowdy or clowning around before the injury, the employer may argue that the employee's behaviour contributed to or caused the injury.
• Intentional misconduct: This is similar to "horseplay" but suggests that the employee purposefully violated safety rules, even if they did not intend to sustain an injury.
• Intoxication or drug use: Employers may try to claim that the employee's injury was caused by working under the influence of drugs or alcohol.
• Medical causation: If the employee has a pre-existing condition or other physiological factors that could have caused the injury, the employer may try to use this to deny the claim.
• Failure to notify the employer: In most states, employees have a limited time, such as 120 days, to report an injury to their employer. If they fail to do so, the employer may use this as a defence against the claim.
• Failure to follow the statute of limitations: There is often a time limit, such as three years, for filing a workers' compensation claim. If the employee misses this deadline, the employer may use it as a defence.
• No connection to employment: If the injury occurred outside of work hours or in a setting unrelated to the employee's job duties, the employer may argue that it is not their responsibility.

It is important to note that each state has specific laws and regulations regarding workers' compensation, and the above defences may vary in their applicability depending on the jurisdiction.

CPLR 1405 will protect the ability of an injured plaintiff to collect a judgement if the judgement debtor's cause of action is extinguished in bankruptcy

The New York legislature passed several important measures in June 2019, including the creation of a new statute, CPLR 1405, which will take effect immediately. CPLR 1405 will allow plaintiffs, for the first time, to recover and collect an unsatisfied judgment (or partial judgment) against a third-party defendant or co-defendant if the direct defendant-judgment debtor has a claim for contribution or indemnification against them.

This new statute intends to protect the ability of an injured plaintiff to collect a judgment in the event that a defendant-judgment debtor's cause of action or judgment against a third-party wrongdoer is extinguished in bankruptcy, which would otherwise leave the plaintiff with no remedy to collect their judgment.

Under CPLR 1405, plaintiffs will be able to assume the insolvent judgment debtor's claim against the co-defendant or third-party defendant. However, direct recovery will not be authorized if the claim would have been barred by the Worker's Compensation defense.

CPLR 1405 will also apply to all unexpired judgments that have not been fully satisfied as of the date of enactment, ensuring that injured plaintiffs can protect their rights and collect their judgments even if the defendant-judgment debtor files for bankruptcy. This measure is designed to address the concern that successful plaintiffs may have about defendants discharging their debt obligation through personal bankruptcy.

By allowing plaintiffs to recover directly from a third-party defendant, CPLR 1405 will provide a crucial mechanism for injured plaintiffs to obtain the compensation they are owed, even in cases where the defendant-judgment debtor is insolvent or has their debts discharged through bankruptcy.

CPLR 1405 will take effect immediately

The new statute intends to protect the ability of an injured plaintiff to collect a judgement in the event that a defendant-judgement debtor's cause of action or judgement against a third-party wrongdoer is extinguished in bankruptcy, leaving the plaintiff with no remedy to collect their judgement.

The plaintiff's bar is expected to take full advantage of this new provision whenever it applies, and it will generate more motion practice whenever a direct defendant is insolvent or partially insolvent.

CPLR 1405 will also apply to all unexpired judgements that have not been fully satisfied as of the date of enactment. This means that, in cases where a defendant/third-party plaintiff is insolvent and unable to pay the judgement to the plaintiff, the plaintiff could still seek to recover directly the portion of the judgement owed by the third-party defendant to the defendant/third-party plaintiff.

This measure will not alter the substantive law of Workers' 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".

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