Bill Text: NY A04993 | 2013-2014 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to the undertaking required during the pendency of a stay of enforcement of a judgment against a participating or non-participating manufacturer under the master settlement agreement.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2014-06-13 - print number 4993b [A04993 Detail]

Download: New_York-2013-A04993-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4993--A
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 14, 2013
                                      ___________
       Introduced  by  M. of A. FARRELL, ORTIZ, WRIGHT, MAGNARELLI -- read once
         and referred to the Committee on Judiciary  --  committee  discharged,
         bill  amended,  ordered  reprinted  as amended and recommitted to said
         committee
       AN ACT to amend the civil practice law and rules,  in  relation  to  the
         undertaking required during the pendency of a stay of enforcement of a
         judgment  against  a  participating  or non-participating manufacturer
         under the master settlement agreement
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  Legislative intent. The legislature hereby finds that this
    2  amendment  of the laws governing the security necessary to stay enforce-
    3  ment of a judgment while on appeal is necessary to preserve the  revenue
    4  stream to the state provided under the master settlement agreement.
    5    S  2.  The  civil  practice  law  and rules is amended by adding a new
    6  section 5519-a to read as follows:
    7    S 5519-A. STAY OF ENFORCEMENT FOR MASTER SETTLEMENT AGREEMENT  PARTIC-
    8  IPATING  AND NON-PARTICIPATING MANUFACTURERS OR THEIR SUCCESSORS. (A) IN
    9  CIVIL LITIGATION UNDER ANY LEGAL THEORY THAT INVOLVES A PARTICIPATING OR
   10  NON-PARTICIPATING MANUFACTURER, AS THOSE TERMS ARE DEFINED IN THE MASTER
   11  SETTLEMENT AGREEMENT, OR ANY OF THEIR PARENTS OR SUCCESSORS, THE  UNDER-
   12  TAKING  REQUIRED  DURING  THE  PENDENCY  OF ALL APPEALS OR DISCRETIONARY
   13  REVIEWS BY ANY APPELLATE COURTS IN ORDER TO STAY THE  EXECUTION  OF  ANY
   14  JUDGMENT  OR  ORDER GRANTING LEGAL, EQUITABLE OR OTHER RELIEF DURING THE
   15  ENTIRE COURSE OF APPELLATE REVIEW, INCLUDING REVIEW BY THE UNITED STATES
   16  SUPREME COURT, SHALL BE SET PURSUANT TO THE APPLICABLE PROVISIONS OF LAW
   17  OR COURT RULES; PROVIDED, HOWEVER, THAT THE TOTAL  UNDERTAKING  REQUIRED
   18  OF  ALL  APPELLANTS  COLLECTIVELY  SHALL  NOT  EXCEED  TWO HUNDRED FIFTY
   19  MILLION DOLLARS, REGARDLESS OF  THE  VALUE  OF  THE  JUDGMENT  APPEALED.
   20  WHERE  THE  COURT  SETS THE UNDERTAKING IN AN AMOUNT LESS THAN THE JUDG-
   21  MENT, THE APPEAL SHALL BE DILIGENTLY PROSECUTED IN GOOD FAITH.   IF  THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08897-03-3
       A. 4993--A                          2
    1  APPEAL  IS  NOT  DILIGENTLY PROSECUTED IN GOOD FAITH, THE COURT MAY LIFT
    2  THE STAY OF ENFORCEMENT. IN ADDITION, IF A DEFENDANT FAILS TO  MAKE  ANY
    3  PAYMENTS  TO  THE STATE OR ITS POLITICAL SUBDIVISIONS AS MAY BE REQUIRED
    4  UNDER  THE  MASTER  SETTLEMENT  AGREEMENT,  EXCEPT FOR PAYMENTS THAT ARE
    5  DISPUTED IN GOOD FAITH, THE COURT SHALL HAVE DISCRETION TO LIFT THE STAY
    6  OF ENFORCEMENT.
    7    (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
    8  UPON A FINDING BY THE COURT THAT  AN  APPELLANT  IS  DISSIPATING  ASSETS
    9  OUTSIDE  THE COURSE OF ORDINARY BUSINESS TO AVOID PAYMENT OF A JUDGMENT,
   10  THE COURT MAY LIFT THE STAY OF ENFORCEMENT OR REQUIRE THE  APPELLANT  TO
   11  POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGMENT.
   12    (C)  UPON A SHOWING OF GOOD CAUSE THAT THE APPELLANT IS NOT DILIGENTLY
   13  PROSECUTING THE APPEAL IN GOOD FAITH AS SET FORTH IN SUBDIVISION (A)  OF
   14  THIS SECTION OR IS DISSIPATING ASSETS AS SET FORTH IN SUBDIVISION (B) OF
   15  THIS  SECTION,  AN  APPELLATE  COURT MAY LIFT THE STAY OF ENFORCEMENT OR
   16  REQUIRE APPELLANT TO POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT  OF
   17  THE JUDGMENT.
   18    (D)  AS USED IN THIS SECTION, "MASTER SETTLEMENT AGREEMENT" SHALL HAVE
   19  THE SAME MEANING AS SET FORTH IN SUBDIVISION FIVE  OF  SECTION  THIRTEEN
   20  HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   21    (E)  NOTHING  CONTAINED  IN  THIS SECTION SHALL BE READ TO ALLOW:  (I)
   22  SUCH PARTICIPATING MANUFACTURER  TO  CURTAIL  ITS  FINANCIAL  OBLIGATION
   23  UNDER  THE  MASTER  SETTLEMENT AGREEMENT; OR (II) SUCH NON-PARTICIPATING
   24  MANUFACTURER TO CURTAIL ITS OBLIGATION TO PLACE THE AMOUNTS SPECIFIED IN
   25  SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED NINETY-NINE-PP OF THE PUBLIC
   26  HEALTH LAW INTO A QUALIFIED ESCROW FUND AS DEFINED IN SUBDIVISION SIX OF
   27  SECTION THIRTEEN HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   28    S 3. This act shall take effect on the thirtieth day  after  it  shall
   29  have  become a law, and shall apply to any cause of action pending on or
   30  filed on or after such effective date.