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Case Law Database

Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

Smith v. Sipe

The dissenting opinion argues for the dismissal of a complaint alleging a breach of the duty of fair representation by a labor organization. The judge contends that merely providing incorrect advice, as alleged against the union representative, does not constitute the type of egregious conduct—arbitrary, discriminatory, or bad faith actions—that the duty of fair representation was established to prevent. While acknowledging a developing area of law where some courts have extended this duty to include negligence, the majority of jurisdictions maintain a stricter interpretation. The dissent emphasizes that the duty was created to prevent invidious treatment, not to address simple negligence. Therefore, the complaint's allegations are deemed insufficient to establish a cause of action for breach of this duty.

Duty of Fair RepresentationLabor LawUnion ConductGrievance ProcedureNegligenceArbitrary ConductBad FaithDiscriminatory ConductDissenting OpinionJudicial Interpretation
References
23
Case No. MISSING
Regular Panel Decision
Jul 15, 2004

Portlette v. Toussaint

The plaintiff appealed an order from the Supreme Court, Rockland County, which granted the defendants’ motion to dismiss the complaint for failure to state a cause of action regarding breach of a duty of fair representation, and denied the plaintiff's cross-motion for leave to serve an amended complaint. The appellate court affirmed the order, concluding that the complaint lacked sufficient factual allegations to support the claim. The decision cited several precedents to support the dismissal. Additionally, the plaintiff's other arguments were found to be without merit.

Breach of Duty of Fair RepresentationMotion to DismissAmended ComplaintAppellate AffirmationCivil ProcedureCPLR 3211Rockland CountySupreme CourtSufficiency of Pleadings
References
7
Case No. MISSING
Regular Panel Decision

Shamshovich v. Shvartsman

The plaintiff initiated an action to recover damages for breach of fiduciary duty and secured a judgment against the defendant, Samuel Racer, in 2000. This judgment, however, was not formally entered until 2010. Subsequently, in 2012, Racer moved to vacate the judgment, contending that the plaintiff had abandoned the action by failing to timely enter the judgment, citing 22 NYCRR 202.48. The Supreme Court initially granted Racer's motion without providing an explanation. Upon appeal, the higher court reversed this decision, denying Racer's motion to vacate and reinstating the original judgment. The appellate court determined that 22 NYCRR 202.48 was inapplicable as no further judicial action was required for the judgment's entry, and Racer failed to present any other valid grounds for vacatur under CPLR 5015 (a).

Fiduciary DutyJudgment VacaturAppellate ReviewProcedural RulesCivil ProcedureDefault JudgmentTimelinessRule 22 NYCRR 202.48CPLR 5015(a)Kings County
References
15
Case No. 2018 NY Slip Op 28102
Regular Panel Decision
Apr 02, 2018

Pozner v. Fox Broadcasting Co.

Cliff Pozner, a former executive at Fox Broadcasting Company, was terminated following sexual harassment complaints from employees. Pozner subsequently initiated a lawsuit against Fox for breach of his employment contract. In response, Fox filed counterclaims alleging breach of contract and breach of fiduciary duty, referencing company handbooks and established policies. Pozner moved to dismiss these counterclaims, contending that the employee handbooks lacked contractual enforceability and that his actions did not constitute a breach of fiduciary duty under prevailing legal standards. The court upheld the breach of contract counterclaim, recognizing that the handbooks were explicitly integrated into Pozner's employment agreement, but dismissed the breach of fiduciary duty counterclaim, stating that sexual harassment alone, without direct actions against the employer's financial interests, does not typically establish a breach of loyalty claim in New York.

Employment contractBreach of contractBreach of fiduciary dutySexual harassmentCounterclaimsMotion to dismissDuty of loyaltyCorporate policiesEmployee handbooksExecutive termination
References
8
Case No. MISSING
Regular Panel Decision

Curran v. International Union, Oil, Chemical & Atomic Workers

Plaintiff, an employee of Carborundum Company, suffered a partial hand amputation in a "rubber roll" machine accident on March 8, 1979. He sued his unions, International Union, Oil, Chemical & Atomic Workers, AFL-CIO, and Abrasive Workers, Local 8-12058, Oil, Chemical & Atomic Workers International Union, alleging state law negligence for failing to safeguard him from dangers and a federal claim for breaching their duty of fair representation. The unions moved for summary judgment, arguing federal law preempts the negligence claim and they did not breach their duty of fair representation. The court granted the unions' motion regarding the negligence claim, ruling that a union's duty to its members, arising from a collective bargaining agreement, is governed exclusively by federal law and does not include a duty of care. However, the court denied the motion regarding the breach of fair representation claim, finding sufficient facts and allegations to infer that the unions may have discharged their duty in an arbitrary, perfunctory manner or in bad faith, thus leaving triable issues of fact.

Union LiabilityDuty of Fair RepresentationNegligence ClaimFederal PreemptionCollective Bargaining AgreementSummary Judgment MotionLabor LawWorkplace AccidentSafety and Health CommitteeArbitrary Union Action
References
8
Case No. MISSING
Regular Panel Decision
Aug 11, 2005

Lumbermens Mutual Casualty Co. v. Franey Muha Alliant Insurance Services

Lumbermens Mutual Casualty Company sued Franey Muha Alliant Insurance Services and related entities, an insurance agent, alleging negligence, breach of contract, breach of fiduciary duty, and breach of good faith and fair dealing. Lumbermens sought indemnity for losses under a reinsurance contract with Hanover, for which Franey acted as an intermediary. Lumbermens had rejected an Allegheny Bond presented by Franey, but Hanover subsequently issued it, leading to Lumbermens' liability under the existing reinsurance treaty. The court denied Lumbermens' motion for partial summary judgment, finding Franey was not its express agent for the Allegheny Bond. It dismissed Lumbermens' breach of contract claim but allowed its negligence and fiduciary duty claims to proceed, as genuine issues of material fact remained regarding Franey's duties and knowledge.

agency agreementreinsurance treatysummary judgmentbreach of contractfiduciary dutynegligenceinsurance agentinsurance brokerquota-sharesurety bonds
References
33
Case No. MISSING
Regular Panel Decision
Jan 01, 2017

State of New York Workers' Compensation Board v. Wang

The New York State Workers’ Compensation Board, as successor in interest to the insolvent Health Care Providers Self-Insurance Trust, brought an action against Program Risk Management, Inc. (PRM), PRM Claims Services, Inc. (PRMCS), and numerous individual trustees and administrators, alleging various causes of action including breach of contract, breach of fiduciary duty, fraud, and negligent misrepresentation. This case involves cross-appeals from Supreme Court orders that partially granted defendants' motions to dismiss and plaintiff's cross-motion to amend the complaint. The Appellate Division reviewed the application of statutes of limitations to various claims, generally upholding the limitations but reversing some dismissals related to breach of contract, breach of fiduciary duty, negligent misrepresentation, and common-law indemnification. The court also modified the Supreme Court's decisions regarding leave to amend the complaint, limiting some aiding and abetting claims while allowing others to proceed against specific defendants. The decision clarified the plaintiff's standing and the duties owed by the various parties to ensure the trust's solvency.

Workers' Compensation CoverageSelf-Insurance TrustInsolvencyBreach of ContractBreach of Fiduciary DutyFraudNegligent MisrepresentationAlter Ego LiabilityCommon-Law IndemnificationStatute of Limitations
References
84
Case No. MISSING
Regular Panel Decision

Faraino v. Centennial Insurance

This case addresses whether an insurer, having received a loan receipt from its insured, has a duty of good faith beyond mere payment. The court holds that such a duty is created by equity, implied contractual covenants, and the conflict of interest arising from the insurer's exclusive control over the insured's claims. The plaintiff boat owner alleged the insurers failed to provide independent counsel, policy information, or investigation results, potentially breaching this obligation. Consequently, the insurers' motion for summary judgment and dismissal was denied, affirming their proper joinder as defendants. The court also raises the possibility that the insurers' conduct could constitute a waiver of their subrogation rights.

Good Faith DutyInsurer ObligationsLoan ReceiptSubrogation RightsConflict of InterestInsurance Contract LawSummary Judgment DenialAttorney FeesEquitable PrinciplesContractual Subrogation
References
24
Case No. MISSING
Regular Panel Decision

Servidone Construction Corp. v. Security Insurance

The case examines if an insurer's breach of the duty to defend obligates it to indemnify the insured for a settlement, even when coverage is contested. Plaintiff Servidone Construction Corporation, an insured, settled an underlying claim after its insurer, Security Insurance Company, withdrew defense citing a policy exclusion. The lower courts ruled that Security was liable to indemnify Servidone due to its breach and the possibility of coverage. The Court of Appeals reversed, asserting that a duty to indemnify only arises from an actual covered loss, not merely from a breach of the duty to defend. It placed the burden on the insurer to prove the loss was not covered and remitted the case for further proceedings to determine actual policy coverage.

Duty to DefendDuty to IndemnifyBreach of ContractInsurance LawSettlement AgreementCoverage DisputeWorkers' CompensationFederal Tort Claims ActCommon Law IndemnityContractual Indemnity
References
13
Case No. MISSING
Regular Panel Decision
Aug 28, 1985

Angel Music, Inc. v. ABC Sports, Inc.

Angel Music, Inc., along with a class of music publishers, sued ABC Sports, Inc. and The Harry Fox Agency, Inc. (Fox), alleging copyright infringement against ABC and breach of fiduciary duty against Fox. The copyright infringement claim stemmed from ABC's alleged unauthorized use of a copyrighted song in an Olympics broadcast. Angel Music contended Fox, acting as their trustee and agent, breached its fiduciary duty by failing to enforce their synchronization rights. Fox moved to dismiss for lack of subject matter jurisdiction, arguing the breach of fiduciary duty was a state law claim without diversity. The court granted Fox's motion, concluding there was insufficient factual overlap for pendent party jurisdiction but allowed Angel Music to renew the claim after discovery if a relevant defense involving Fox emerged.

Copyright InfringementBreach of Fiduciary DutySubject Matter JurisdictionPendent JurisdictionPendent Party JurisdictionFederal Question JurisdictionClass ActionSynchronization RightsMusic PublishersTelevision Producers
References
12
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