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Kelly v. Seager

Appellate Division of the Supreme Court of New York, Fourth Department
Jul 13, 1990
163 A.D.2d 877 (N.Y. App. Div. 1990)

Summary

finding insurer's subrogation right unaffected by N.Y. C.P.L.R. § 4545

Summary of this case from In re September 11th Litigation

Opinion

July 13, 1990

Appeal from the Supreme Court, Ontario County, Boehm, J.

Present — Callahan, J.P., Denman, Green, Pine and Balio, JJ.


Order unanimously affirmed with costs. Memorandum: The collateral source rule set forth in CPLR 4545 (c) does not apply to subrogation actions seeking to recover moneys paid by an insurer on a fire loss. The purpose of the statutory collateral source rule is to prevent multiple recoveries for the same loss by an injured party (see generally, 5 Weinstein-Korn-Miller, NY Civ Prac ¶ 4545.01). That purpose would not be served by its application to subrogation claims. Subrogation itself "exists to prevent double recovery by the insured and to force the wrongdoer to bear the ultimate costs" (Scinta v. Kazmierczak, 59 A.D.2d 313, 316). Where, as here, the insurer has indemnified its insureds for their fire loss, the insurer is the real party in interest on the subrogation action (see, Siegel, N.Y. Prac, § 137), and the pertinent issue, for purposes of CPLR 4545 (c), is whether the insurer stands to obtain a multiple recovery. Defendants do not contend that the insurer has, or will, receive moneys from a collateral source, and Supreme Court properly denied summary judgment.


Summaries of

Kelly v. Seager

Appellate Division of the Supreme Court of New York, Fourth Department
Jul 13, 1990
163 A.D.2d 877 (N.Y. App. Div. 1990)

finding insurer's subrogation right unaffected by N.Y. C.P.L.R. § 4545

Summary of this case from In re September 11th Litigation

In Kelly v. Seager (163 A.D.2d 877), the Fourth Department concluded that the "collateral source rule set forth in CPLR 4545 (c) does not apply to subrogation actions seeking to recover moneys paid by an insurer on a fire loss [as] [t]he purpose of the statutory collateral source rule is to prevent multiple recoveries for the same loss by an injured party * * * [and] [t]hat purpose would not be served by its application to subrogation claims".

Summary of this case from Nossoughi v. Federated Stores
Case details for

Kelly v. Seager

Case Details

Full title:PARKER KELLY et al., Respondents, v. DIANE SEAGER, Appellant, et al.…

Court:Appellate Division of the Supreme Court of New York, Fourth Department

Date published: Jul 13, 1990

Citations

163 A.D.2d 877 (N.Y. App. Div. 1990)
558 N.Y.S.2d 403

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