Travelers Indemnity Co. v. State

57 Misc. 2d 565, 293 N.Y.S.2d 181, 1968 N.Y. Misc. LEXIS 1243
CourtNew York Court of Claims
DecidedAugust 24, 1968
DocketClaim Nos. 48813, 49547
StatusPublished
Cited by3 cases

This text of 57 Misc. 2d 565 (Travelers Indemnity Co. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travelers Indemnity Co. v. State, 57 Misc. 2d 565, 293 N.Y.S.2d 181, 1968 N.Y. Misc. LEXIS 1243 (N.Y. Super. Ct. 1968).

Opinion

James H. Glavin, Jr., J.

The claimant, a Connecticut insurance corporation, duly licensed to transact insurance business in the State of New York, seeks refund of alleged excesses of contributions charged by and paid to the Department of Insurance as contributions for the Motor Vehicle Liability Security Fund created by section 333 of the Insurance Law.

The State has moved to dismiss the claims on the ground that this court lacks jurisdiction, that the claims were not filed within the appropriate time periods, and that the claims fail to state a cause of action. These assertions are contested by the claimant.

The claimant has cross-moved for summary judgment pursuant to CPLR 3212. Answering the motion for summary judgment by claimant, the State reasserts that this court lacks jurisdiction and that the claims fail to state a cause of action. Additionally, the State objects to a granting of summary judgment by this court.

Section 333 of the Insurance Law creates the Motor Vehicle Liability Security Fund. That Fund is a security device created by statute to cover situations arising ‘ ‘ by reason of the insolvency or inability ’ ’ of casualty insurance companies to meet liability obligations.

Into that Fund an insurer, such as claimant, is obliged to periodically pay certain sums computed from “ the amount of net direct written premiums ” charged during the periods involved. The statute defines “ net direct written premiums ” as meaning ‘ ‘ direct gross premiums written on policies, insuring [567]*567against legal liability arising out of the ownership, operation or maintenance of motor vehicles which are principally garaged in this state, less return premiums thereon and dividends paid to policyholders on such direct business.” The Commissioner of Taxation and Finance is specified by statute to be the “ custodian ” of the Fund and, as such, to invest and disburse the ¡moneys of the Fund.

The Superintendent of Insurance is authorized by statute to adopt, amend and enforce such reasonable rules and regulations as are necessary for the administration of the Fund. The Superintendent is specifically empowered by statute to prescribe and furnish a form upon which insurers are to report the amount of “net direct written premiums” charged by them during each applicable period.

The subject claims arise from the fact claimant excluded from its returns and from its payments into the Fund those premiums received by it for so-called uninsured motorist coverage. (That coverage was required to be added to all New York automobile liability insurance policies by subdivision 2-a of section 167 of the Insurance Law, which was enacted in 1958.) The Superintendent of Insurance took the position such premiums should not be excluded from the calculations of claimant. Claimant thereupon on several occasions paid the disputed amounts to the Superintendent, carefully noting in each instance that such payment was made under protest. Typical language of protest uttered by the claimant is ‘ ‘ Payment of this additional contribution is made under protest and without admission of liability therefor, and for the purpose of avoiding interest, penalties or other proceedings against this Company, and The Travelers Indemnity Company reserves all its rights to take any and all proceedings as to which it may be advised to obtain refund of the same.”

All contentions and arguments of the parties on the respective motions revolve around questions of law. There is no dispute on any issue of fact.

The State’s motion to dismiss is three-pronged, viz: (1) a lack of jurisdiction of this court, (2) failure to make timely filing of the claims, and (3) failure of the claims to state a cause of action.

The State’s motion to dismiss is in all respects, denied.

It is the court’s opinion the claims state causes of action and were filed in timely fashion.

The sole question posed in this case is one of law. Succinctly put, it is whether the payments required to be made by claimant [568]*568are to be calculated on a basis which includes premiums attributable to uninsured motorist coverage.

The State challenges the jurisdiction of this court, arguing that claimant’s relief, if any, should come under the provisions of CPLR article 78.

In rejecting the State’s contention in this regard, the court takes the position asserted by former Court of Appeals Judge Marvin- Dye, sitting as a Judge of this court in 1966, in the case of China City Corp. v. State of New York (51 Misc 2d 429, 432): “ The jurisdictional challenge made by the State is without ■merit. The issue posed falls squarely within the competence of the Court of Claims to deal with as a matter of law. The court is not called upon to resort to equitable principles and could not do so even if it were, for as we know, the Court of Claims is without equitable jurisdiction. (Court of Claims Act, §§ 8, 9.) ”

In the China City Corp. case, Judge Dye noted (p. 430) “ The sole question posed is one of law.” In that case the question of law was how a fee required to be paid to the State Liquor Authority should be calculated. There, as here, suit in this court was instituted to recover moneys paid to a State agency as the result of allegedly wrongful calculations by the agency of the sum payable. There, as here, statutory intent, an issue of law, was pivotal. ' (See, also, Valenza v. State of New York, 14 Misc 2d 128; Muter v. State of New York, 178 Misc. 360; Samuel Adler, Inc. v. Noyes, 285 N. Y. 34.)

Having concluded the State’s motion to dismiss is without merit, we turn to claimant’s motion for summary judgment.

The. State has asserted ‘ its objection to summary judgment in the Court of Claims ”, but has candidly qualified that assertion by conceding ‘ this question has been resolved against the'State in the Appellate Division, Third Department ”. (The State notes it asserts this objection in this case so that it may “reserve the question” in the event this claim reaches the Court of Appeals.) The authority referred to by the State is dispositive of its objection in this court. Summary judgment relief is available in this court. (Vern Norton, Inc. v. State of New York, 27 A D 2d 13; see Court of Claims Act, § 9, subd. 9; CPLR 101.)

There being no dispute on any issue of fact, the motion to dismiss having been found inappropriate, the motion for summary judgment having been made upon the specified underlying papers (see CPLR 3212, and it being clear this court has the [569]*569power to consider such a motion, we come to the question of law which must be determinative of claimant’s motion for summary judgment.

Claimant’s position is that the definition of “ net direct written premiums ” under section 333 does not require, for calculation purposes, inclusion of premiums attributable to uninsured motorist coverage. It points out that the statutory definition of “net direct written premiums” refers to gross premiums written on policies ‘ ‘ insuring against legal liability arising out of the ownership, operation or maintenance of motor vehicles which are principally garaged in this state The emphasis on the words “ insuring against legal liability ” has been made by claimant and claimant asserts this means insurance of the policyholder against his own

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Bluebook (online)
57 Misc. 2d 565, 293 N.Y.S.2d 181, 1968 N.Y. Misc. LEXIS 1243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-indemnity-co-v-state-nyclaimsct-1968.