Stewart v. New York City Transit Authority

56 Misc. 3d 611, 57 N.Y.S.3d 614
CourtNew York Supreme Court
DecidedNovember 10, 2015
StatusPublished
Cited by1 cases

This text of 56 Misc. 3d 611 (Stewart v. New York City Transit Authority) 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
Stewart v. New York City Transit Authority, 56 Misc. 3d 611, 57 N.Y.S.3d 614 (N.Y. Super. Ct. 2015).

Opinion

OPINION OF THE COURT

Mary Ann Brigantti, J.

On remittal from the Appellate Division, First Department, the plaintiff Shelton Stewart cross-moves for (1) acceleration of [613]*613the further amended judgment entered in this matter, with interest, and (2) the imposition of sanctions, costs, and attorney’s fees against the defendant, New York City Transit Authority. The defendant opposes the cross motion.

I. Background

The issue presented to the court is whether the plaintiff/claimant is entitled to acceleration of all future annuity payments from the defendant, under CPLR 5044, representing the future damages portion of a judgment the plaintiff obtained against the defendant after a jury trial. On December 19, 2007, a jury returned a verdict in this slip and fall personal injury action in favor of the plaintiff against the defendant. On May 7, 2009, a judgment was entered against the defendant as follows:

$2,000,000 for past pain and suffering;
$400,000 for past loss of earnings;
$2,700,000 for future pain and suffering, 20 years;
$1,300,000 for future medical expenses, 20 years; and
$900,000 for future loss of earnings, 20 years.

The jury apportioned liability 80% to the defendant and 20% to the plaintiff. The defendant appealed both the liability and damages portions of the verdict. On March 3, 2011, the Appellate Division, First Department, affirmed the liability portion of the verdict, but modified the damages award (82 AD3d 438). This resulted in an amended judgment that was entered on May 5, 2011. On October 13, 2011, the Court of Appeals refused to alter the amended judgment (17 NY3d 712). As a result, a further amended judgment was entered on December 16, 2011. This further amended judgment contained the exact same terms as the original amended judgment, but included additional costs and interest. The further amended judgment awarded plaintiff the following damages:

$2,000,000 for past pain and suffering;
$360,000 for past loss of earnings;
$365,000 for medical expenses;
$665,000 for future medical expenses, 20 years;
$2,700,000 for future pain and suffering, 20 years; and
$337,500 for future loss of earnings, 7.5 years.

After accounting for the plaintiff’s 20% share in liability, the total past damages awarded was $2,180,000. The total future [614]*614damages awarded to the plaintiff was $2,962,000, for a total damages award of $5,142,000, excluding costs and interest. The December 16, 2011 further amended judgment was entered pursuant to CPLR article 50-B, which required the defendant to make a lump-sum payment for all past amounts due and the first $250,000 of future damages owed, and to commence periodic payments to the plaintiff for all future damages in excess of $250,000. The defendant thereafter issued two checks to the plaintiff’s counsel’s office dated December 27, 2011, and received on January 2, 2012. One check was issued to plaintiff’s counsel in the amount of $1,903,029.70. The other check was issued to “Shelton Stewart, c/o” plaintiff’s counsel, in the amount of $2,754,441.16. It is not disputed that, to date, the defendant has not made any periodic monthly payments to the plaintiff.

The plaintiff contends that the payments tendered by the defendant were untimely and inadequate. Plaintiff’s counsel nevertheless accepted the checks “under protest” as “partial payments.” After some time went by, plaintiff’s counsel threatened an execution of the judgment if the defendant did not make the required, allegedly overdue payments. Instead of commencing those payments, on or about February 8, 2012, the defendant filed an order to show cause seeking vacatur of the further amended judgment on the grounds that the attorney’s fee was erroneously set at an unlawful percentage. The plaintiff notes that this assertion would not have affected the total amount of the judgment owed by the defendant. The plaintiff/claimant opposed the order to show cause and made the instant cross motion seeking acceleration of the future periodic monthly payments, plus interest, pursuant to CPLR 5044, as well as sanctions against the defendant for frivolous motion practice and conduct pursuant to 22 NYCRR 130-1.1.

After a hearing as well as multiple conferences, the Supreme Court (Stanley Green, J.S.C.) granted the defendant’s motion to the extent of holding that plaintiff’s counsel was not entitled to the additional fee that he sought for prosecution of the appeal of this matter. By written order dated January 7, 2013, both sides were directed to submit judgments for consideration by the court. Plaintiff’s counsel thereafter appealed this ruling. In a 3-2 decision rendered on December 30, 2014, the Appellate Division, First Department, reversed the decision by the lower court, determining that plaintiff’s additional attorney’s fee arrangement with his lawyers was appropriate (125 AD3d 129). [615]*615The Appellate Division remanded the matter back to the Supreme Court to make a determination on the plaintiff’s cross motion for acceleration of all future periodic payments due the plaintiff, and for sanctions. After Justice Green recused himself, the cross motion was referred to this court.

II. Applicable Law and Analysis

The Court of Appeals has noted that while

“the statutory scheme of [CPLR] article 50-B is technical and complicated, its basic operation is easily stated. Past damages are paid in a lump sum (CPLR 5041 [b]). Future damages, which are awarded by the jury without reduction to present value (CPLR 4111 [f]), are bifurcated for purposes of article 50-B. The first $250,000 is paid as a lump sum (CPLR 5041 [b]). The remainder, after the subtraction of attorney’s fees and other adjustments, is to be paid in periodic installments (CPLR 5041 [e]). To provide for these periodic payments, subdivision (e) further specifies that defendants are to purchase an annuity contract” (Rohring v City of Niagara Falls, 84 NY2d 60, 66 [1994]).

CPLR 5042 specifies that security authorized or required for the payment of a judgment in periodic installments must be in the form of an annuity contract, “executed by a qualified insurer and approved by the superintendent of financial services pursuant to section five thousand forty-nine of this article, and approved by the court.” Importantly, for the purposes of this motion, CPLR 5043 provides specific timing requirements for a defendant or defendants who must post and maintain security in order to secure payment of future periodic installments. The statute states that “each party liable for all or a portion of such judgment shall separately or jointly with one or more others post security in an amount necessary to secure payment for the amount of the judgment for future periodic installments within thirty days after the date the judgment is entered.” (CPLR 5043 [a] [emphasis supplied].) If a debtor fails to post the required security, under CPLR 5043 (b), a judgment creditor may move before a court to find that the required security has not been posted and maintained. Upon such a finding, the court shall order that security complying with this article be posted within 30 days.

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Cite This Page — Counsel Stack

Bluebook (online)
56 Misc. 3d 611, 57 N.Y.S.3d 614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-new-york-city-transit-authority-nysupct-2015.