Relates to permitting a plaintiff to recover directly against a third party defendant found to be liable in certain actions

◆ The sponsor's argument

Why James Skoufis says this is needed

A plaintiff's recovery of a judgment that ultimately comes from a third- party defendant should not depend on the fortuity of the solvency of the defendant/third-party plaintiff. Accordingly, this measure would allow a plaintiff to recover on a judgment for contribution or indemnification directly against the third-party defendant, whether or not the defendant/third-party plaintiff has satisfied the underlying judgment for which contribution or indemnification is sought. Thus, in the case where a defendant/third-party plaintiff is insolvent and is unable to pay the judgment to the plaintiff, the plaintiff could still seek to recover that portion of the judgment directly, as determined by the principles of contribution and indemnification owed by the third-party defendant to the defendant/third-party plaintiff. This bill also seeks to protect the ability of an injured plaintiff to collect a judgment in the event a defendant-judgment debtor's cause of action or judgment against a 3rd party; the wrongdoer is extinguished in bankruptcy, leav- ing the plaintiff with no remedy to collect their judgment. This measure would not alter the substantive law of Workers' Compen- sation. The 1996 Omnibus Worker's Compensation Reform Act already limits claims for contribution and indemnification against an employer to cases involving "grave injuries." In cases where there are no grave injuries, the employer is not liable as a matter of substantive law, and there- fore, this measure would not affect such employees at all.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.