Saca v. Canas

28 Misc. 3d 397
CourtNew York Supreme Court
DecidedMay 10, 2010
StatusPublished
Cited by1 cases

This text of 28 Misc. 3d 397 (Saca v. Canas) 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
Saca v. Canas, 28 Misc. 3d 397 (N.Y. Super. Ct. 2010).

Opinion

OPINION OF THE COURT

George J. Silver, J.

In this action to recover for personal injuries allegedly sustained in a motor vehicle accident, defendants Ricardo Canas, Penske Truck Leasing Co., Limited Partnership, Penske Truck Leasing Corporation and Vitamin Shoppe Industries Inc. (the Canas defendants) move pursuant to CPLR 3211 for an order dismissing the complaint of plaintiffs Jose Saca, also known as Jose Sacaabrego, and Patricia Saca (plaintiffs) on res judicata, judicial estoppel, General Obligations Law § 13-101 and statute of limitations grounds. In the alternative, defendants move to amend the caption to reflect the party they claim is the proper plaintiff and the real party in interest to this litigation, Zurich North American Insurance Company (Zurich) and to amend their answer to include the affirmative defense of setoff under General Obligations Law § 15-108. Plaintiffs cross-move pursuant to CPLR 2104 for an order declaring a written stipulation dated November 7, 2007 between the parties to be a valid and enforceable agreement and restoring the matter to the Part 40 trial ready calendar within 30 days of the date of this order.

In a prior underinsured motorist arbitration (UIM arbitration) on December 19, 2007 in New Jersey, plaintiffs were awarded a total of $1,000,000. The arbitration award, dated [400]*400December 24, 2007, declared that codefendant Albert Erskine (Erskine) was 100% liable for the underlying motor vehicle accident. In moving to dismiss the instant action, the Canas defendants argue that plaintiffs were given a full and fair opportunity at the UIM arbitration to litigate and establish some degree of liability on the part of the Canas defendants and failed to do so. The Canas defendants argue that Zurich, as the carrier defending the underinsured motorist claim, also had a full opportunity at the UIM arbitration to litigate the matter and show that the accident was due to the fault of the Canas defendants and not the underinsured driver, Erskine, and likewise failed to do so. The Canas defendants contend that the UIM arbitration award should be given full faith and credit by this court under the doctrine of res judicata and that plaintiffs should not be given a “second bite at the apple” in this forum.

The Canas defendants also argue that the doctrine of judicial estoppel bars the instant action because plaintiffs are adopting a position herein that is contrary to the position they assumed in the UIM arbitration. The Canas defendants argue that plaintiffs are making a mockery of the search for the truth by claiming in this action that the Canas defendants are responsible for the accident after successfully claiming in the UIM arbitration that the accident was entirely Erskine’s fault.

Next, the Canas defendants contend that plaintiffs assignment of his personal injury claim to Zurich after the UIM arbitration runs afoul of General Obligations Law § 13-101 (1) because the release and trust agreement entered into between plaintiffs and Zurich assigns to Zurich plaintiff Jose Saca’s personal injury claim. The Canas defendants also argue that to the extent Zurich is attempting to pursue plaintiffs’ claims as a subrogee, Zurich, as a substitute plaintiff, never commenced its own action and is therefore time-barred by the applicable three-year statute of limitations period.

Finally, the Canas defendants argue that if the instant action is not dismissed, at the very least the caption should be amended to reflect Zurich’s position as the true plaintiff. The Canas defendants claim that the jury that hears this case is entitled to know that Zurich, not an individual, is the real party in interest because, pursuant to the release and trust agreement, it will be Zurich that will recover if an award of damages is made against the Canas defendants. The Canas defendants also move to amend their answer to assert a set-off defense in the amount of $1,000,000, the amount previously recovered by plaintiffs in the UIM arbitration.

[401]*401In support of their cross motion and in opposition to the Canas defendants’ motion, plaintiffs argue that the doctrines of res judicata and judicial estoppel cannot be applied to this matter because counsel for the Canas defendants drafted and signed a stipulation dated November 7, 2007 which states that “the findings and award of the New Jersey UIM arbitration will not be binding on any parties in the New York litigation.” The stipulation further provides that “no testimony used at the arbitration may be used at the trial in New York.” Plaintiffs contend that the Canas defendants are attempting to repudiate this stipulation, which the court notes was not mentioned anywhere in the Canas defendants’ moving papers, because the arbitration award placed no liability on the Canas defendants for the underlying accident. Plaintiffs argue that the stipulation was an arm’s length transaction between experienced counsel, both of whom were well acquainted with the applicable law of each jurisdiction and the legal effect of executing a stipulation in a civil litigation.

In opposition to the cross motion and in further support of their motion, the Canas defendants argue that the doctrines of res judicata and judicial estoppel cannot be waived by stipulation. The Canas defendants also contend that plaintiffs and Zurich had a full and fair opportunity to litigate their claims in the UIM arbitration but voluntarily chose not to do so. More importantly, the Canas defendants contend that the stipulation was the product of misrepresentations by plaintiffs’ counsel that the UIM arbitration would dispose of the instant litigation. The Canas defendants claim that the unmistakable purpose and design of the stipulation was for plaintiffs to avoid the risk, burden and expense of going forward with the instant action by proceeding with the UIM arbitration and its relaxed rules of procedure and evidence. Thus, the Canas defendants contend that they should be relieved of the terms of the stipulation. Finally, the Canas defendants reiterate their argument that the release and trust agreement entered into by plaintiffs with Zurich is an impermissible assignment of plaintiff Jose Saca’s personal injury claim, that the caption of this action should be amended to reflect Zurich’s status as the real party in interest and that they should be permitted to amend their answer to assert the set-off defense under General Obligations Law § 15-108 because, regardless of whether it was in the form of an arbitration award or a settlement, a payment of $1,000,000 was made to plaintiffs on behalf of Erskine due to his negligence. The [402]*402Canas defendants also contend that restoring the matter to the trial calendar is inappropriate because discovery is still outstanding.

Discussion

Whenever the enforceability of a stipulation among parties in a civil case is put in issue, a court must begin its analysis with the recognition that the Court of Appeals has long favored and encouraged the fashioning of stipulations as a means of expediting and simplifying the resolution of disputes. (Salesian Socy. v Village of Ellenville, 41 NY2d 521, 525-526 [1977].) The Court of Appeals has repeatedly held that, unless public policy is affronted, parties to a civil dispute are free to chart their own litigation course (T. W. Oil v Consolidated Edison Co. of N.Y., 57 NY2d 574, 579-580 [1982]; Rector, Church Wardens & Vestrymen of St. Bartholomew’s Church in City of N.Y. v Committee to Preserve St. Bartholomew’s Church, 56 NY2d 71, 76 [1982]; Martin v City of Cohoes, 37 NY2d 162, 165 [1975]).

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Bluebook (online)
28 Misc. 3d 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saca-v-canas-nysupct-2010.