Raponi v. Orange & Rockland Utilities, Inc.
Court: Appellate Division of the Supreme Court of the State of New York; November 15, 1995; New York; State Appellate Court
An appeal was made from a Supreme Court order that granted petitioners Eugene D. Raponi and Marcia Raponi’s application to apportion a $100,000 settlement from a personal injury action stemming from a motor vehicle accident in which Eugene suffered catastrophic injuries, resulting in quadriplegia. The settlement was reached with the other vehicle's owner and operator, with Marcia seeking damages for loss of consortium. Respondents, who provide workers’ compensation benefits to Eugene, consented to the settlement but did not release their lien. The Supreme Court held a hearing where the respondents did not call any witnesses, relying solely on cross-examination. The court determined that the settlement had to account for the substantial damages incurred, which were several million dollars. It noted Marcia’s unpaid caregiving services for Eugene, which, if compensated, would have required significant workers' compensation payments. The court concluded that Marcia should receive the net proceeds of the settlement due to her uncompensated loss compared to the insurer's gain. The appeal challenged the Supreme Court's discretion under Workers’ Compensation Law §29(5) regarding the apportionment of damages. The appellate court affirmed the Supreme Court’s decision, indicating that the order was consistent with the interests of the parties and supported by the record. It emphasized that the law aims to prevent double recovery and clarified that a spouse's award for loss of services is not subject to the insurer's lien. Although there is a potential for abuse in apportioning settlements entirely to loss of services claims, this risk was mitigated in this case due to the magnitude of the claim exceeding the available funding. The order was affirmed with costs.