Peritore v. Niagara Mohawk Power Corp.

4 Misc. 2d 202, 157 N.Y.S.2d 723, 1956 N.Y. Misc. LEXIS 1294
New York Supreme Court·Decided December 12, 1956·Published·Cited by 1 cases

Opinion

Carroll M. Roberts, J.

This is a motion by the defendant to amend its answer in order to plead as an affirmative defense the fact that plaintiff’s cause of action has been assigned to his compensation insurance carrier by reason of plaintiff’s failure to institute the action within the time limited pursuant to section 29 of the Workmen’s Compensation Law.

The proposed amended answer alleges that the plaintiff was an employee of Arute Brothers, Inc., at the time of his injury on July 27, 1953; that thereafter compensation awards were made to and received by the plaintiff; that on or about April 8, 1955 a letter was mailed the plaintiff by the compensation carrier pursuant to section 29 of the Workmen’s Compensation Law, advising that unless he commenced his third-party action on or before May 14, 1955, said cause of action would be assigned by operation of law; that the third-party action was thereafter commenced on September 26,1955. It appears from the moving papers that the defendant did not learn of the notice which had been sent to the plaintiff pursuant to section 29 of the Workmen’s Compensation Law until the 22d day of October, 1956. The notice of motion is dated October 30, 1956 and was served on the attorneys for the plaintiff on November 2, 1956. The defendant, upon learning of the facts entitling it to plead the proposed defense, acted with promptness and diligence in making the motion. Under these circumstances and under the facts pleaded the proposed amendment is proper and would normally be granted as a matter of course. (Lehman v. Hartke, 286 App. Div. 661; Juba v. General Bldrs. Supply Corp., 284 App. Div. 891; Ruopoli v. Geraci & Castagna, 140 N. Y. S. 2d 464.)

Plaintiff here opposes the granting of the motion upon various grounds which it is claimed indicate that the affirmative defense, which defendant proposes to plead, is clearly bad.

It is claimed in the first place that this action was commenced within the time limited by section 29 of the Workmen’s Com[204] pensation Law, and hence there was no assignment of the cause of action to the compensation carrier. Subdivision 1 of section 29 provides that such action must be commenced not later than six months after the awarding of compensation or not later than nine months after the enactment of any law establishing a new remedy and, in any event, before the expiration of one year from the date such action accrues. Subdivision 2 of this section (as amd. by L. 1951, ch. 527) provides that the failure to commence an action pursuant to subdivision 1 shall not operate as an assignment unless the carrier shall have notified the claimant in writing at least 30 days prior to the expiration of the time limited for the commencement of the action by subdivision one that such failure shall operate as an assignment. If the carrier shall fail to give such notice the time limited for the commencement of an action by subdivision 1 shall be extended until 30 days after the carrier shall have notified the claimant in writing that failure to commence an action within 30 days after the mailing of such notice shall operate as an assignment of said cause of action. The accident out of which this cause of action arose occurred July 27, 1953, and the one-year limitation prescribed in subdivision 1 within which the action must be commenced expired July 27, 1954. There is no claim that the carrier served any notice upon the plaintiff prior to said date. The time to commence the action was therefore, pursuant to subdivision 2, extended until 30 days after written notice by the carrier. The proposed amended answer alleges that the required notice was mailed on or about April 8, 1955. The letter constituting the notice was dated April 8,1955, but the envelope in which it was mailed was postmarked April 22, 1955. The 30-day period would expire either on May 8 or May 22, depending upon the date of mailing. The exact date of mailing is not here important as the summons and complaint were served on September 26, 1955, well beyond the 30-day period. Plaintiff claims, however, that the action was commenced by delivery of the summons and complaint to the Sheriff on May 5,1955, which was in any event within the 30-day period.

Plaintiff in support of his contention that the action was commenced on May 5, 1955, relies upon section 17 of the Civil Practice Act which in substance provides that the delivery of the summons to a Sheriff is equivalent to the commencement of the action ‘ ‘ within the meaning of each provision of this act which limits the time for commencing an action ”. (Emphasis supplied.) The time limited for commencement of the present action was, however, fixed by section 29 of the Workmen’s Compensation Law, and not by any provision of the Civil Practice [205] Act. Section 17 of the latter act, therefore, has no application here. (Weingarten v. Cohen, 193 Misc. 566, revd. on other grounds 275 App. Div. 253, affd. 300 N. Y. 528; Duffy v. Thames Trading Co., 66 N. Y. S. 2d 579.) Even if section 17 of the Civil Practice Act here applied, it would not avail the plaintiff as it is specifically provided that to entitle a plaintiff to the benefit of the section, delivery of the summons to an officer must be followed by making service within 60 days after the expiration of the time limited for the actual commencement of the action. Assuming the notice was not mailed until April 22, 1955, the latest date for the commencement of the action was May 22, 1955, but service was not made until September 26, 1955, more than 60 days thereafter.

Plaintiff claims in the second place that the proposed defense in the amended answer is bad because the carrier filed a notice of lien and thereby waived the benefit of the assignment. The assertion of a lien by the carrier is in no way inconsistent with its subsequent assertion of ownership of the cause of action and constitutes no basis for the denial of an amendment to an answer pleading such assignment as a defense. (Olker v. Salomone, 283 App. Div. 948, motions for reargument and for leave to appeal to the Court of Appeals denied 283 App. Div. 1103.)

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Peritore v. Niagara Mohawk Power Corp., 4 Misc. 2d 202, 157 N.Y.S.2d 723, 1956 N.Y. Misc. LEXIS 1294 (N.Y. Super. Ct. 1956).

4 Misc. 2d 202 (Peritore v. Niagara Mohawk Power Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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