Bill Text: NY S03852 | 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 (Republican 1-0)

Status: (Engrossed - Dead) 2014-06-23 - referred to judiciary [S03852 Detail]

Download: New_York-2013-S03852-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3852--A
           Cal. No. 1190
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                   February 22, 2013
                                      ___________
       Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
         when printed to be committed to the Committee on Judiciary --  commit-
         tee  discharged  and  said bill committed to the Committee on Rules --
         ordered to a third reading, amended and ordered  reprinted,  retaining
         its place in the order of third reading
       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-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08897-02-3
       S. 3852--A                          2
    1  MENT,  THE  APPEAL SHALL BE DILIGENTLY PROSECUTED IN GOOD FAITH.  IF THE
    2  APPEAL IS NOT DILIGENTLY PROSECUTED IN GOOD FAITH, THE  COURT  MAY  LIFT
    3  THE  STAY  OF ENFORCEMENT. IN ADDITION, IF A DEFENDANT FAILS TO MAKE ANY
    4  PAYMENTS  TO  THE STATE OR ITS POLITICAL SUBDIVISIONS AS MAY BE REQUIRED
    5  UNDER THE MASTER SETTLEMENT AGREEMENT,  EXCEPT  FOR  PAYMENTS  THAT  ARE
    6  DISPUTED IN GOOD FAITH, THE COURT SHALL HAVE DISCRETION TO LIFT THE STAY
    7  OF ENFORCEMENT.
    8    (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
    9  UPON  A  FINDING  BY  THE  COURT THAT AN APPELLANT IS DISSIPATING ASSETS
   10  OUTSIDE THE COURSE OF ORDINARY BUSINESS TO AVOID PAYMENT OF A  JUDGMENT,
   11  THE  COURT  MAY LIFT THE STAY OF ENFORCEMENT OR REQUIRE THE APPELLANT TO
   12  POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGMENT.
   13    (C) UPON A SHOWING OF GOOD CAUSE THAT THE APPELLANT IS NOT  DILIGENTLY
   14  PROSECUTING  THE APPEAL IN GOOD FAITH AS SET FORTH IN SUBDIVISION (A) OF
   15  THIS SECTION OR IS DISSIPATING ASSETS AS SET FORTH IN SUBDIVISION (B) OF
   16  THIS SECTION, AN APPELLATE COURT MAY LIFT THE  STAY  OF  ENFORCEMENT  OR
   17  REQUIRE  APPELLANT TO POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF
   18  THE JUDGMENT.
   19    (D) AS USED IN THIS SECTION, "MASTER SETTLEMENT AGREEMENT" SHALL  HAVE
   20  THE  SAME  MEANING  AS SET FORTH IN SUBDIVISION FIVE OF SECTION THIRTEEN
   21  HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   22    (E) NOTHING CONTAINED IN THIS SECTION SHALL BE READ  TO  ALLOW:    (I)
   23  SUCH  PARTICIPATING  MANUFACTURER  TO  CURTAIL  ITS FINANCIAL OBLIGATION
   24  UNDER THE MASTER SETTLEMENT AGREEMENT; OR  (II)  SUCH  NON-PARTICIPATING
   25  MANUFACTURER TO CURTAIL ITS OBLIGATION TO PLACE THE AMOUNTS SPECIFIED IN
   26  SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED NINETY-NINE-PP OF THE PUBLIC
   27  HEALTH LAW INTO A QUALIFIED ESCROW FUND AS DEFINED IN SUBDIVISION SIX OF
   28  SECTION THIRTEEN HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   29    S  3.  This  act shall take effect on the thirtieth day after it shall
   30  have become a law, and shall apply to any cause of action pending on  or
   31  filed on or after such effective date.