New York State Court of Claims

New York State Court of Claims

DUNCAN v. THE STATE OF NEW YORK, #2001-009-046, Claim No. 101552, Motion No. M-63818


Synopsis


Defendant's motion for a stay of all proceedings, based upon an Order of Liquidation granted by a Pennsylvania court in connection with a rehabilitation proceeding against Reliance Ins. Co. (insurer of the defendant), was granted.

Case Information

UID:
2001-009-046
Claimant(s):
RICHARD DUNCAN
Claimant short name:
DUNCAN
Footnote (claimant name) :

Defendant(s):
THE STATE OF NEW YORK
Footnote (defendant name) :

Third-party claimant(s):

Third-party defendant(s):

Claim number(s):
101552
Motion number(s):
M-63818
Cross-motion number(s):

Judge:
NICHOLAS V. MIDEY, JR.
Claimant's attorney:
KENNY & KENNY, ESQS.
BY: Michael P. Kenny, Esq.,Of Counsel.
Defendant's attorney:
HON. ELIOT SPITZER
Attorney General
BY: COLUCCI & GALLAHER, P.C.
John J. Marchese, Esq.,Of Counsel.
Third-party defendant's attorney:

Signature date:
October 11, 2001
City:
Syracuse
Comments:

Official citation:

Appellate results:

See also (multicaptioned case)



Decision

Defendant has brought this motion seeking an order granting a stay of all proceedings in this claim.

The following papers were considered by the Court in connection with this motion:
Notice of Motion, Affidavit, with Exhibits 1,2


Memorandum of Law 3

Affirmation in Opposition 4


Letter from John J. Marchese, Esq., dated October 4, 2001, with Attachments 5

In his supporting affidavit, defendant's counsel states that for the acts alleged in this claim, defendant is covered by an insurance policy issued by Reliance Insurance Company (Reliance). Reliance is a Pennsylvania insurance company regulated by the Insurance Department of the Commonwealth of Pennsylvania. On May 29, 2001, Reliance was placed in Rehabilitation through the petition of the Pennsylvania Insurance Commissioner. The Commissioner was appointed as Rehabilitator of Reliance under this Order. The Order of Rehabilitation also included a provision which stayed all actions against Reliance and the insureds of Reliance, both in Pennsylvania and elsewhere. This stay was granted for a period of 60 days, or such additional time as requested by the Rehabilitator.

Subsequently, this Court was notified by correspondence from defendant's attorney dated October 4, 2001 (see Item 5) that Reliance was placed into liquidation on October 3, 2001, by virtue of a petition for liquidation filed by the Insurance Commissioner of the Commonwealth of Pennsylvania. In the Order of Liquidation, entered October 3, 2001, the Commonwealth Court imposed a 90 day stay of all proceedings involving Reliance, and requested all Courts outside the Commonwealth of Pennsylvania to recognize and honor this stay.

Accordingly, based upon the Order of Liquidation issued by the Commonwealth Court of Pennsylvania, it is

ORDERED, that Motion No. M-63818 is hereby GRANTED; and it is further

ORDERED, that all proceedings in this claim are stayed for 90 days from the date of filing of this order, which stay shall also apply to the Court ordered discovery schedule presently in effect; and it is further

ORDERED, that upon completion of the stay, a conference will be scheduled by the Court at which time a date for the completion of discovery will be established.


October 11, 2001
Syracuse, New York

HON. NICHOLAS V. MIDEY, JR.
Judge of the Court of Claims