Permits a plaintiff to recover directly against a third party defendant found to be liable to the defendant in certain actions.
Summary
Bill S05170 amends the civil practice law and rules to allow a plaintiff to recover unsatisfied judgments against a third-party defendant or co-defendant who is liable for contribution or indemnification. Specifically, if a plaintiff has a judgment against a defendant that remains unsatisfied for 30 days, they can collect the unsatisfied amount from a co-defendant or third-party defendant who has been found liable. Additionally, if the defendant has a cause of action for contribution or indemnification that has not been reduced to judgment, the plaintiff can attach that cause of action and prosecute it in their own name, potentially recovering the same amount that would have been awarded to the defendant.
Impact
The bill significantly alters the enforcement of judgments in civil cases by providing plaintiffs with a direct method to recover amounts owed from third parties. This change could lead to increased accountability among co-defendants and third-party defendants, as they may now face direct financial liability to the plaintiff if the primary defendant fails to satisfy a judgment. It also clarifies the limitations on recovery, ensuring that claims against employers are not permitted under this provision, which maintains protections under workers' compensation law.
Sentiment
The sentiment surrounding Bill S05170 appears to be mixed. The bill passed in the Senate with a vote of 40 to 18 and in the Assembly with a vote of 89 to 46, indicating a level of bipartisan support. However, the presence of dissenting votes suggests that there are concerns among some legislators regarding the implications of allowing plaintiffs to pursue third-party defendants directly, particularly in relation to the potential for increased litigation and liability.
Contention
Notable points of contention include concerns about the potential for abuse of the new recovery mechanism, particularly from those who argue that it could lead to increased litigation costs and burden on the judicial system. Some legislators expressed worries that allowing direct recovery from third-party defendants might undermine existing protections for employers and complicate the legal landscape for indemnification claims. Proponents argue that the bill enhances the ability of plaintiffs to secure justice and recover owed amounts effectively.
Prohibiting plaintiffs from filing abusive civil actions against certain defendants with whom the plaintiff has a current or former family, household or dating relationship and authorizing the court to impose prefiling restrictions on such plaintiffs.
Concerning defendants who fail to appear in court, and, in connection therewith, permitting certain conditions on pretrial release for defendants who have previously failed to appear.
An Act to amend and reenact ยงยง 8.01-66.1:1 and 38.2-2206 of the Code of Virginia, relating to underinsured motorist benefits; actions against released defendant.