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Government Employees Ins. Co. v. Burns Ford

Appellate Division of the Supreme Court of New York, Second Department
May 17, 1999
261 A.D.2d 508 (N.Y. App. Div. 1999)

Opinion

May 17, 1999

Appeal from the Supreme Court, Suffolk County (Berler, J.).


Ordered that the order is reversed, on the law, with costs, the motion is granted, the complaint is dismissed insofar as asserted against the appellant, and the action against the remaining defendant is severed.

The plaintiff had no right in subrogation to recover for payments made to its insureds for basic economic loss against the appellant ( see, Country Wide Ins. Co. v. Osathanugrah, 94 A.D.2d 513, affd 62 N.Y.2d 815). Thus, the plaintiff's second and fourth causes of action should have been dismissed.

In addition, the plaintiff is collaterally estopped from asserting that the offending vehicle was not stolen at the time of the accident, as this issue was decided in the arbitration between the plaintiff and its insureds. Under the circumstances of this case, the appellant owner is not liable for damages resulting from an accident involving its stolen car (Vehicle and Traffic Law § 388 Veh. Traf.). Accordingly, the plaintiff's first, third, and fifth causes of action should also have been dismissed ( see, Katz v. Goodyear Tire Rubber Co., 143 A.D.2d 639; see also, Epstein v. Mediterranean Motors, 109 A.D.2d 340, affd 66 N.Y.2d 1018).

Bracken, J. P., Thompson, Goldstein, McGinity and Schmidt, JJ., concur.


Summaries of

Government Employees Ins. Co. v. Burns Ford

Appellate Division of the Supreme Court of New York, Second Department
May 17, 1999
261 A.D.2d 508 (N.Y. App. Div. 1999)
Case details for

Government Employees Ins. Co. v. Burns Ford

Case Details

Full title:GOVERNMENT EMPLOYEES INSURANCE CO., Respondent, v. BURNS FORD, INC.…

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

Date published: May 17, 1999

Citations

261 A.D.2d 508 (N.Y. App. Div. 1999)
690 N.Y.S.2d 613

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