Doubrovinskaya v. Dembitzer

20 Misc. 3d 440
CourtNew York Supreme Court
DecidedMay 28, 2008
StatusPublished
Cited by1 cases

This text of 20 Misc. 3d 440 (Doubrovinskaya v. Dembitzer) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doubrovinskaya v. Dembitzer, 20 Misc. 3d 440 (N.Y. Super. Ct. 2008).

Opinion

OPINION OF THE COURT

Jack M. Battaglia, J.

At the beginning of the liability phase of this bifurcated negligence action, plaintiff Irina Doubrovinskaya and defendant Naftali Z. Dembitzer agreed on the record (see CPLR 2104) that the jury’s verdict on liability would resolve the entire action. As will be described more specifically, plaintiff would have received as damages for her injuries an amount determined by the “percentage point of liability found against the defendant,” with a “minimum of $25,000, a maximum of $100,000.”

On February 13, 2008, the jury returned a verdict in which it answered in the affirmative to the question, “Was defendant Naftali Z. Dembitzer negligent,” and in the negative to the question, “Was the negligence of defendant Naftali Z. Dembitzer a substantial factor in bringing about the accident.” Plaintiff moves to set aside the verdict as contrary to the weight of the evidence. (See CPLR 4404 [a].) Defendant insists that the court “has no power to set aside this verdict” (see affirmation [442]*442in opposition ¶ 9), having been “stripped of all power affecting a jury determination to which the parties are bound” (id. 1i 29), by reason of the agreement as to damages placed on the record at trial.

That agreement, placed on the record by defendant’s counsel, is:

“It is hereby stipulated and agreed by and between the parties and by the attorneys of record for the parties that the full value of all claims arising out of the accident of January 24, 2006 will be governed by a $100,000 to $25,000 high-low agreement. The plaintiff will receive a minimum of $25,000, a maximum of $100,000. Plaintiff will receive $2500 per each percentage point of liability found against the defendant.
“For example, defendant 100 percent at fault, plaintiff will receive $100,000.
“Defendant 25 percent at fault, plaintiff will receive $62,500.
“If the jury determines that the defendant is zero percent at fault, the plaintiff will still receive $25,000.
“The amount to be paid includes all costs, interests and disbursements if any.
“Neither side will enter judgment. Plaintiff will provide a stipulation of discontinuance and a release. The attorneys for the parties acknowledge that they have the authority of their respective clients to enter into this stipulation.”

Subsequently, in allocating the agreement with plaintiff, her counsel characterized the “understanding . . . reached with the defendant in this case”: “you would receive [at] the most $100,000, and the least, $25,000 . . . you would get $2500 for each percent of negligence against the defendant up to the maximum of 100,000 [sic] or the minimum of $25,000.” No objection was made to counsel’s characterization of the agreement.

The dispute on this motion, in the first instance, is whether plaintiff may make it at all. There was no express agreement that there would be no posttrial motions, nor an express agreement as to the consequence if the jury’s verdict neither specified a “percent of negligence” nor established that defendant was “zero percent at fault.” Even if “at fault” is [443]*443understood as encompassing both lack of reasonable care and proximate cause, the jury only specified that defendant’s lack of care was not a “substantial factor” in bringing about the accident, not that its contribution was “zero.”

Neither party contends that the settlement agreement was not an agreement at all, and therefore unenforceable, because it lacks a material term; nor does either party contend that a condition necessary to the enforceability of the agreement— namely, a verdict that either established that defendant was “zero percent at fault” or that specified a “percent of negligence” — did not occur. (See e.g. Joseph v City of New York, 15 Misc 3d 1136[A], 2007 NY Slip Op 51008[U] [Sup Ct, Kings County 2007].)

“A stipulation of settlement is a contract, enforceable according to its terms” (see McKenzie v Vintage Hallmark, 302 AD2d 503, 504 [2d Dept 2003]), and “subject to principles of contract construction” (see Hotel Cameron, Inc. v Purcell, 35 AD3d 153, 155 [1st Dept 2006]). “Where ... a party seeks to enforce the terms of [a] stipulation [of settlement], a court must effectuate the parties’ intent”; “[w]here the stipulation’s terms are unambiguous, the parties’ intent must be gleaned from the plain meaning of the words used by the parties.” (Vider v Vider, 46 AD3d 673, 674 [2d Dept 2007].)

Here, the question is whether the “plain meaning of the words used by the parties” (id.) when their agreement was placed on the record evinced an intent, as defendant would have it, that no postverdict motion would be made. If they do not, then the court must consider other available evidence of the parties’ intent as to the making of postverdict motions. Neither party contends that the availability of postverdict motions was discussed.

“A high-low agreement is a tool commonly used in litigation that guarantees the plaintiff a minimal recovery while concomitantly capping a defendant’s potential exposure.” (Matter of Eighth Jud. Dist. Asbestos Litig., 8 NY3d 717, 721 [2007].) “[H]igh-low agreements are generally favored by courts, attorneys, and litigants as they assure a minimally-acceptable recovery to plaintiffs in the event of an unexpectedly small verdict or a defense verdict, while protecting defendants against runaway verdicts.” (Cunha v Shapiro, 42 AD3d 95, 98 [2d Dept 2007].) “Parties entering into high-low agreements are free to craft the terms of their agreement on the record in any manner that is mutually acceptable to them.” (Id. at 104.)

[444]*444Had the parties here stated that there would be no posttrial motions or appeals (see id. at 99-100), that would be the end of it. Nor would a posttrial motion or appeal be entertained if, in the absence of express agreement, the record were clear that such was the parties’ intent. (See Ogu v Faulkner, 265 AD2d 469, 469 [2d Dept 1999]; see also Esposito v Wilson, 308 AD2d 432, 432 [2d Dept 2003].) A court might even imply such an intent if it were “universally understood” to be part of a high-low agreement. (See Torres v Livorno Rest. Corp., 221 AD2d 197, 197 [1st Dept 1995].)

Defendant does not contend, nor make a showing, that preclusion of a posttrial motion would be “universally understood” as part of a high-low agreement of the kind made here. It may be that, where the high-low agreement specifies the minimum and maximum amount of damages, with the jury asked to specify an amount, a jury verdict as to the amount is exactly what the parties bargained for, and it would be “universally understood” that the agreement would preclude a posttrial motion seeking an amount higher or lower than the amount dictated by the jury’s award. (See Kalkan v University of Rochester, 15 Misc 3d 1139[A], 2007 NY Slip Op 51057[U] [Sup Ct, Monroe County 2007]; McDonnell v Tello, 8 Misc 3d 1003[A], 2005 NY Slip Op 50913[U] [Sup Ct, Westchester County 2005].) But this is not that kind of high-low agreement.

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Related

Doubrovinskaya v. Dembitzer
77 A.D.3d 608 (Appellate Division of the Supreme Court of New York, 2010)

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Bluebook (online)
20 Misc. 3d 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doubrovinskaya-v-dembitzer-nysupct-2008.