Artibee v. Home Place Corp., 28 N.Y.3d 216 (2017)

CPLR 1601 does not allow a Supreme Court defendant to apportion liability to the State of New York in a personal injury case, as sovereign immunity prevents the claimant from obtaining jurisdiction over the state in Supreme Court, thus triggering the exception to apportionment.

Summary

In Artibee v. Home Place Corp., the New York Court of Appeals addressed whether a defendant in a Supreme Court personal injury action could apportion liability to the State of New York, even though the plaintiff had also filed a claim against the State in the Court of Claims. The Court held that under CPLR 1601, apportionment was not permissible. The Court reasoned that sovereign immunity deprived the plaintiff of the ability to obtain jurisdiction over the State in Supreme Court. The Court emphasized the statute’s strict construction and legislative history to support its decision, ultimately reversing the Appellate Division’s modification that allowed for apportionment against the State.

Facts

Carol Artibee was injured when a tree branch fell on her vehicle while traveling on a state highway. She sued Home Place Corporation, alleging negligence for failing to maintain the tree. Artibee also filed a claim against the State of New York in the Court of Claims, alleging the Department of Transportation was negligent in maintaining the highway. Home Place moved to introduce evidence of the State’s negligence and requested a jury instruction to apportion liability between Home Place and the State. The Supreme Court initially denied the apportionment, but the Appellate Division reversed. The Court of Appeals then reviewed the Appellate Division’s order.

Procedural History

The case began in Supreme Court, with Artibee suing Home Place Corporation. The Supreme Court denied Home Place’s motion for a jury instruction on apportionment of liability to the State, finding that CPLR 1601 did not permit apportionment against the State. The Appellate Division reversed the Supreme Court’s ruling, holding that apportionment against the State was permissible. The Court of Appeals granted the plaintiffs leave to appeal, certifying the question of whether the Appellate Division erred in its order of modification.

Issue(s)

1. Whether CPLR 1601 permits apportionment of liability to the State of New York in a Supreme Court personal injury action where sovereign immunity prevents the plaintiff from joining the State as a co-defendant.

Holding

1. No, because CPLR 1601 does not allow apportionment of liability to the State in Supreme Court when the claimant cannot obtain jurisdiction over the State in Supreme Court due to sovereign immunity.

Court’s Reasoning

The Court of Appeals focused on the interpretation of CPLR 1601(1). The statute modifies the common-law rule of joint and several liability and limits a joint tortfeasor’s liability for non-economic losses, provided that the tortfeasor is 50% or less at fault. The statute states that non-party tortfeasor’s relative culpability must not be considered in apportioning fault "if the claimant . . . with due diligence . . . was unable to obtain jurisdiction over such person in said action". The Court found that the restriction on Supreme Court imposed by sovereign immunity is jurisdictional in nature, specifically citing the New York Constitution, which preserves the State’s historical sovereign immunity from suit. The Court emphasized the exclusive jurisdiction of the Court of Claims over claims against the State. As the Court stated, "[i]nasmuch as no claimant can obtain jurisdiction over the State in Supreme Court and the statute does not, by its terms, otherwise authorize the apportionment of liability against the State in that court, we agree with plaintiff that defendant was not entitled to a jury charge on apportionment in this action."

The Court rejected Home Place’s argument that "jurisdiction" in the statute referred to personal jurisdiction. The Court held that reading "personal" into the statute would be an interpretation broader than the statutory language. The Court further stated that, as CPLR 1601 is a statute in derogation of the common law, it must be strictly construed, and by its terms, it does not specify that the inability to obtain jurisdiction must have a particular cause. Moreover, the Court emphasized that reading the word "jurisdiction" as limited to "personal jurisdiction" effectively renders meaningless the phrase "in said action [ ] or in a claim against the state" in CPLR 1601 (1).

The Court also analyzed the legislative history, which did not support Home Place’s interpretation. The Court noted the statute’s purpose was to alleviate the liability insurance crisis and acknowledged the careful balance of interests that went into this statute. The Court reasoned that as the State is not insolvent, and that a defendant could seek contribution from the State in the Court of Claims. The Court concluded that a strict construction of the statute did not result in inequity and promoted equity.

Practical Implications

This decision clarifies the limits on apportionment of liability in New York personal injury cases involving the State. The ruling emphasizes that a defendant in Supreme Court cannot have the jury consider the State’s potential liability. The case suggests that if a defendant believes the State is liable, it must pursue its remedy through a claim for contribution in the Court of Claims. This will affect how attorneys analyze similar cases, particularly those involving governmental entities and their potential liability. Additionally, this ruling highlights the importance of understanding the interplay between sovereign immunity, the Court of Claims’ exclusive jurisdiction, and the apportionment rules set forth in CPLR 1601. This case also reinforces the impact of strict construction of statutes in derogation of common law.