Keenan v. Jones
Keenan v. Jones
Opinion of the Court
DECISION AND ORDER
BACKGROUND
Plaintiffs Paul D. Keenan and Nora Keenan
Silo, the third-party defendant, now moves for summary judgment in its favor on the ground that the Omnibus Act bars the relief sought by the third-party plaintiff. Silo contends that the Omnibus Act applies to bar the claim for indemnity and contribution even though the claim here arose, and the complaint was filed, before the Omnibus Act was adopted on September 10, 1996. Defendants, on the other hand, contend that the Act does not apply to this action which was pending at the time the Omnibus Act was adopted.
Because I believe that New York courts would hot apply the new Omnibus Act in this situation, Silo’s motion for summary judgment is denied.
DISCUSSION
The issue is whether the new Omnibus Act — enacted on September 10, 1996 — applies to cases then pending. I believe controlling authority in New York establishes that it does not apply.
First of all, it is clear that in this diversity action this federal court must apply New York law. At the time this lawsuit was filed, it was the law in New York that a defendant, facing suit by an injured employee, could bring a third-party action seeking contribution or indemnity from the plaintiff’s employer. See Dole v. Dow Chem. Co., 30 N.Y.2d 143, 331 N.Y.S.2d 382, 282 N.E.2d 288 (1972). The Omnibus Act changed that except under circumstances where the employee suffered a “grave injury.” In this case there is no suggestion that Keenan sustained a “grave injury” as defined by the statute.
Whether the Omnibus Act should apply to pending cases raises interesting issues as to
In my view, there is no reason to suspect that the Court of Appeals would disagree with the decisions of the appellate courts’ determinations that the Omnibus Act should be applied prospectively only.
In these circumstances, my course as a federal court is clear.
Although the ultimate New York authority on the issue now before us would, of course, be the New York Court of Appeals, in the absence of a Court of Appeals’ decision squarely on point or an indication that the Court of Appeals is likely to disagree with the holdings of the Appellate Division, those holdings are entitled to “persuasive, if not decisive, consideration.” In re Eastern and Southern Districts Asbestos Litigation, 772 F.Supp. 1380, 1389 (E. & S.D.N.Y. 1991). In other words, we must follow the above-cited decision of the Appellate Division, First Department, “in the absence of convincing evidence that the [New York Court of Appeals] would decide differently.” Stoner v. New York Life Ins. Co., 311 U.S. 464, 467, 61 S.Ct. 336, 85 L.Ed. 284 (1940).
Sphere Drake Ins. v. P.B.L. Entertainment, Inc., 30 F.3d 21, 22-23 (2d Cir. 1994), vacated on other grounds, 52 F.3d 22 (2d.Cir. 1995).
Since there are such clear, unambiguous and unanimous decisions from the Appellate Divisions on this issue, I am obligated to follow those rulings.
■ Furthermore, the reasoning of these decisions is sound and amply supports the Appellate Divisions’ determination that the legislature intended the Omnibus Act to apply prospectively and not to pending cases. The Second Department in Morales and the Third Department in Majewski considered in much detall all of the arguments advanced to support retroactive application and they both determined, in lengthy and careful opinions, that the Omnibus Act should not be applied retroactively. I agree.
CONCLUSION
For the reasons set forth above, third-party defendant Silo’s motion for summary judgment (Dkt. No. 15) is in all respects denied.
IT IS SO ORDERED.
. Paul D. Keenan shall hereafter be referred to as “Keenan.”
. The third-party complaint originally named Fretter, Inc. as third-party defendant. Silo, Inc. was later substituted as third-party defendant.
Reference
- Full Case Name
- Paul D. KEENAN and Nora Keenan v. Melvin JONES and J.B. Hunt Transport, Inc., Defendants/Third-Party v. SILO, INC., Third-Party
- Cited By
- 1 case
- Status
- Published