Aetna Life & Casualty Co. v. Nelson
Plaintiff sued defendants, their insureds, to recoup first-party no-fault benefits. Both parties agreed there were no triable issues of fact, disputing only the timeliness of the action commenced on November 7, 1983. Plaintiff argued accrual on April 28, 1981, upon settlement of a Court of Claims action, while defendants claimed accrual on September 23, 1980, when the Court of Claims judgment was entered. Special Term initially applied a six-year limitation period (CPLR 213 [1]) but alternatively found the action timely under a three-year period (CPLR 214 [2]). The appellate court held the appropriate period of limitation is three years (CPLR 214 [2]) for actions upon a liability imposed by statute, such as enforcing a lien under Insurance Law § 5104 [b]. The court affirmed Special Term's alternative finding that the cause of action did not accrue until the underlying Court of Claims action was finally settled, entitling the plaintiff to summary judgment.