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Reich v. Manhattan Boiler Equipment Corp.

Appellate Division of the Supreme Court of New York, First Department
Jun 17, 1997
240 A.D.2d 262 (N.Y. App. Div. 1997)

Opinion

June 17, 1997

Appeal from the Supreme Court, New York County (Sherry Klein Heitler, J.).


The transaction in issue, made after trial and apportionment of liability, was correctly held to be sanctioned by Feldman v. New York City Health Hosps. Corp. ( 56 N.Y.2d 1011, revg 84 A.D.2d 166, for reasons set forth in 107 Misc.2d 145) as "an agreement in which a stranger to the litigation loaned the main defendant the amount necessary to pay the plaintiff so that it could then seek contribution from the third-party defendant" ( Gonzales v. Armac Indus., 81 N.Y.2d 1, 7). Defendant's insurance carrier is not entitled to a complete lien on the proceeds collected by plaintiff or plaintiff's assignor, defendant's third-party judgment creditor in the underlying action for 25% of the judgment ( see, Palma v. Ben Cal Assocs., 161 A.D.2d 567, lv dismissed 77 N.Y.2d 834, 78 N.Y.2d 1092 [ construing Workers' Compensation Law § 29]). The court properly calculated the statutory interest.

Concur — Murphy, P.J., Wallach, Rubin, Tom and Andrias, JJ.


Summaries of

Reich v. Manhattan Boiler Equipment Corp.

Appellate Division of the Supreme Court of New York, First Department
Jun 17, 1997
240 A.D.2d 262 (N.Y. App. Div. 1997)
Case details for

Reich v. Manhattan Boiler Equipment Corp.

Case Details

Full title:LOUIS S. REICH, as Assignee of JOHN H. THOMPSON, Respondent, v. MANHATTAN…

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

Date published: Jun 17, 1997

Citations

240 A.D.2d 262 (N.Y. App. Div. 1997)
659 N.Y.S.2d 737