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Lanza v. Quebec & Ontario Transportation Co.

Citations: 91 A.D.2d 518; 456 N.Y.S.2d 393; 1982 N.Y. App. Div. LEXIS 19330

Court: Appellate Division of the Supreme Court of the State of New York; December 6, 1982; New York; State Appellate Court

Narrative Opinion Summary

In this case, the Supreme Court of New York County considered the applicability of the statute of limitations under Title 33, §933(b) of the U.S. Code for a longshoreman's claim against a shipowner. The plaintiff, having sustained injuries in 1977, settled a Federal workers' compensation claim in 1978 without a formal compensation order. Later, in 1979, he filed a lawsuit seeking damages. The defendant moved for summary judgment, contending that the plaintiff's action was time-barred, as it was not initiated within six months of the settlement as required by law. The plaintiff argued that the statute of limitations should not commence until a formal compensation order was issued, which had not occurred. The court reversed a prior ruling and found that a claims examiner's letter, indicating that the settlement was finalized, constituted an 'award in a compensation order,' thereby triggering the statute of limitations. The court relied on the precedent set in Ambrosino v. Transoceanic S.S. Co. to support its decision. As a result, the plaintiff's claim was dismissed as time-barred, and the defendant's motion for summary judgment was granted unanimously by the judges.

Legal Issues Addressed

Effect of Settlement without Formal Compensation Order

Application: A settlement agreement without a formal compensation order from the DOL can still trigger the statute of limitations for filing a lawsuit against third parties.

Reasoning: The plaintiff, a longshoreman injured in July 1977 while working on the defendant's vessel, had settled a Federal workers’ compensation claim with his employer's carrier in July 1978 without obtaining a formal compensation order from the United States Department of Labor (DOL).

Precedent in Ambrosino v. Transoceanic S.S. Co.

Application: The court applied the precedent from Ambrosino v. Transoceanic S.S. Co., recognizing that a letter confirming settlement terms can fulfill regulatory requirements, thereby initiating the limitation period.

Reasoning: Citing the precedent set in Ambrosino v. Transoceanic S.S. Co., the court concluded that the absence of a formal conference did not negate the binding nature of the letter, which memorialized the settlement and fulfilled regulatory requirements.

Statute of Limitations under Title 33, §933(b)

Application: The court determined that the statute of limitations for initiating actions against third parties begins upon the effective date of a settlement, as demonstrated by the claims examiner's letter.

Reasoning: The court found that the claims examiner's letter from August 17, 1978, which indicated that the settlement would be placed in inactive files after payment evidence was received, effectively served as an 'award in a compensation order' triggering the statute of limitations.