Summary
The court considers whether a longshoreman’s third-party action against a shipowner and codefendant was extinguished under section 933 of the Longshoremen’s and Harbor Workers’ Compensation Act after the plaintiff accepted compensation and failed to sue within six months. It holds that the employer, as statutory assignee, could ratify or reassign the action to the employee, and denies the defendants’ motions to dismiss.
Topics
Practice areas
Questions Presented
- Whether the statutory assignment under section 933 of the Longshoremen's and Harbor Workers' Compensation Act prevented the employer from ratifying or reassigning to the employee a third-party action commenced by the employee after the statutory six-month period.
- Whether such ratification or reassignment violated New York's prohibition against assignment of personal injury claims.
- Whether defendants' motion and cross-motion to dismiss should be granted.
Holdings
- After the six-month period expires following acceptance of compensation under an award in a compensation order, the employer possesses complete control of the third-party claim as statutory assignee and may institute the action, decline to institute it, or reassign or ratify an action brought by the employee.
- A reassignment of the statutory third-party claim to the injured longshoreman does not violate General Obligations Law section 13-101(1) because it revests the claimant with the exclusive right to maintain the action in protection of his and the employer's beneficial interests.
Key quotations
“When the § 33(b) [US Code, tit 33, § 933, subd (b)] assignment occurs, it transfers the employee’s entire right to commence a third-party action to the employer” (117 Misc. 2d at 275)
“the employer possesses complete control of the third-party claims” (117 Misc. 2d at 275-276)
“It is also free to reassign or ratify an action brought by its employee.” (117 Misc. 2d at 276)
Factual background
Plaintiff was a longshoreman who filed a compensation claim against his employer under the Longshoremen's and Harbor Workers' Compensation Act and later brought a third-party action against the shipowner and Weeks Crane. Defendants argued that, after plaintiff accepted compensation pursuant to an award in a compensation order and six months elapsed, section 933 assigned the third-party claim to the employer or its insurer. Plaintiff asserted that his employer ratified his action, waived any right to sue independently, and agreed to be bound by the result.
Procedural history
The plaintiff, a longshoreman, brought an action against Sun Export Holding Corp., the shipowner, and Weeks Crane. Sun Export moved and Weeks Crane cross-moved to dismiss, arguing that section 933 of the Longshoremen's and Harbor Workers' Compensation Act assigned the plaintiff's third-party claim to his employer after the statutory six-month period expired. The court denied the motion and cross-motion because the employer had ratified or reassigned the action, and the statute permitted that reassignment.