Hertz Corp. v. Luken

126 A.D.2d 446, 510 N.Y.S.2d 590, 1987 N.Y. App. Div. LEXIS 41600
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 15, 1987
StatusPublished
Cited by18 cases

This text of 126 A.D.2d 446 (Hertz Corp. v. Luken) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hertz Corp. v. Luken, 126 A.D.2d 446, 510 N.Y.S.2d 590, 1987 N.Y. App. Div. LEXIS 41600 (N.Y. Ct. App. 1987).

Opinion

—Order of the Supreme Court, New York County (Harold Baer, Jr., J.), entered April 9, 1986, which granted plaintiffs motion for renewal and reargument of defendant’s motion to dismiss the complaint, and, upon renewal and reargument, adhered to its order entered February 14, 1986 dismissing the complaint, is modified, on the law and the facts, to the extent of reinstating the complaint, and otherwise affirmed, with costs to plaintiff. Appeal from the order entered on February 14, 1986 is dismissed as subsumed in the appeal from the order entered April 9, 1986, without costs.

Defendant Luken, a Florida resident, rented a car from plaintiff Hertz Corporation on February 13, 1981 while in New York. Under the rental agreement, Luken agreed to indemnify Hertz for any liability in excess of $100,000 arising out of his use of the vehicle. On February 16, 1981, Luken was involved in an accident at LaGuardia Airport resulting in injuries to one Henry Hymoff. In April 1981, Hymoff commenced a personal injury action against Luken and Hertz, wherein Luken was represented by counsel appointed by an insurer covering him for an additional $600,000 over and above the coverage afforded him in the rental agreement with Hertz.

During pretrial proceedings, Hertz noticed Luken’s deposition, and, in connection therewith, paid him $344 by check as a witness fee. A notation on the face of the check stated: "Re: Witness fee Hymoff vs. Hertz Corp., et al”. Also on the face of the check was a second notation, described by Hertz as a "rubber stamp endorsement”, that the check was "in full settlement of all Claims arising from an accident at or near LaGuardia Airport, N.Y. on or about 02/16/1981”. And, on the back of the check was still another notation, also apparently a rubber stamp, stating: "The endorsement of this draft constitutes a full release with respect to any and all claims arising out of the accident which occurred on the date indicated on the face hereof.”

On December 30, 1982, Luken drew a check to Hertz in the amount of $12.44. On the front and back were facsimiles of the "full settlement” and "full release” legends appearing on the front and back of Hertz’s check to Luken. According to Hertz, Luken has stated in an affidavit (not included in the [447]*447record) that "[t]his check represented a refund of an over-reimbursement of your affiant’s out of pocket expenses concerning the Hymoff lawsuit.”

After jury selection, the Hymoff action was settled for $1,850,000. Luken’s excess insurer paid $600,000, the face amount of its policy; Hertz paid $100,000, the coverage afforded Luken under the rental agreement, and, in addition, the balance of $1,150,000. The instant action is brought by Hertz against Luken to recover this latter sum.

After settlement of the Hymoff action, the following transpired:

May 10, 1983: Hertz writes a letter to Luken in Florida demanding indemnification as per the rental agreement.

May 19, 1983: Luken files a complaint with a Florida court (apparently, in Florida, an action is commenced by the filing of a complaint) seeking a declaratory judgment "precluding [Hertz] from asserting any indemnification action against [Luken]” by reason of the "mutual releases exchanged” between the parties "in the form of checks endorsed and negotiated pursuant to the terms of said checks”.

June 29, 1983: Hertz is served with the complaint in Luken’s Florida action.

July 11, 1983: Luken is served with Hertz’s summons and complaint in this action.

July 12, 1983: Hertz moves to dismiss the Florida action on the ground of the pendency of the New York action.

September 22, 1983: Luken moves for an order pursuant to CPLR 3211 (a) (7) dismissing the New York action on the ground that the indemnification clause of the rental agreement was a contract of adhesion violative of public policy.

October 20, 1983: The Florida court denies Hertz’s motion to dismiss the Florida action, giving no reasons.

November 10, 1983: Hertz serves an answer in the Florida action counterclaiming for the same relief sought in the New York action.

January 10, 1984: Special Term denies Luken’s motion to dismiss the New York action.

January 16, 1984: Luken moves for summary judgment in the Florida action, which motion remains undecided.

February 22, 1984: Luken serves an answer in the New York action containing affirmative defenses alleging, inter alia, release and another action pending in Florida.

[448]*448January 5, 1985: Hertz files a note of issue in the New York action.

October 10, 1985: Luken moves for an order pursuant to CPLR 3211 (a) (4) dismissing the New York action on the ground of another action pending, which motion is opposed by Hertz on the ground that it is barred by the single motion rule of CPLR 3211 (e), and that New York is a better forum than Florida in which to try the issues raised in the two lawsuits.

January 6, 1986: The New York action is called on the calendar of an IAS Part.

January 8, 1986: Luken serves a "Notice of Hearing” in the Florida action for a "bifurcated trial”.

January 16, 1986: The Florida court denies without prejudice Luken’s "Motion to Bifurcate and Set Trial”, giving no reasons.

January 22, 1986: The New York action is again called in the IAS Part, where a motion by Luken for a jury trial is denied and a trial date of February 19, 1986 is set.

February 5, 1986: Special Term grants Luken’s motion to dismiss the New York action on the ground of another action pending.

February 28, 1986: Hertz appeals from Special Term’s order dismissing the action.

April 9, 1986: Special Term grants Hertz’s motion to renew and reargue, but adheres to its decision to dismiss on the ground of another action pending.

April 10, 1986: Hertz appeals from Special Term’s order granting renewal and reargument but adhering to its prior decision to dismiss.

May 1, 1986: The parties stipulate to stay all proceedings pending this appeal, which stipulation is so ordered by this court.

A preanswer motion to dismiss based on one of the grounds set forth in CPLR 3211 (a) does not effect a waiver of the other grounds set forth in CPLR 3211 (a), except for those relating to personal and in rem jurisdiction set forth in CPLR 3211 (a) (8) and (9). If the preanswer motion is denied, these other grounds can then be raised as affirmative defenses in the answer, and moved upon after issue is joined (CPLR 3211 [e]). Thus, because Luken made a preanswer motion pursuant to CPLR 3211 (a) (7), the single motion rule of CPLR 3211 (e) prevented him from making a second preanswer motion on [449]*449the ground of another action pending or, for that matter, any of the other grounds listed in CPLR 3211 (a); the single motion rule, however, did not prevent Luken, once issue was joined, from moving to dismiss on the ground of another action pending, or any of the other grounds listed in CPLR 3211 (a), except for those going to jurisdiction. As one noted commentator puts it: “If D has a number of objections listed in CPLR 3211 (a), he can raise them all by a dismissal motion, or instead plead all of them as defenses in the answer. Or, he may divide them up—taking some by motion and, if the motion does not succeed, pleading the rest by answer.” (Siegel, NY Prac § 274.)

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Bluebook (online)
126 A.D.2d 446, 510 N.Y.S.2d 590, 1987 N.Y. App. Div. LEXIS 41600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hertz-corp-v-luken-nyappdiv-1987.