Sanango v. 200 East 16th Street Housing Corp.

15 A.D.3d 36, 788 N.Y.S.2d 314, 2004 N.Y. App. Div. LEXIS 15637
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 28, 2004
StatusPublished
Cited by13 cases

This text of 15 A.D.3d 36 (Sanango v. 200 East 16th Street Housing Corp.) 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
Sanango v. 200 East 16th Street Housing Corp., 15 A.D.3d 36, 788 N.Y.S.2d 314, 2004 N.Y. App. Div. LEXIS 15637 (N.Y. Ct. App. 2004).

Opinion

OPINION OF THE COURT

Friedman, J.

On July 2, 1998, plaintiff, an undocumented alien, sustained serious injuries when he fell 15 feet from a ladder while he was working as a laborer on a construction project. Thereafter, plaintiff commenced this Labor Law § 240 (1) action against 200 East 16th Street Housing Corporation (200 East), the owner of the work site, and 200 East commenced a third-party action for indemnification against Tower Building Restoration, Inc. (Tower), the contractor that had been plaintiffs employer. The instant appeal is taken by 200 East and Tower from a judgment that, based on a jury verdict, awards plaintiff substantial damages for his injuries. While the vast majority of the damages awarded to plaintiff are for pain and suffering ($2,452,000 before structuring pursuant to CPLR article 50-B), the judgment also grants plaintiff a recovery of $96,000 for lost earnings. This award is based on evidence that was presented to the jury, over objection, of the wages that plaintiff allegedly would have been able to earn in the United States but for his injuries.

Although we otherwise affirm plaintiff’s judgment, we find that the appeal has merit insofar as it seeks reversal of the award for lost earnings. It is conceded that plaintiff is entitled, without regard to his immigration status, to recover damages for items such as pain and suffering and medical expenses. The [38]*38issue presented here, however, is whether, in light of the federal Immigration Reform and Control Act of 1986 (IRCA) (8 USC § 1324a et seq., as added by Pub L 99-603, 100 US Stat 3359, as amended) and the recent decision of the United States Supreme Court in Hoffman Plastic Compounds, Inc. v National Labor Relations Bd. (535 US 137 [2002]), plaintiffs status as an undocumented alien bars or limits his recovery for lost earnings. As more fully discussed below, the clear implication of Hoffman is that a remedy based on the wages plaintiff might have earned unlawfully in the United States “would unduly trench upon explicit statutory prohibitions critical to federal immigration policy, as expressed in IRCA” (535 US at 151). Thus, we conclude that the motion by 200 East and Tower to exclude plaintiffs evidence on the issue of lost earnings should have been granted to the extent of limiting the evidence admissible on that issue to proof of the wages that, but for his injuries, plaintiff would have been able to earn in his country of origin. Accordingly, we vacate the award for lost earnings, and remand for a new trial, consistent with this opinion, solely on that issue.

Initially, we reject plaintiffs contention that 200 East and Tower failed to preserve the issue of the extent to which IRCA preempts the claim for lost earnings. The record reflects that, on July 24, 2002, just before the jury was sworn, the defense made a motion in limine to preclude the introduction of any evidence of lost earnings on two grounds, which were (1) that, under IRCA and Hoffman (supra), plaintiff, as an undocumented alien, was precluded from recovering such damages (the preemption argument), and (2) that plaintiffs anticipated testimonial evidence in support of the claim for lost wages was insufficient to support an award, due to the absence of any documentary corroboration (the sufficiency argument). The court did not immediately rule on any of the in limine motions, which were again brought up on the record after the jury was excused on July 31, 2002. At that time, defense counsel restated the grounds adduced in support of the motion to preclude evidence of loss of earnings. After referring to the preemption argument (“Does your Honor think that the U.S. Supreme Court case that we cited should be extended to lost income claims in civil tort cases?”), defense counsel stated, “However you [the court] rule on that is fine with us,” and then went on to address the sufficiency argument. Thereafter, the court asked defense counsel, “So you see two issues?”, to which defense counsel responded, “Yes.” In subsequently denying the defense motion in limine, [39]*39the court expressly addressed and rejected the preemption argument.

Plaintiffs interpretation of defense counsel’s “fine with us” statement as a withdrawal of the preemption argument is untenable. The statement is readily explained as an expression of the defense position that, even if the preemption argument were rejected, the lost earnings claim should be dismissed based on the sufficiency argument. Moreover, the subsequent colloquy between the court and defense counsel, clarifying that the defense motion in limine presented “two issues,” as well as the court’s ultimate express rejection of the preemption argument in denying the motion, plainly reflect that neither the court nor defense counsel understood the preemption argument to have been withdrawn. Accordingly, the preemption issue in this case is preserved.

Turning to the substance of the preemption issue, the starting point of our analysis is IRCA, which the Supreme Court described as follows in Hoffman (535 US at 147-148 [footnote omitted]):

“In 1986,. . . Congress enacted IRCA, a comprehensive scheme prohibiting the employment of illegal aliens in the United States. § 101 (a) (1), 100 Stat. 3360, 8 U.S.C. § 1324a. As we have previously noted, IRCA ‘forcefully’ made combating the employment of illegal aliens central to ‘[t]he policy of immigration law.’ INS v. National Center for Immigrants’ Rights, Inc., 502 US 183, 194, and n. 8 (1991). It did so by establishing an extensive ‘employment verification system,’ [8 USC] § 1324a (a) (1), designed to deny employment to aliens who (a) are not lawfully present in the United States, or (b) are not lawfully authorized to work in the United States, § 1324a (h) (3). This verification system is critical to the IRCA regime. To enforce it, IRCA mandates that employers verify the identity and eligibility of all new hires by examining specified documents before they begin work. § 1324a (b). If an alien applicant is unable to present the required documentation, the unauthorized alien cannot be hired. § 1324a (a) (1).
“Similarly, if an employer unknowingly hires an unauthorized alien, or if the alien becomes unauthorized while employed, the employer is compelled to discharge the worker upon discovery of the worker’s [40]*40undocumented status. § 1324a (a) (2). Employers who violate IRCA are punished by civil fines, § 1324a (e) (4) (A), and may be subject to criminal prosecution, § 1324a (f) (1). IRCA also makes it a crime for an unauthorized alien to subvert the employer verification system by tendering fraudulent documents. § 1324c (a). . . . Aliens who use or attempt to use such documents are subject to fines and criminal prosecution. 18 U.S.C. § 1546 (b). . . .
“Under the IRCA regime, it is impossible for an undocumented alien to obtain employment in the United States without some party directly contravening explicit congressional policies. Either the undocumented alien tenders fraudulent identification, which subverts the cornerstone of IRCA’s enforcement mechanism, or the employer knowingly hires the undocumented alien in direct contradiction of its IRCA obligations.”

The question in Hoffman

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Bluebook (online)
15 A.D.3d 36, 788 N.Y.S.2d 314, 2004 N.Y. App. Div. LEXIS 15637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanango-v-200-east-16th-street-housing-corp-nyappdiv-2004.