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Jimenez Jr. v. Corona

Court Declines to Recognise Settlement From Mediation; Trial on Subrogation Issue Needed

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Papers NumberedNYSCEF docs. 32-38 & 50DECISION AND ORDER

*1 The parties have filed a motion and cross-motion to compel the terms of a general release and requiring its execution.The parties proceeded to a mediation where they thought that they had settled the action and their dispute stemming from a vehicular accident at a toll plaza in New Jersey on July 6, 2015. Based on plaintiffs’ residence in Queens County, New York, an action was commenced in this Court, followed by mediation. At the mediation proceeding, the parties did not agree whether or not the purported settlement would extinguish the rights of plaintiff’s insurer to proceed against defendant in a future subrogation action for no fault first-party benefits. Instead, the parties turn to the Court to compel a settlement and the terms of a general release favorable to their positions.The Appellate Division has held that whether or not an insurer can proceed with a post-settlement subrogation claim turns on the exact terms of the settlement and the release. Compare Group Health, Inc. v. Mid-Hudson Cablevision, Inc., 58 A.D.3d 1029, 1031 (3rd Dept. 2009) (“[I]nasmuch as it is undisputed here that defendants, the third-party tortfeasors, had knowledge of plaintiff’s subrogation rights, the settlement has no

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