NY State Senate Bill 2021-S6098

Senate Bill S6098

2021-2022 Legislative Session

Relates to expediting actions involving insurance claims for damages resulting from a state disaster emergency

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Apr 08, 2021	referred to judiciary

2021-S6098 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Add RR3410, 3411 & 3412, amd R3403, CPLR
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5531
2015-2016: S6946
2017-2018: S8756
2019-2020: S3173
2023-2024: S4638

2021-S6098 (ACTIVE) - Summary

Relates to expediting actions involving insurance claims for damages resulting from a state disaster emergency.

2021-S6098 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6098

SPONSOR: LANZA
 
TITLE OF BILL:

An act to amend the civil practice law and rules, in relation to expe-
diting actions involving insurance claims for damages resulting from a
state disaster emergency

 
PURPOSE OR GENERAL IDEA OF BILL:

To expedite actions involving insurance claims for damages resulting
from a state disaster emergency and to provide mandatory guidelines

 
SUMMARY OF PROVISIONS:

Section 1 would add new rules 3410, 3411, and 3412 to the civil practice
law and rules, and create a mandatory expedited preliminary conference
for property damage claims against insurers for damages sustained by
insured's in counties where a State Disaster Emergency has declared by
the Governor pursuant to Executive Law Section 29-a.

Section 2 would amend rule 3403 (a) of the civil practice law and rules
to allow such litigation to be granted a special trial preference, thus
expediting ultimate resolution of same. Section 3 states that this act
shall take effect immediately.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

N/A

 
JUSTIFICATION:

Where many insurers have dealt with the victims of property damage loss-
es sustained as the result of State Disaster Emergencies, i.e.  most
recently torm Sandy, in a responsible and timely manner, some insurers
have not. This has resulted in litigation by property owners, i.e. home-
owners, to enforce their rights under contracts of insurance. Many of
these property owner insured's have sustained utter financial ruin due
to severe property damage losses, and this bill seeks to allow for a
swift and certain resolution of their claims against their insurers in
Court. For example, there is no reason why an individual who has lost
their home and all of their belongings due to Storm Sandy should have to
wait years for their claims against their insurer to be adjudicated in
Court. This bill requires that upon institution of an action by an
insured against an insurer for damages related to a State Disaster Emer-
gency as declared by the Governor, the Court shall hold a preliminary
conference within thirty days after the request for judicial inter-
vention is filed. In addition, this bill requires that all parties shall
appear for preliminary conference by a person fully authorized to
dispose of the case. It is hoped that requiring same will permit many of
such actions to be resolved without the need for further proceedings.
For actions which cannot be resolved at the preliminary conference, the
bill requires that discovery be completed within 60 days of the holding
of the conference, absent good cause shown.  Finally, this bill allows
for these types of actions to be given a special trial preference, and
be tried in advance of most other types of litigation. An expedited
discovery schedule and a special trial preference represent a recogni-
tion that property owners who have all too often lost all of the
possessions due to natural disaster, as declared by the Governor, should
have the ability to obtain prompt and swift adjudication of their claims
against any insurers who would ostensibly be contractually responsible
to them.

 
PRIOR LEGISLATIVE HISTORY:

2020: S.3173-Referred to Judiciary

2019: S.3173 Referred to Judiciary

2018: S.8756 Referred to Judiciary/A.6208

2017: A.6208 Referred to Codes

2016: S.6946 - Referred to Judiciary/A.2946

2015: A.2946 - Third Reading Calendar

2014: S.5531 - Referred to Judiciary/A.5570

2013: S.5531 - Referred to Judiciary/A.5570 Third Reading Calendar -
Passed Assembly - Third Reading Calendar - Passed Assembly

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

No negative effects anticipated. If contractual claims against insurers
are resolved in a more timely manner, there may be some positive effects
upon State and Local government disaster-related expenditures.

 
EFFECTIVE DATE:
This act shall take effect immediately

2021-S6098 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6098
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               April 8, 2021
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the civil practice law and rules, in relation  to  expe-
   diting actions involving insurance claims for damages resulting from a
   state disaster emergency

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The civil practice law and rules is amended by adding three
 new rules 3410, 3411 and 3412 to read as follows:
   RULE 3410.  MANDATORY  PRELIMINARY  CONFERENCE  IN  CERTAIN  INSURANCE
 ACTIONS.  (A)  IN  ANY  ACTION  INVOLVING AN INSURANCE CLAIM FOR DAMAGES
 OCCURRING TO PROPERTY IN A COUNTY WHERE A STATE DISASTER  EMERGENCY  HAS
 BEEN  DECLARED  BY  THE GOVERNOR PURSUANT TO SECTION TWENTY-EIGHT OF THE
 EXECUTIVE LAW RELATING TO ANY CLAIM  ARISING  FROM  THE  CAUSE  OF  SUCH
 DECLARATION, THE COURT SHALL HOLD A PRELIMINARY CONFERENCE WITHIN THIRTY
 DAYS AFTER THE REQUEST FOR JUDICIAL INTERVENTION IS FILED.
   (B)  AT  ANY  CONFERENCE HELD PURSUANT TO THIS RULE, ALL PARTIES SHALL
 APPEAR IN PERSON OR BY COUNSEL, AND IF APPEARING BY COUNSEL, SUCH  COUN-
 SEL  SHALL  BE  FULLY AUTHORIZED TO DISPOSE OF THE CASE.  IN THE COURT'S
 DISCRETION, THE COURT MAY PERMIT A REPRESENTATIVE OF ANY PARTY TO ATTEND
 THE SETTLEMENT CONFERENCE TELEPHONICALLY OR BY VIDEO-CONFERENCE.
   (C) UPON FILING OF A REQUEST  FOR  JUDICIAL  INTERVENTION,  THE  COURT
 SHALL  PROMPTLY  SEND  A NOTICE TO PARTIES ADVISING THEM OF THE TIME AND
 PLACE OF THE CONFERENCE, THE PURPOSE OF THE CONFERENCE AND THE  REQUIRE-
 MENTS  OF  THIS  RULE.  THE  NOTICE SHALL BE IN A FORM PRESCRIBED BY THE
 OFFICE OF COURT ADMINISTRATION, OR, AT THE DISCRETION OF THE  OFFICE  OF
 COURT  ADMINISTRATION, THE ADMINISTRATIVE JUDGE OF THE JUDICIAL DISTRICT
 IN WHICH THE ACTION IS PENDING, AND SHALL  ADVISE  THE  PARTIES  OF  THE
 DOCUMENTS THAT THEY SHOULD BRING TO THE CONFERENCE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05614-02-1

 S. 6098                             2
 
   (D) NO ADJOURNMENT IN EXCESS OF TEN DAYS SHALL BE GRANTED BY THE COURT
 FOR  ANY SUCH PRELIMINARY CONFERENCE, AND SUCH AN ADJOURNMENT SHALL ONLY
 BE GRANTED UPON GOOD CAUSE SHOWN.
   (E)  DISCOVERY  SHALL  BE COMPLETED WITHIN SIXTY DAYS FROM THE DATE OF
 THE PRELIMINARY CONFERENCE, AND PENALTIES MAY BE  ASSESSED  AGAINST  ANY
 PARTY AS PER SECTION THREE THOUSAND ONE HUNDRED TWENTY-SIX OF THIS CHAP-
 TER  FOR  REFUSAL  TO  COMPLY  WITH DISCOVERY WITHIN SAID SIXTY DAY TIME
 PERIOD. THE COURT MAY EXTEND SAID SIXTY DAY TIME PERIOD  SUA  SPONTE  IN
 THE INTEREST OF JUSTICE, OR UPON GOOD CAUSE SHOWN BY ANY PARTY.
   RULE  3411.  MANDATORY  SETTLEMENT  CONFERENCE  IN  CERTAIN  INSURANCE
 ACTIONS. IN ANY ACTION INVOLVING AN INSURANCE CLAIM FOR  DAMAGES  OCCUR-
 RING  TO  PROPERTY IN A COUNTY WHERE A STATE DISASTER EMERGENCY HAS BEEN
 DECLARED BY THE GOVERNOR PURSUANT TO SECTION TWENTY-EIGHT OF THE  EXECU-
 TIVE  LAW  RELATING TO ANY CLAIM ARISING FROM THE CAUSE OF SUCH DECLARA-
 TION, THE COURT SHALL HOLD  A  MANDATORY  SETTLEMENT  CONFERENCE  WITHIN
 FOURTEEN  DAYS  AFTER  A NOTE OF ISSUE HAS BEEN FILED FOR THE PURPOSE OF
 HOLDING SETTLEMENT DISCUSSIONS PERTAINING TO SUCH INSURANCE CLAIMS.
   RULE 3412. MOTIONS IN CERTAIN INSURANCE ACTIONS.  (A)  NOTWITHSTANDING
 SUBDIVISION  (A)  OF  RULE THIRTY-TWO HUNDRED TWELVE OF THIS CHAPTER, IN
 ANY ACTION INVOLVING AN INSURANCE CLAIM FOR DAMAGES OCCURRING TO PROPER-
 TY IN A COUNTY WHERE A STATE DISASTER EMERGENCY HAS BEEN DECLARED BY THE
 GOVERNOR PURSUANT TO SECTION TWENTY-EIGHT OF THE EXECUTIVE LAW  RELATING
 TO  ANY  CLAIM ARISING FROM THE CAUSE OF SUCH DECLARATION, ALL PRE-TRIAL
 MOTIONS SHALL BE MADE WITHIN THIRTY DAYS AFTER  THE  NOTE  OF  ISSUE  IS
 FILED.
   (B) THIS RULE SHALL NOT APPLY TO CLAIMS INVOLVING REINSURANCE.
   §  2. Subdivision (a) of rule 3403 of the civil practice law and rules
 is amended by adding a new paragraph 8 to read as follows:
   8. AN ACTION TO RECOVER DAMAGES RESULTING FROM DAMAGE TO PROPERTY IN A
 COUNTY CAUSED BY A NATURAL DISASTER UPON DECLARATION OF A STATE DISASTER
 EMERGENCY BY THE GOVERNOR PURSUANT TO SECTION TWENTY-EIGHT OF THE EXECU-
 TIVE LAW RELATING TO ANY CLAIM ARISING FROM THE CAUSE OF  SUCH  DECLARA-
 TION.
   § 3. This act shall take effect immediately.

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