NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2528
SPONSOR: Dinowitz TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to expe-
diting actions involving insurance claims for damages resulting from a
state disaster emergency
PURPOSE:
To expedite actions involving insurance claims for damages resulting
from a state disaster emergency and to provide mandatory guidelines
SUMMARY OF PROVISIONS:
Section one of the bill adds rules 3411, 3412, and 3413 to the civil
practice law and rules creating a mandatory expedited preliminary
conference for property damage claims against insurers for damages
sustained by insureds in counties where a state disaster emergency has
declared by the governor pursuant to section twenty-eight of the execu-
tive law.
Section two of the bill adds paragraph 8 to subdivision (a) of rule 3403
of the civil practice law and rules to allow such litigation to be
granted a special trial preference, thus expediting ultimate resolution
of same.
Section three of the bill sets the effective date
JUSTIFICATION:
Where many insurers have dealt with the victims of property damage loss-
es sustained as the result of State Disaster Emergencies, including
Storm Sandy, in a responsible and timely manner, some insurers have not.
This has resulted in litigation by property owners, i.e. homeowners, to
enforce their rights under contracts of insurance. Many of these proper-
ty owner insured's have sustained utter financial ruin due to severe
property damage losses, and this bill seeks to allow for a swift and
certain resolution of their claims against their insurers in Court. For
example, there is no reason why an individual who has lost their home
and all of their belongings due to Storm Sandy should have to wait years
for their claims against their insurer to be adjudicated in court. This
bill requires that upon institution of an action by an insured against
an insurer for damages related to a State Disaster Emergency as declared
by the Governor, the Court shall hold a preliminary conference within
thirty days after the request for judicial intervention is filed.
LEGISLATIVE HISTORY:
2023-24: A.1804 - Judiciary / 5.4638 - Judiciary
2021-22: A.2189-A - Third Calendar Reading
2019-20: A.7189-A - Third Calendar Reading
2017-18: A. 6208 - Third Reading Calendar / S.8756 - Judiciary
2015-16: A.2946 - Passed Assembly/ 5.6946 - Judiciary
2013-14: A.5570 - Third Reading Calendar/S.5531 - Judiciary
FISCAL IMPLICATIONS:
No negative effects anticipated. If contractual claims against insurers
are resolved in a more timely manner, there may be some positive effects
upon State and Local government disaster-related expenditures.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2528
2025-2026 Regular Sessions
IN ASSEMBLY
January 17, 2025
___________
Introduced by M. of A. DINOWITZ, WEPRIN, WALKER, BUTTENSCHON, OTIS,
SAYEGH -- read once and referred to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to expe-
diting actions involving insurance claims for damages resulting from a
state disaster emergency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The civil practice law and rules is amended by adding three
2 new rules 3411, 3412 and 3413 to read as follows:
3 Rule 3411. Mandatory preliminary conference in certain insurance
4 actions. (a) In any action involving an insurance claim for damages
5 occurring to property in a county where a state disaster emergency has
6 been declared by the governor pursuant to section twenty-eight of the
7 executive law relating to any claim arising from the cause of such
8 declaration, the court shall hold a preliminary conference within thirty
9 days after the request for judicial intervention is filed.
10 (b) At any conference held pursuant to this rule, all parties shall
11 appear in person or by counsel, and if appearing by counsel, such coun-
12 sel shall be fully authorized to dispose of the case. In the court's
13 discretion, the court may permit a representative of any party to attend
14 the settlement conference telephonically or by video-conference.
15 (c) Upon filing of a request for judicial intervention, the court
16 shall promptly send a notice to parties advising them of the time and
17 place of the conference, the purpose of the conference and the require-
18 ments of this rule. The notice shall be in a form prescribed by the
19 office of court administration, or, at the discretion of the office of
20 court administration, the administrative judge of the judicial district
21 in which the action is pending, and shall advise the parties of the
22 documents that they should bring to the conference.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04444-01-5
A. 2528 2
1 (d) No adjournment in excess of ten days shall be granted by the court
2 for any such preliminary conference, and such an adjournment shall only
3 be granted upon good cause shown.
4 (e) Discovery shall be completed within sixty days from the date of
5 the preliminary conference, and penalties may be assessed against any
6 party as per section thirty-one hundred twenty-six of this chapter for
7 refusal to comply with discovery within said sixty day time period. The
8 court may extend said sixty day time period sua sponte in the interest
9 of justice, or upon good cause shown by any party.
10 Rule 3412. Mandatory settlement conference in certain insurance
11 actions. In any action involving an insurance claim for damages occur-
12 ring to property in a county where a state disaster emergency has been
13 declared by the governor pursuant to section twenty-eight of the execu-
14 tive law relating to any claim arising from the cause of such declara-
15 tion, the court shall hold a mandatory settlement conference within
16 fourteen days after a note of issue has been filed for the purpose of
17 holding settlement discussions pertaining to such insurance claims.
18 Rule 3413. Motions in certain insurance actions. (a) Notwithstanding
19 subdivision (a) of rule thirty-two hundred twelve of this chapter, in
20 any action involving an insurance claim for damages occurring to proper-
21 ty in a county where a state disaster emergency has been declared by the
22 governor pursuant to section twenty-eight of the executive law relating
23 to any claim arising from the cause of such declaration, all pre-trial
24 motions shall be made within thirty days after the note of issue is
25 filed.
26 (b) This rule shall not apply to claims involving reinsurance.
27 § 2. Subdivision (a) of rule 3403 of the civil practice law and rules
28 is amended by adding a new paragraph 8 to read as follows:
29 8. an action to recover damages resulting from damage to property in a
30 county caused by a natural disaster upon declaration of a state disaster
31 emergency by the governor pursuant to section twenty-eight of the execu-
32 tive law relating to any claim arising from the cause of such declara-
33 tion.
34 § 3. This act shall take effect immediately.
