Iazzetti v. City of New York

723 N.E.2d 81, 94 N.Y.2d 183, 701 N.Y.S.2d 332, 1999 N.Y. LEXIS 3750
CourtNew York Court of Appeals
DecidedDecember 2, 1999
StatusPublished
Cited by23 cases

This text of 723 N.E.2d 81 (Iazzetti v. City of New York) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iazzetti v. City of New York, 723 N.E.2d 81, 94 N.Y.2d 183, 701 N.Y.S.2d 332, 1999 N.Y. LEXIS 3750 (N.Y. 1999).

Opinion

OPINION OF THE COURT

Chief Judge Kaye.

What is the proper statutory predicate for collateral *186 source reductions in personal injury and wrongful death actions brought by public employees against their employers? The answer turns on whether CPLR 4545 (c) — enacted after CPLR 4545 (b), and applicable to “any action brought to recover damages for personal injury” — repealed subdivision (b) by implication. We conclude that there has been no implied repeal, that CPLR 4545 (b) governs and that the Appellate Division erred in applying CPLR 4545 (c) to reduce plaintiffs’ jury verdict for future lost earnings.

Plaintiff Mario Iazzetti, an employee of the New York City Department of Sanitation, sustained a disabling back injury when he stepped into an unprotected drain opening at the garage where he worked. At the time of the injury, plaintiff was 40 years old and had worked at the Department of Sanitation for approximately 18 years. The Board of Trustees of the New York City Employees’ Retirement System subsequently granted plaintiff Accident Disability Retirement status. Under the terms of his retirement plan, plaintiff receives a pension equal to three quarters of his last annual salary, as well as an annuity based on his accumulated contributions to the retirement system (Administrative Code of City of NY § 13-175 [b]).

Plaintiff and his wife commenced this personal injury action against the City of New York, alleging that the Department of Sanitation had negligently created the dangerous condition that caused his injury. On October 2, 1992, the jury rendered a verdict for plaintiffs, awarding $200,000 in past lost earnings and benefits, $25,000 in past pain and suffering, $750,000 in future lost earnings and benefits, $250,000 in future lost pension, and $25,000 in future pain and suffering. The jury apportioned 80% of the responsibility for the accident to the City and 20% to plaintiff.

After the verdict, the City moved pursuant to CPLR 4545 for a reduction in plaintiffs’ awards for past and future loss of earnings and pension. Following a collateral source hearing, Supreme Court determined that CPLR 4545 (b) entitled the City to offset the verdict for past loss of earnings by the amount plaintiff had received from his accident disability retirement pension. Because the pension had already paid plaintiff more than the verdict award for past loss of earnings, Supreme Court deleted this component of the award. The court refused, however, to reduce the jury award for future losses, on the ground that CPLR 4545 (b) does not allow defendants to offset such losses.

On appeal, the Appellate Division held that Supreme Court should have applied CPLR 4545 (c), not 4545 (b). Because *187 subdivision (c) allows defendants to offset both past and future economic losses, Supreme Court on remand further reduced the verdict by the amount of collateral source reimbursement plaintiff will receive for future losses. Applying Oden v Chemung County Indus. Dev. Agency (87 NY2d 81), Supreme Court concluded that the City adequately demonstrated the requisite correspondence between the collateral source payment (plaintiffs accident disability retirement pension) and the items of future pecuniary loss to be replaced (plaintiffs future loss of earnings and pension). Because the amount plaintiff is to receive from the accident disability pension exceeds the amount of the jury award for his future losses, the court modified the verdict by reducing the awards for those losses to zero. Plaintiffs appealed, and the Appellate Division affirmed.

Because we conclude that CPLR 4545 (b) survived the enactment of CPLR 4545 (c) and governs the availability of collateral source reductions in this case, we now reverse.

At common law, the “collateral source rule” precluded the reduction of a personal injury award by the amount of compensation a plaintiff received from a source other than the tortfeasor (see, Bryant v New York City Health & Hosps. Corp., 93 NY2d 592, 605; Oden v Chemung County Indus. Dev. Agency, supra, 87 NY2d, at 85). In 1975, the Legislature began to place significant limitations on this rule. That year, CPLR 4010 was added to allow juries to consider evidence of collateral source payments when determining past economic loss awards in medical malpractice cases (L 1975, ch 109, § 10). In 1981, the Legislature made reduction for compensation from collateral sources mandatory in medical malpractice cases and imposed responsibility for the reductions on the court (L 1981, ch 269).

In 1984, CPLR 4010 was repealed and reenacted as CPLR 4545 (a) (L 1984, ch 701). At the same time, the Legislature enacted CPLR 4545 (b), which extended collateral source offsets to past economic loss awards in personal injury and wrongful death actions brought by public employees against their employers (L 1984, ch 701, § 2). Subdivision (b) provides that, when a public employee brings such an action to recover for economic loss, the court must reduce the amount of an award for a cost or expense that “was replaced or indemnified, in whole or in part, from a collateral source provided or paid for, in whole or in part, by the public employer.” When adjusting an award pursuant to this subdivision, the court adds back any amounts contributed by the injured employee to the collateral source.

*188 In 1985, CPLR 4545 (a) was revised to require collateral source reductions for both medical and dental malpractice awards, and to apply to future as well as past economic losses (L 1985, ch 294, § 8). The following year, the Legislature again amended subdivision (a), by bringing podiatric malpractice actions within its scope (L 1986, ch 485, § 9). A new subdivision (c) was also added, providing:

“In any action brought to recover damages for personal injury, injury to property or wrongful death, where the plaintiff seeks to recover for the cost of* * * economic loss, evidence shall be admissible for consideration by the court to establish that any such past or future cost or expense was or will, with reasonable certainty, be replaced or indemnified, in whole or in part, from any collateral source” (L 1986, ch 220, § 36).

Pursuant to subdivision (c), the court must reduce the award by any amount that was or will be paid by a collateral source, “minus an amount equal to the premiums paid by the plaintiff for such benefits for the two-year period immediately preceding the accrual of such action and minus an amount equal to the projected future cost to the plaintiff of maintaining such benefits” (CPLR 4545 [c]).

The primary distinction between (b) and the other two subdivisions of CPLR 4545 is that (b) permits damages awards to be offset only by the collateral source reimbursement of past costs or expenses. Because the Legislature did not amend subdivision (b) when it amended (a) and added (c) — both of which now provide for the offset of future loss reimbursements — it is clear that “the Legislature simply did not intend to permit reductions for future collateral-source payments in actions governed by subdivision (b)” (Ryan v City of New York, 79 NY2d 792, 794).

Subdivision (b) is unique in two other ways.

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Bluebook (online)
723 N.E.2d 81, 94 N.Y.2d 183, 701 N.Y.S.2d 332, 1999 N.Y. LEXIS 3750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iazzetti-v-city-of-new-york-ny-1999.