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Carminucci v. Pepsico, Inc.
Citations: 236 A.D.2d 499; 653 N.Y.S.2d 946; 1997 N.Y. App. Div. LEXIS 1349
Court: Appellate Division of the Supreme Court of the State of New York; February 17, 1997; New York; State Appellate Court
In the case concerning personal injury damages, Madrone Excavating Company, Inc. and its subrogee ITT Hartford Accident Indemnity Company appealed an order from the Supreme Court of Westchester County, which had ruled that New York Workers' Compensation Law was applicable. The court denied Madrone's motion to compel reimbursement from plaintiff Mark T. Carminucci for workers' compensation benefits paid by Hartford and granted a cross motion requiring Hartford to pay a share of litigation costs. The appellate court reversed this order, ruling that Connecticut law should apply to the reimbursement since the workers' compensation benefits were paid under Connecticut's Workers' Compensation Act. The appellate court granted Madrone's motion for full reimbursement of benefits paid to Carminucci and denied the plaintiffs' cross motion. It remitted the case for a hearing to determine the total amount of reimbursement owed to Hartford, taking into account both past and future benefits payable. The case highlighted that the employer's right to reimbursement for benefits paid is governed by the law of the state where the benefits were paid. Under Connecticut General Statutes § 31-293 (a), when both the employer and employee are plaintiffs in a lawsuit to recover damages from a third party, the employer's claim for reimbursement takes precedence over the employee's claim after deducting reasonable expenses, including attorney's fees. If the total damages exceed the employer's reimbursement needs, the excess is awarded to the employee. In this case, Madrone, as the employer of Mark T. Carminucci, through its subrogee Hartford, participated in a successful negligence action that resulted in damages exceeding $11 million. This amount far surpasses what is necessary for Hartford to be fully reimbursed for the workers’ compensation benefits paid. Consequently, Hartford is entitled to full reimbursement and is not required to share litigation expenses with the plaintiffs on a pro rata basis. The case is referred to the Supreme Court of Westchester County to determine the specific reimbursement amount owed to Hartford. Judges Goldstein, Florio, McGinity, and Luciano concur with this decision.