Relates to permitting a plaintiff to recover directly against a third party defendant found to be liable in certain actions

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          11239

                                  I N  A S S E M B L Y

                                       May 1, 2026
                                       ___________

        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Judiciary

        AN ACT to amend the civil practice law and rules, in relation to permit-
          ting a plaintiff to recover against a third party defendant in certain
          cases

          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 a new
     2  section 1405 to read as follows:
     3    § 1405. PERMITTING PLAINTIFF, AS JUDGMENT CREDITOR AGAINST  DEFENDANT,
     4  TO  RECOVER  AND  COLLECT  UNSATISFIED  JUDGMENT  OR PORTION OF JUDGMENT
     5  AGAINST THIRD-PARTY DEFENDANT OR CO-DEFENDANT LIABLE FOR CONTRIBUTION OR
     6  INDEMNIFICATION. (A) WHERE A PLAINTIFF HAS ENTERED A JUDGMENT AGAINST  A
     7  DEFENDANT  AND THE JUDGMENT REMAINS UNSATISFIED THIRTY DAYS AFTER IT HAS
     8  BEEN SERVED ON THE DEFENDANT-JUDGMENT DEBTOR,  AND  WHERE  JUDGMENT  HAS
     9  BEEN  ENTERED IN FAVOR OF THE DEFENDANT-JUDGMENT DEBTOR AGAINST A CO-DE-
    10  FENDANT OR THIRD-PARTY DEFENDANT ON A CAUSE OF ACTION  FOR  CONTRIBUTION
    11  OR FOR CONTRACTUAL OR COMMON LAW INDEMNIFICATION, THE PLAINTIFF-JUDGMENT
    12  CREDITOR  MAY COLLECT ANY UNSATISFIED AMOUNT OF THE PLAINTIFF'S JUDGMENT
    13  AGAINST THE DEFENDANT FROM THE CO-DEFENDANT OR THIRD-PARTY DEFENDANT  UP
    14  TO  THE AMOUNT AWARDED ON THE CAUSE OF ACTION FOR CONTRIBUTION OR INDEM-
    15  NIFICATION.
    16    (B) WHERE THE PLAINTIFF'S JUDGMENT  REMAINS  UNSATISFIED  THIRTY  DAYS
    17  AFTER IT HAS BEEN SERVED ON THE DEFENDANT-JUDGMENT DEBTOR, AND WHERE THE
    18  DEFENDANT-JUDGMENT  DEBTOR HAS A CAUSE OF ACTION FOR CONTRIBUTION OR FOR
    19  CONTRACTUAL OR COMMON LAW INDEMNIFICATION WHICH HAS NOT BEEN REDUCED  TO
    20  JUDGMENT, THE PLAINTIFF-JUDGMENT CREDITOR MAY ATTACH, OR TAKE AN ASSIGN-
    21  MENT  FROM  THE  DEFENDANT-JUDGMENT  DEBTOR  OF, THE CAUSE OF ACTION FOR
    22  CONTRIBUTION OR INDEMNIFICATION, AND PROSECUTE THE CAUSE  OF  ACTION  IN
    23  THE  PLAINTIFF'S  OWN  NAME  OR  IN  THE  NAME OF THE DEFENDANT-JUDGMENT
    24  DEBTOR, AND RECOVER A JUDGMENT THEREIN FOR THE SAME AMOUNT  OF  CONTRIB-
    25  UTION  OR  INDEMNIFICATION AS WOULD BE AWARDED TO THE DEFENDANT-JUDGMENT
    26  DEBTOR  IF  THE  DEFENDANT-JUDGMENT  DEBTOR  HAD  SATISFIED  PLAINTIFF'S
    27  ORIGINAL JUDGMENT IN FULL. SUCH REMEDY IS IN ADDITION TO ANY OTHER MEANS

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07136-01-5
        A. 11239                            2

     1  AVAILABLE  TO THE PLAINTIFF-JUDGMENT DEBTOR FOR ENFORCEMENT OF THE JUDG-
     2  MENT. THIS SECTION SHALL NOT AUTHORIZE DIRECT RECOVERY AGAINST A  THIRD-
     3  PARTY  DEFENDANT  IN  THOSE CIRCUMSTANCES IN WHICH THE THIRD-PARTY CLAIM
     4  AGAINST  THAT  THIRD-PARTY  DEFENDANT  WOULD  HAVE  BEEN  BARRED  BY THE
     5  PROVISIONS OF SECTION ELEVEN OF THE WORKERS' COMPENSATION LAW, AND  DOES
     6  NOT  OTHERWISE  PERMIT  A PLAINTIFF TO BRING A CAUSE OF ACTION AGAINST A
     7  THIRD PARTY IF SUCH THIRD PARTY WAS THE PLANTIFF'S EMPLOYER AT THE  TIME
     8  OF THE INCIDENT OR INJURY.
     9    §  2.  This  act shall take effect immediately, and shall apply to all
    10  judgments entered by plaintiffs on or after such date.