White v. New York City Housing Authority
Defendant moved to vacate a judgment entered against it on April 23, 2007, alleging misrepresentation or misconduct by the plaintiff, pursuant to CPLR 5015 (a) (3). The case stemmed from a slip and fall accident where the plaintiff, an employee of United Home Care Services, Inc., received workers' compensation benefits. A settlement of $135,000 was reached, but a dispute arose concerning the satisfaction of a $76,322.78 workers' compensation lien held by the New York State Insurance Fund. Defendant argued that the satisfaction of the lien and direct payment to the lienholder were material conditions of the settlement, which the plaintiff failed to ensure in the tendered release documents. The court found the release defective for not providing for lien satisfaction, lacking the lienholder's agreement to an escrow, and omitting an indemnification clause for the defendant. Consequently, the judgment was vacated, although the defendant's request for attorney's fees was denied.