Stewart v. Atwood

834 F. Supp. 2d 171, 2013 A.M.C. 177, 2012 U.S. Dist. LEXIS 90836, 2011 WL 5120427
CourtDistrict Court, W.D. New York
DecidedJanuary 17, 2012
DocketNo. 10-CV-00848S(F)
StatusPublished
Cited by7 cases

This text of 834 F. Supp. 2d 171 (Stewart v. Atwood) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Atwood, 834 F. Supp. 2d 171, 2013 A.M.C. 177, 2012 U.S. Dist. LEXIS 90836, 2011 WL 5120427 (W.D.N.Y. 2012).

Opinion

ORDER

WILLIAM M. SKRETNY, Chief Judge.

Presently before this court are Objections to the Magistrate Judge’s Report and Recommendation, and Decision and Order. Having reviewed the Report and Recommendation, and Decision and Order de novo, after considering the Objections to the parties’ submissions, see 28 U.S.C. § 636(b)(1); Fed.R.Civ.P. 72(b); Local Rule 72(a), this Court concurs with the findings and recommendations contained in the Report and Recommendation. Accordingly, the Objections are DENIED, and the Report and Recommendation is ACCEPTED, including the authorities cited and the reasons given therein. Because this Court finds remand appropriate for lack of subject matter jurisdiction, it does not reach the Magistrate Judges alternate ruling in its Decision and Order denying HealthNow’s motion to intervene.

[175]*175IT HEREBY IS ORDERED, that the Report and Recommendation is ACCEPTED. Further, that the Objections of Defendant Michael Atwood and the Objection of HealthNow are DENIED. Further, that HealthNow’s Motion to Intervene is DISMISSED as moot, consistent with the Magistrate Judge’s recommendations.

SO ORDERED.

REPORT and RECOMMENDATION

DECISION and ORDER

LESLIE G. FOSCHIO, United States Magistrate Judge.

JURISDICTION

This case was referred to the undersigned by Honorable William M. Skretny on November 15, 2010, for pretrial nondispositive motions. The matter is presently before the court on a motion filed April 4, 2011, by Healthnow New York Inc. to intervene 1 (Doc. No. 14).

BACKGROUND and FACTS2

On September 22, 2007, Plaintiff Gayle Stewart (“Plaintiff’ or “Stewart”), sustained personal injuries while a guest upon “Telos,” a boat owned and captained by Defendant Michael Atwood (“Atwood”), the Telos lost steering capability, and another boat, the “Watermark,” owned and captained by Defendant Michael Bistis (“Bistis”), attempted to assist in towing the Telos (“the accident”). The accident occurred in Lake Erie within the continental boundary of the United States. At all time relevant to this action, Plaintiff has been a participant in a healthcare plan (“insurance policy”) administered by HealthNow New York Inc. (“HealthNow” or “Movant”) pursuant to an Employee Welfare Benefit Plan through Plaintiffs employer, Ingram Micro Inc., a locally headquartered software and computer technology reseller. Pursuant to the terms of the insurance policy, HealthNow has paid in excess of $ 12,000 for certain medical, surgical and other healthcare benefits Plaintiff received in treatment for Plaintiffs injuries sustained in the accident.

The insurance policy contains a “Rider for Subrogation Rights” (“Subrogation Rider”)3 providing, as relevant, that in the event the insured in injured in an accident for which another party is responsible, and HealthNow has paid health insurance benefits as a result of that injury, HealthNow “will be subrogated and succeed to the right of recovery against the party responsible” for the injury to the extent of health insurance benefits paid by HealthNow. Subrogation Rider ¶ 1. The Subrogation Rider further provides HealthNow is entitled to be reimbursed for any health insurance benefits paid by HealthNow, from any settlement or judgment funds received by the insured from the party responsible for the insured’s injuries, provided the settlement or judgment received “specifically identifies or allocates monetary sums directly attributable to expenses for which we have paid benefits.” Id.

[176]*176Plaintiff commenced this action in New York Supreme Court, Erie County, on September 22, 2010, seeking to recover for personal injuries sustained in the September 22, 2007 boating accident. Plaintiff and Atwood are both residents of New York, whereas Bistis is a resident of South Carolina. In view of the absence of the requisite complete diversity necessary for jurisdiction under 28 U.S.C. § 1332(a), on October 26, 2010, Atwood removed the action to this court, asserting Plaintiffs allegations comprise a maritime claim within this court’s admiralty jurisdiction pursuant to 28 U.S.C. § 1333. The Notice of Removal (Doc. No. 1) (“Removal Petition”), states that Bistis consented to the removal. Removal Petition ¶ 6.4 Plaintiff did not challenge the removal.

Atwood’s answer, filed November 15, 2010 (Doc. No. 2) (“Atwood’s Answer”), asserts as his Fourth Affirmative Defense that Atwood is, pursuant to the Limitation of Liability Act of 1851, 46 U.S.C. § 30501 et seq. (“Limitation of Liability Act” or “the Act”), entitled to exoneration from or limitation of liability up to the value of the Telos, and asserts a crossclaim against Bistis for indemnification and contribution. Similarly, Bistis’s Answer, filed December 14, 2010 (Doc. No. 5) (“Bistis’s Answer”), asserts as his Ninth Affirmative Defense, that Bistis also is, pursuant to the Act, entitled to exoneration from or limitation of liability to the extent of the value of the Watermark, and asserts a crossclaim against Bistis for indemnification and contribution.

On April 14, 2011, Movant HealthNow filed a motion to intervene in this action (Doc. No. 14) (“motion to intervene”), supported by the attached Declaration of Donall O’Carroll (“O’Carroll Declaration”), exhibits A through D (“Movant’s Exh(s). _”), and the Memorandum of Law in Support of Motion to Intervene by Health-Now New York, Inc. (“Movant’s Memorandum”). By Order filed April 22, 2011 (Doc. No. 15), the parties were directed to file their responses to the motion to intervene by May 13, 2011, and any replies were to be filed by May 20, 2011.

On May 24, 2011, Plaintiff and Bistis filed a Stipulation of Dismissal as to Defendant Bistis (Doc. No. 16) (“Stipulation of Dismissal”), based on settlement. By text order entered May 26, 2011 (Doc. No. 17), the Stipulation of Dismissal was “So Ordered” by Chief District Judge Skretny.

By letter to the undersigned dated June 17, 2011 (Doc. No. 18) (“June 17, 2011 Letter”), Bistis advised that Judge Skretny’s approval of the Stipulation of Dismissal rendered the pending motion to intervene moot as to Bistis. By letter to the undersigned dated June 21, 2011 (Doc. No. 19) (“June 21, 2011 Letter”), Movant disputed Bistis’s assertion that the motion to intervene was moot as to Bistis on the ground that the motion to intervene was pending when the Stipulation of Dismissal, which does not purport to dismiss HealthNow’s claims against Defendants, was filed, and that Health-Now, which is not a party to this action, was not aware of any settlement between Plaintiff and Bistis and thus was unable to secure its purported subrogation claim against Bistis. June 21, 2011 Letter at 1.

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Bluebook (online)
834 F. Supp. 2d 171, 2013 A.M.C. 177, 2012 U.S. Dist. LEXIS 90836, 2011 WL 5120427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-atwood-nywd-2012.