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iNews - Picciano & Scahill's Monthly Newsletter
In This Issue
Decision of Interest: When it Rains it Pours
What is an "Elastic Concept"
Decision of Interest Is a Worker's compensation carrier entitled to loss transfer for payments made to the injured worker in lieu of PIP benefits?
Andrea Ferrucci is one of Who's Who - Women in Professional Services
P & S Published in the New York Law Journal

In August, an article authored by Picciano & Scahill attorneys Jason Tenenbaum and Francis J Scahill was published in the New York Law Journal.  To read the article, titled "What Constitutes a 'Prima Facie" Case in No-Fault Practice?," click here. 

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iNews Issue: 7 August/2009
Decision of Interest: When it Rains it Pours. 
RainRain, rain and more rain. The Summer of 2009 in New York will be known for the rain that has fallen. The deluge of more than 16 inches (twice the average amount) made it the second wettest June and July on record, edging 1928.
 
The Appellate Division First Department in  Pomahac v TrizecHahn 1065 Ave. of the Ams., LLC, 2009 NY Slip Op 06223;  decided on August 18, 2009 kept in the spirit of this wet summer with a decision on the issue of liability for rain water tracked in by tenants in a lobby floor. This case involved a "Slip and Fall" accident which occurred in the lobby of a Manhattan residential building managed by defendant TrizecHahn and maintained by defendant ABM on October 29, 2003. The plaintiff claimed the lobby was not maintained in a reasonably safe condition.
 
As set forth in the Court's decision,  "Plaintiff testified at his deposition that he opened the exterior door to the building, walked through a small vestibule, then passed through the interior door leading to the lobby. A mat covered the vestibule floor and a three- to five-foot long mat was placed on the lobby floor immediately past the interior door. The terrazzo lobby floor appeared to plaintiff to be wet, which he attributed to tracked-in rain water from a storm that produced over an inch and a half of rain. The storm had begun several hours before the accident and ended either shortly before or after it. As he entered the lobby, plaintiff noticed a yellow "caution" warning sign approximately 15 feet away and a man mopping the floor near the sign. As he walked past the man mopping the floor, plaintiff slipped and fell; there was no mat where plaintiff fell.
 
A security guard monitoring the lobby testified at his deposition that someone spilled a cup of coffee in the area where plaintiff fell only moments before the accident and that the man mopping the floor was cleaning that spill at the time of the accident."  The plaintiff's engineer claimed defendants should have placed a mat in the area where plaintiff fell because the terrazzo floor, when wet, is extremely slippery.
 
The Court indicated the engineer's affidavit should have no probative value as the engineer " did not identify the basis for the coefficient of friction value he utilized as a standard and did not demonstrate that, at the time he measured the coefficient, the lobby floor was in the same condition as it was on the date of the accident or a substantially similar condition." The Court held the placing of two mats and the yellow caution sign were sufficient evidence of reasonable precaution to exculpate the defendants from liability, holding "... if the source of the moisture was tracked-in rain water, defendants took reasonable measures to remedy it (see Amsel v New York Convention Ctr. Operating. Corp., 60 AD3d 534 [2009]; Ford v Citibank, NA, 11 AD3d 508 [2004]; Sook Ja Lee v Yi Mei Bakery Corp., 305 AD2d 579 [2003]; see also Gale v BP/CG Ctr. I LLC, 49 AD3d 454 (2008).
 
The moral of the story for the nonplussed New Yorkers who pass through the lobby every day without a glance to the surroundings, is to be careful when it's raining,  your beautiful terrazzo lobby floor may be  very slippery. Better yet, when the summary judgment motion comes in,  make sure your engineer uses the correct coefficient of friction value in the affidavit in opposition to the motion for summary judgment. That would make for an odd lobby sign, wouldn't you agree?
 
Read full decision here.
What is an "Elastic Concept"  in the context  of an SUM/UM dispute?

ElasticThe law is full of great phrases including  "piecing the corporate veil" and "Strictissimus Juris". Rarely will a lawyer use such a phrase in Court; most often the great phrases are left for briefs and motion papers. The matter of Progressive Northeastern Ins. Co. v McBride (2009 NY Slip Op 06251) decided by the Second Department on August 18, 2009 refers to the Claimant's burden of proof on the issue of timeliness of notice to the supplemental uninsured/underinsured carrier (SUM) as an "Elastic Concept", to be found on a case by case analysis of the notice issue.

The Court notes: "In determining whether notice was timely, factors to consider include, inter alia, whether the claimant has offered a reasonable excuse for any delay, such as latency of his/her injuries, and evidence of the claimant's due diligence in attempting to establish the insurance status of the other vehicles involved in the accident (see Matter of Metropolitan Property & Cas. Ins. Co. v Mancuso, 93 NY2d at 492-493; Mighty Midgets v Centennial Ins. Co., 47 NY2d at 19-20; Security Mut. Ins. Co. of N.Y. v Acker-Fitzsimons Corp., 31 NY2d at 441; Matter of Blue Ridge Ins. Co. v Cook, 301 AD2d 598, 599; Matter of Allstate Ins. Co. [White], 231 AD2d 950; cf. Matter of Nationwide Mut. Ins. Co. v Wexler, 276 AD2d 490, 491)."
 
In the matter of Progressive Northeastern Ins. Co. v McBride, the respondent had a one year delay in notifying his SUM carrier and prevailed on the issue of timely notice by showing that his Counsel sent several requests to the insurer of his host taxicab and the adverse vehicle for the SUM limits of the respective policies. His requests were either ignored or incorrect information was received. Citing Mighty Midgets v Centennial Ins. Co., 47 NY2d at pp. 20-21, the Appellate Division agreed this excuse was sufficient and thus McBride found himself on the right side of this "Elastic Concept".

Decision of Interest 

 

Is a worker's compensation carrier entitled to loss transfer for payments made to the injured worker in lieu of PIP benefits?
 
Consider the case of a taxi driver involved in a hit and run accident. The offending vehicle is later found to be insured at the time of the loss. The worker's compensation carrier paid lost wages to the injured taxi driver and the Worker's compensation carrier now seeks reimbursement through intercompany arbitration at Arbitration Forums. Would the Worker's Compensation carrier be entitled to recoup the lost wage payment?
 
This matter is governed by Insurance Law § 5105, entitled "Settlement between insurers", and it states in relevant part that "Any...compensation provider paying benefits in lieu of first party benefits which another insurer would otherwise be obligated to pay... has the right to recover the amount paid from the insurer of any other covered person to the extent that such other covered person would have been liable, but for the provisions of this article, to pay damages in an action at law." In any case, the right to recover exists only if at least one of the motor vehicles involved is a motor vehicle weighing more than six thousand five hundred pounds unloaded or is a motor vehicle used principally for the transportation of persons or property for hire.

This section of the Insurance Law operates in conjunction with § 29 of the Workers' Compensation Law, which states at 2-a that "[t]he sole remedy of any of the foregoing providers to recover the payments specified in the preceding sentence when the other party is a "covered person" shall be pursuant to the settlement procedures contained in § 5105 of the Insurance Law."
 
An insurer who pays out workers' compensation benefits is afforded the mandatory intercompany arbitral process to recoup payment of those benefits through a loss transfer; this mandatory arbitration provides the sole remedy for loss transfer. State Farm Mut. Auto. Ins. Co. v. City of Yonkers, 21 A.D.3d 1110, 801 N.Y.S.2d 624 [2nd Dept. 2005].  This applies to a workers' compensation carrier's right to recover the first $50,000 in compensation and medical benefits paid to a claimant.

It has also been held, however, that it was improper to consider an automobile insurer's insured passenger vehicle as being used "principally for hire" and thus vacation of arbitration award was warranted, even though vehicle was being used as vehicle for hire at time of accident, and bore livery license plates belonging to commercial vehicle owned by insured, where there was no evidence as to when livery plates were put on passenger vehicle, or if plate-switching or use of passenger vehicle to transport persons or property for hire occurred on any occasions other than date of accident.In re Progressive Northeastern Ins. Co. (New York State Ins. Fund), 56 A.D.3d 1111 [3rd Dept. 2008]. A thorough investigation of the facts and circumstances of the injured worker's claim is required before a determination is made for the right to recovery.

Andrea Ferrucci is featured as one of Who's Who - Women in Professional Services

ferrucciWe are pleased to report that Andrea Ferrucci was one of the women featured in Long Island Business News August 7, 2009 edition Who's Who Women in Professional Services.  Andrea had a chance to explain why she is so passionate about her work at Picciano & Scahill.  Here is what the article said: 

Andrea E. Ferrucci is the managing attorney of Picciano & Scahill's bodily injury summary judgment and appellate departments.
 
Law firms are not immue to the economic issues facing every industry and insurance defense firms are now faced with fewer suits, rising costs and an increase in reporting requirements, Ferrucci explained.
 
"The practice of law is more the 'business' of law and the challenge is to maintain a high level of proefessional expertise and a superior work product in light of econimic forces that affect every industry," Ferrucci said.  "As a service business, a law firm must continue to cultivate new business while maintaining a strong relationship with existing clients.  This is why the area of summary judgment motions has become a highly utilized method of resolving cases prior to the trial stage."
 
"Our firm has been able to offer all of our carriers an alternative to the high cost of going to trial, when a 'trial on the papers' will suffice to resolve all the necessary issues," she said.  "I am proud to report that in 2008 our summary judgment department has an approximate 85% success rate, solidifying the usefulness of such motion practice during the litigation process."
 
During her tenure at picciano & Scahill, Ferrucci has also assisted in pro-bono work for military based families, including performing adoptions. 
 
Way to go Andrea!
Contact Frank Scahill, Managing Partner, at fscahill@psnylaw.com.
 

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