RETRIEVE BILL
 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2944
 
                               2003-2004 Regular Sessions
 
                    IN SENATE
 
                                     March 12, 2003
                                       ___________
 
        Introduced by Sens. VOLKER, ALESI, FARLEY, GOLDEN, JOHNSON, McGEE, MORA-
          HAN, NOZZOLIO, PADAVAN, RATH, TRUNZO, WRIGHT -- read twice and ordered
          printed, and when printed to be committed to the Committee on Codes
 
        AN  ACT  to  amend  the civil practice law and rules, the labor law, the
          not-for-profit corporation law, the vehicle and traffic law, the court
          of claims act, the general municipal law, the town  law,  the  village
          law, the judiciary law and the general obligations law, in relation to
          enacting  the civil justice reform act relating to civil liability and
          to repeal article 16, section 214-d, subdivision (h) of rule 3211  and
          subdivision  (i)  of rule 3212 of the civil practice law and rules and
          section 241-a of the labor law relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act shall be entitled and may be referred to as the
     2  "civil justice reform act".
     3    § 2. Section 3012-a of the civil  practice  law  and rules, as amended
     4  by  chapter  507  of  the  laws  of 1987, is amended to read as follows:
     5    § 3012-a. Certificate of merit in medical, dental and  podiatric malp-
     6  ractice actions and actions against all other professionals. (a) In  any
     7  action    for medical, dental or podiatric malpractice, or in any action
     8  for damages, contribution or indemnity arising out of alleged negligence
     9  of a professional subject to the provisions of title VIII of the  educa-
    10  tion  law, the complaint shall be accompanied by a certificate, executed
    11  by the  attorney  for  the plaintiff, or other party asserting the cause
    12  of action, declaring that:
    13    (1) the attorney has reviewed the facts of the case and has  consulted
    14  with at least one physician in medical malpractice actions, at least one
    15  dentist  in  dental malpractice actions [or], at least one podiatrist in
    16  podiatric malpractice actions, or at least one professional in the  same
    17  profession  as  the  person  or persons defendant in the subject suit in
    18  other professional malpractice or negligence actions and who is licensed
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04675-01-3

        S. 2944                             2
 
     1  to practice in this state or  any  other  state  and  who  the  attorney
     2  reasonably believes is knowledgeable in the  relevant issues involved in
     3  the  particular  action, and who has signed an affidavit concluding that
     4  there  is  a  reasonable  basis  for the commencement of an action, such
     5  affidavit shall accompany the certificate required by this section,  and
     6  that  the  attorney  has  concluded  on  the basis of such review [and],
     7  consultation and affidavit that there is a reasonable  basis  for    the
     8  commencement of such action; or
     9    (2)  the  attorney  was  unable to obtain the consultation and affida-
    10  vit required by paragraph one of this subdivision because  a  limitation
    11  of  time,  established  by  article  two  of this chapter, would bar the
    12  action and that the certificate  required  by  paragraph  one   of  this
    13  subdivision  could  not reasonably be obtained before such time expired.
    14  If  a   certificate   is executed   pursuant to  this  subdivision,  the
    15  certificate  required  by this section  shall  be  filed  within  ninety
    16  days  after  service  of  the complaint; or
    17    (3) the attorney was unable to obtain  the  consultation and affidavit
    18  required by paragraph one of this subdivision because the  attorney  had
    19  made  three separate good faith attempts with three separate physicians,
    20  dentists [or], podiatrists or subject professionals, in accordance  with
    21  the  provisions  of  paragraph  one  of  this subdivision to obtain such
    22  consultation and affidavit and none of those contacted  would  agree  to
    23  such a consultation and affidavit.
    24    (b) Where a certificate is required pursuant to this section, a single
    25  certificate  shall  be  filed  for  each  action,  even if more than one
    26  defendant has been named in the complaint or is subsequently named.
    27    (c)  Where the attorney intends to rely solely on the doctrine of "res
    28  ipsa  loquitur", this section shall be inapplicable.  In such cases, the
    29  complaint shall be accompanied by a certificate, executed by the  attor-
    30  ney, declaring that the attorney is solely relying on such doctrine and,
    31  for that reason, is not filing a certificate required by this section.
    32    (d)  If  a request by the plaintiff for the records of the plaintiff's
    33  medical or dental treatment by the defendants has  been  made  and  such
    34  records  have  not been produced, the plaintiff shall not be required to
    35  serve the certificate required by this section until ninety  days  after
    36  such records have been produced.
    37    (e) For purposes of this section, and subject  to  the  provisions  of
    38  section  thirty-one hundred one of this chapter, an attorney who submits
    39  a certificate as required by paragraph one or two of subdivision (a)  of
    40  this  section  and  the  physician,  dentist [or], podiatrist or subject
    41  professionals with whom the attorney consulted shall not be required  to
    42  disclose  the  identity  of  the  physician, dentist [or], podiatrist or
    43  subject professionals consulted and the contents  of  such  consultation
    44  and  affidavit;  provided, however, that when the attorney makes a claim
    45  under paragraph three of subdivision (a) of this  section  that  he  was
    46  unable to obtain the required consultation and affidavit with the physi-
    47  cian,  dentist [or], podiatrist or subject professionals, the court may,
    48  upon the request of a defendant made prior to compliance by  the  plain-
    49  tiff with the provisions of section thirty-one hundred one of this chap-
    50  ter,  require  the  attorney to divulge to the court the names of physi-
    51  cians, dentists [or], podiatrists or subject professionals refusing such
    52  consultation and affidavit.
    53    (f) The provisions of this section shall not be applicable to a plain-
    54  tiff who is not represented by an attorney.
    55    (g) The plaintiff may, in lieu of serving the certificate required  by
    56  this  section,  provide the defendant or defendants with the information

        S. 2944                             3
 
     1  required  by paragraph one  of  subdivision  (d)  of  section thirty-one
     2  hundred one of this chapter within the period of time prescribed by this
     3  section.
     4    (h)  The  subject professional or professionals consulted may not be a
     5  party to the litigation.
     6    (i) For  purposes  of  this   section,   a complaint shall  include  a
     7  complaint, third party complaint, an answer containing a counterclaim or
     8  a cross claim.
     9    §  3. Article 16 of the civil practice law and rules is REPEALED and a
    10  new article 16 is added to read as follows:
    11                                  ARTICLE 16
    12                    LIMITED LIABILITY OF PERSONS JOINTLY
    13                                   LIABLE
    14          1600. Definitions.
    15          1601. Limited liability of persons jointly liable.
    16          1602. Application.
    17          1603. Burden of proof.
    18    § 1600. Definitions. As used in this article, the term "damages" shall
    19  include, but in no manner be limited to, all economic  and  non-economic
    20  loss  awarded in an action as pecuniary compensation or satisfaction for
    21  an injury caused or loss sustained as a result of a breach of a contrac-
    22  tual obligation, a tortuous act of commission or omission or  any  other
    23  such incident.
    24    § 1601. Limited liability of persons jointly liable. 1.  Notwithstand-
    25  ing  any other provision of law, when a verdict or decision in an action
    26  or claim for economic or non-economic damages is determined in favor  of
    27  a  claimant in an action involving two or more wrongdoers jointly liable
    28  or in a claim against the state, the liability of each such wrongdoer to
    29  the claimant for loss shall not exceed the wrongdoer's  equitable  share
    30  determined  in  accordance  with the relative culpability of each person
    31  causing or contributing to the total  liability,  whether  or  not  such
    32  person was or could have been a party to the action.
    33    2.  Nothing herein shall be construed to affect or impair any right of
    34  a wrongdoer pursuant to the provisions of section 15-108 of the  general
    35  obligations law.
    36    § 1602. Application. The limitations set forth in this article shall:
    37    1.  Apply  to  any claim for contribution or indemnification but shall
    38  not include: (a) a claim for indemnification if, prior to  the  accident
    39  or  occurrence  on which the claim is based, the claimant and the wrong-
    40  doer had entered into a written contract  in  which  the  wrongdoer  had
    41  expressly  agreed  to  indemnify  the    claimant  for  the type of loss
    42  suffered; or
    43    (b) a claim for indemnification by a public employee, including indem-
    44  nification pursuant to section fifty-k of the general municipal  law  or
    45  section seventeen or eighteen of the public officers law.
    46    2. Not be construed to impair, alter, limit, modify, enlarge, abrogate
    47  or  restrict  (i)  the  limitations set forth in section twenty-a of the
    48  court of claims act; (ii)  any  immunity  or  right  of  indemnification
    49  available to or conferred upon any defendant for any negligent or wrong-
    50  ful  act  or  omission;  (iii) any right on the part of any defendant to
    51  plead and prove an affirmative defense as to culpable conduct  attribut-
    52  able  to  a  claimant  or decedent which is claimed by such defendant in
    53  diminution of damages in any action; and (iv) any liability  arising  by
    54  reason  of a non-delegable duty or by reason of the doctrine of respond-
    55  ent superior.

        S. 2944                             4
 
     1    3. Not be applied to claims under the workers' compensation law or  to
     2  a  claim  against  a defendant where the claimant has sustained a "grave
     3  injury" as defined in section eleven of the workers' compensation law to
     4  the extent of the equitable share of any person against whom the  claim-
     5  ant  is  barred from asserting a cause of action because of the applica-
     6  bility of the workers' compensation law; provided, however, that nothing
     7  in this section shall be construed  to  create,  impair,  alter,  limit,
     8  modify, enlarge, abrogate or restrict any theory of liability upon which
     9  any person may be held liable.
    10    4.  In  conjunction  with  the other provisions of this article not be
    11  construed to create or enlarge actions for  contributions  or  indemnity
    12  barred  because  of  the application of the workers' compensation law of
    13  this state, any other state or the federal government, or section 18-201
    14  of the general obligations law.
    15    § 1603. Burden of proof. In any action or claim for damages,  a  party
    16  asserting that the limitations of liability set forth in this article do
    17  not  apply  shall  allege,  and  must  prove  by  a preponderance of the
    18  evidence, that one or more of the exemptions set forth in either  subdi-
    19  vision  one  of  section sixteen hundred one, or section sixteen hundred
    20  two of this article, shall apply.
    21    § 4. Section 214-d of the civil practice law and rules is REPEALED and
    22  a new section 214-d is added to read as follows:
    23    § 214-d.  Limitations  on  certain actions against professional  engi-
    24  neers,  architects, landscape architects, land surveyors or construction
    25  contractors. 1. Except as otherwise provided in subdivision two of  this
    26  section,  no  action  to recover damages for injury to the person or for
    27  wrongful death or for damage to property nor any action for contribution
    28  or indemnity for damages sustained on account of such injury or wrongful
    29  death or damage to property arising from any defect in the structure  or
    30  improvement resulting from  the  design,  planning,  or  supervision  of
    31  construction of an improvement to real property shall be brought against
    32  a  professional  engineer, architect, landscape architect, land surveyor
    33  or construction contractor more than ten years after the  completion  of
    34  such improvement.
    35    2.  If, by reason of such defect, an injury to the person or an injury
    36  causing  wrongful death or an injury to property occurs during the tenth
    37  year after completion, an action to recover damages for such  injury  or
    38  wrongful  death  or  damage to property may be brought within  one  year
    39  after the date on which such injury occurred, but in no event  may  such
    40  action be brought more than eleven years after  the  completion  of  the
    41  improvement.
    42    3.    Except  as  provided  in subdivision two of this section, in the
    43  event the provisions of subdivision  one  of  this  section  shall  have
    44  reduced  the  period during which an action against a professional engi-
    45  neer, architect, landscape  architect,  land  surveyor  or  construction
    46  contractor  could  have  otherwise  been  brought  pursuant to any other
    47  provision of law, rule or regulation, the claimant shall, in that event,
    48  be entitled to institute any such action for a period of one year  after
    49  the effective date of this section.
    50    4.  The  limitations  prescribed  by  this  section shall not apply to
    51  actions brought by one in contractual or professional privity  with  the
    52  engineer,  architect, landscape architect, land surveyor or construction
    53  contractor and shall not be asserted by way of defense by any person  in
    54  actual  possession or control as owner, tenant, or otherwise, of such an
    55  improvement at the time any defect in such improvement  constitutes  the

        S. 2944                             5
 
     1  proximate cause of the injury or death for which it is proposed to bring
     2  an action.
     3    5.  For  purposes of this section an improvement shall be deemed to be
     4  "completed" (a) when, after the improvement has been started,  a  perma-
     5  nent certificate of occupancy is issued by the municipality in which the
     6  improvement  is  situated,  if  such  is  required or is actually issued
     7  pursuant to law or regulation; or (b) if a public improvement, upon  the
     8  acceptance of the improvement by the owner, if a certificate of occupan-
     9  cy is not required and has not been issued; or (c) on the earlier of the
    10  following  dates,  if  the  provisions of paragraphs (a) and (b) of this
    11  subdivision do not apply (i) four months prior to the last day on  which
    12  mechanic's  lien,  resulting  from work performed or materials furnished
    13  with respect to such improvement, can be filed; or (ii) upon the owner's
    14  final payment for services rendered or materials supplied  with  respect
    15  to such improvement.
    16    6. An architect, engineer, landscape architect, or land surveyor shall
    17  mean  a  person  licensed or registered as an architect, engineer, land-
    18  scape architect, land surveyor or construction contractor,  pursuant  to
    19  the  provisions  of the education law or any partnership, corporation or
    20  any other entity lawfully performing architectural,  engineering,  land-
    21  scape  architectural  or surveying services.
    22    § 5. Subdivisions 4 and 5 of section 214 of the civil practice law and
    23  rules,  as  separately  amended  by  chapters 485 and 682 of the laws of
    24  1986, are amended to read as follows:
    25    4. an action to recover damages for an injury to  property  except  as
    26  provided in [section] sections 214-c, 214-d and 214-f;
    27    5.  an  action  to  recover  damages  for  a personal injury except as
    28  provided in sections 214-b, 214-c, 214-d, 214-f and 215;
    29    § 6.  Subdivision (h) of rule 3211 and subdivision (i) of rule 3212 of
    30  the civil practice law and rules are REPEALED.
    31    § 7. The civil practice law and rules  is  amended  by  adding  a  new
    32  section 214-f to read as follows:
    33    §  214-f. Actions alleging injury from a product; repose. (a) Notwith-
    34  standing any law, rule or regulation to the contrary, and subject to the
    35  provisions of subdivisions (b), (c) and (d) of this section, no cause of
    36  action  arising  out  of the manufacture, sale or marketing of a product
    37  may be commenced more than ten years after any such product is delivered
    38  to the first purchaser or lessee.
    39    (b) The provisions of subdivision (a) of this section shall not bar  a
    40  product liability action against a subject defendant who shall have made
    41  an  express warranty, in writing, as to the safety or life expectancy of
    42  the specific product involved, which period of warranty is  longer  than
    43  ten years, except that such subdivision shall apply at the expiration of
    44  that warranty.
    45    (c) If a product liability cause of action accrues during the ten year
    46  period  described  in subdivision (a) of this section but at a time less
    47  than two years prior to the expiration of such period, such  action  may
    48  be  brought  within  two years after accrual thereof; provided, however,
    49  that in no event may such action be brought more than twelve years after
    50  the product was delivered to the first purchaser or lessee.
    51    (d) Except as provided in subdivisions (b) and (c) of this section, in
    52  the event the provisions of subdivision (a) of this section  shall  have
    53  reduced  the  period  during which a product liability action could have
    54  otherwise been brought pursuant to any other provision of law,  rule  or
    55  regulation,  the claimant shall, in that event, be entitled to institute

        S. 2944                             6
 
     1  any such action for a period of one year after  the  effective  date  of
     2  this section.
     3    (e)  For purposes of this section, "cause of action arising out of the
     4  manufacture, sale or marketing of a product" means any action, including
     5  but not limited to a  contribution,  indemnity  or  restitution  action,
     6  brought  for or on account of personal injury, wrongful death, injury to
     7  property or expenditure of funds that is alleged to have  resulted  from
     8  the  manufacture, sale, use, construction, design, formulation, develop-
     9  ment of standards, preparation, processing, assembly, rebuilding,  test-
    10  ing,  listing, certifying, marketing, advertising, packaging or labeling
    11  of any product, or any warning or instruction  or  lack  of  warning  or
    12  instruction  associated  with  that product, regardless of the theory of
    13  liability employed.
    14    (f) Notwithstanding the foregoing or any other provision of law,  rule
    15  or  regulation, no claim may be brought against a defendant in any civil
    16  action if either (i)  with  respect  to  all  civil  actions,  including
    17  actions  subject  herein,  the claim is based in whole or in part on any
    18  act or omission of the defendant which occurred  more  than  twenty-five
    19  years  before  the  claim  was brought; or (ii) with respect to any such
    20  actions subject herein, the claim is brought more than twenty-five years
    21  after the date of delivery of the product  to  the  first  purchaser  or
    22  lessee,  which  product is alleged to have caused the plaintiff's injury
    23  or damage.
    24    § 8. Paragraph 1 of subdivision (d) of section 3101 of the civil prac-
    25  tice law and rules, as amended by chapter  184  of  the  laws  of  1988,
    26  subparagraph  (ii)  as  amended  by  chapter 165 of the laws of 1991, is
    27  amended to read as follows:
    28    1. Experts. (i) Upon request, each party shall  identify  each  person
    29  whom  the  party expects to call as an expert witness at trial and shall
    30  disclose in reasonable detail the subject matter on which each expert is
    31  expected to testify, the substance of the facts and  opinions  on  which
    32  each  expert  is  expected to testify, the qualifications of each expert
    33  witness and a summary of the grounds for each expert's opinion. However,
    34  where a party for good cause shown retains  an  expert  an  insufficient
    35  period  of  time  before  the  commencement of trial to give appropriate
    36  notice thereof, the party shall not thereupon be precluded  from  intro-
    37  ducing  the expert's testimony at the trial solely on grounds of noncom-
    38  pliance with this paragraph. In that instance, upon motion of any party,
    39  made before or at trial, or on its own initiative, the  court  may  make
    40  whatever  order may be just. [In an action for medical, dental or podia-
    41  tric malpractice, a party, in responding to  a  request,  may  omit  the
    42  names  of  medical, dental or podiatric experts but shall be required to
    43  disclose  all  other  information  concerning  such  experts   otherwise
    44  required by this paragraph.]
    45    (ii)  In  an  action for medical, dental or podiatric malpractice, any
    46  party may, by written offer made to and served upon  all  other  parties
    47  and  filed  with the court, [offer to disclose the name of, and to] make
    48  available for examination upon oral deposition,  any  person  the  party
    49  making  the  offer expects to call as an expert witness at trial. Within
    50  twenty days of service of the offer, a party shall accept or reject  the
    51  offer  by  serving  a  written  reply upon all parties and filing a copy
    52  thereof with the court.  Failure to serve a reply within twenty days  of
    53  service  of  the  offer shall be deemed a rejection of the offer. If all
    54  parties accept the offer, each party shall be required to produce his or
    55  her expert witness for examination upon oral deposition upon receipt  of
    56  a  notice  to  take  oral  deposition in accordance with rule thirty-one

        S. 2944                             7
 
     1  hundred seven of this [chapter] article.  If any party, having  made  or
     2  accepted the offer, fails to make that party's expert available for oral
     3  deposition, that party shall be precluded from offering expert testimony
     4  at the trial of the action.
     5    (iii)  Further  disclosure  concerning  the  expected testimony of any
     6  expert may be obtained only by court order upon  a  showing  of  special
     7  circumstances  and  subject  to  restrictions as to scope and provisions
     8  concerning fees and expenses as the court may deem appropriate. However,
     9  a party, without court order, may take the testimony of a person author-
    10  ized to practice medicine, dentistry or  podiatry  who  is  the  party's
    11  treating or retained expert, as described in paragraph three of subdivi-
    12  sion  (a) of this section, in which event any other party shall be enti-
    13  tled to the full disclosure authorized by this article with  respect  to
    14  that expert without court order.
    15    §  9.  Subdivisions  (b) and (e) of section 5031 of the civil practice
    16  law and rules, as amended by chapter  485  of  the  laws  of  1986,  are
    17  amended to read as follows:
    18    (b)  The  court shall enter judgment in lump sum for past damages, for
    19  future damages not in excess of [two hundred]  fifty  thousand  dollars,
    20  and  for  any  damages,  fees  or costs payable in lump sum or otherwise
    21  under subdivisions (c) and (d) of this section. For the purposes of this
    22  section, any lump sum payment of a portion of future  damages  shall  be
    23  deemed  to include the elements of future damages in the same proportion
    24  as such elements comprise of the  total  award  for  future  damages  as
    25  determined by the trier of fact.
    26    (e)  With  respect  to  awards  of  future  damages  in excess of [two
    27  hundred] fifty thousand dollars in an  action  to  recover  damages  for
    28  dental, medical or podiatric malpractice, the court shall enter judgment
    29  as follows:
    30    After  making  any adjustments prescribed by subdivisions (b), (c) and
    31  (d) of this section, the court shall enter a judgment for the amount  of
    32  the  present  value  of  an  annuity  contract that will provide for the
    33  payment of the remaining amounts of future damages in periodic  install-
    34  ments. The present value of such contract shall be determined in accord-
    35  ance  with  generally  accepted  actuarial  practices  by  applying  the
    36  discount rate in effect at the time of the award to the full  amount  of
    37  the  remaining  future  damages, as calculated pursuant to this subdivi-
    38  sion. The period of time over which such periodic payments shall be made
    39  and the period of time used to calculate the present value of the annui-
    40  ty contract shall be the period of years determined by the trier of fact
    41  in arriving at the itemized verdict; provided, however, that the  period
    42  of  time  over which such periodic payments shall be made and the period
    43  of time used to calculate the present value for damages attributable  to
    44  pain  and  suffering shall be ten years or the period of time determined
    45  by the trier of fact, whichever is less. The court, as part of its judg-
    46  ment, shall direct that the  defendants  and  their  insurance  carriers
    47  shall  be required to offer and to guarantee the purchase and payment of
    48  such an annuity contract.  Such annuity contract shall provide  for  the
    49  payment of the annual payments of such remaining future damages over the
    50  period  of  time  determined  pursuant  to  this subdivision. The annual
    51  payment for the first year shall be calculated by dividing the remaining
    52  amount of future damages by the number of years over which such payments
    53  shall be made and the payment due  in  each  succeeding  year  shall  be
    54  computed  by  adding  four  percent  to the previous year's payment. The
    55  addition of four percent to each of the previous year's payment shall be
    56  the exclusive measure of interest, inflation, foregone investment oppor-

        S. 2944                             8
 
     1  tunity and any other measure of damage. Where payment of  a  portion  of
     2  the  future damages terminates in accordance with the provisions of this
     3  article, the four percent added payment shall be based  only  upon  that
     4  portion of the damages that remains subject to continued payment. Unless
     5  otherwise  agreed,  the  annual sum so arrived at shall be paid in equal
     6  monthly installments and in advance.
     7    § 10. Subdivisions (b) and (e) of section 5041 of the  civil  practice
     8  law  and rules, as added by chapter 682 of the laws of 1986, are amended
     9  to read as follows:
    10    (b) The court shall enter judgment in lump sum for past  damages,  for
    11  future  damages  not  in excess of [two hundred] fifty thousand dollars,
    12  and for any damages, fees or costs payable  in  lump  sum  or  otherwise
    13  under subdivisions (c) and (d) of this section. For the purposes of this
    14  section,  any  lump  sum payment of a portion of future damages shall be
    15  deemed to include the elements of future damages in the same  proportion
    16  as  such  elements  comprise  of  the  total award for future damages as
    17  determined by the trier of fact.
    18    (e) With respect to  awards  of  future  damages  in  excess  of  [two
    19  hundred]  fifty  thousand  dollars  in  an action to recover damages for
    20  personal injury, injury to property or wrongful death, the  court  shall
    21  enter judgment as follows:
    22    After  making  any  adjustment prescribed by subdivisions (b), (c) and
    23  (d) of this section, the court shall enter a judgment for the amount  of
    24  the  present  value  of  an  annuity  contract that will provide for the
    25  payment of the remaining amounts of future damages in periodic  install-
    26  ments. The present value of such contract shall be determined in accord-
    27  ance  with  generally  accepted  actuarial  practices  by  applying  the
    28  discount rate in effect at the time of the award to the full  amount  of
    29  the  remaining  future  damages, as calculated pursuant to this subdivi-
    30  sion. The period of time over which such periodic payments shall be made
    31  and the period of time used to calculate the present value of the annui-
    32  ty contract shall be the period of years determined by the trier of fact
    33  in arriving at the itemized verdict; provided, however, that the  period
    34  of  time  over which such periodic payments shall be made and the period
    35  of time used to calculate the present value for damages attributable  to
    36  pain  and  suffering shall be ten years or the period of time determined
    37  by the trier of fact, whichever is less. The court, as part of its judg-
    38  ment, shall direct that the  defendants  and  their  insurance  carriers
    39  shall  be required to offer and to guarantee the purchase and payment of
    40  such an annuity contract.  Such annuity contract shall provide  for  the
    41  payment of the annual payments of such remaining future damages over the
    42  period  of  time  determined  pursuant  to  this subdivision. The annual
    43  payment for the first year shall be calculated by dividing the remaining
    44  amount of future damages by the number of years over which such payments
    45  shall be made and the payment due  in  each  succeeding  year  shall  be
    46  computed  by  adding  four  percent  to the previous year's payment. The
    47  addition of four percent to each of the previous year's payment shall be
    48  the exclusive measure of interest, inflation, foregone investment oppor-
    49  tunity and any other measure of damage. Where payment of  a  portion  of
    50  the  future damages terminates in accordance with the provisions of this
    51  article, the four percent added payment shall be based  only  upon  that
    52  portion  of  the  damages  that  remains  subject  to continued payment.
    53  Unless otherwise agreed, the annual sum so arrived at shall be  paid  in
    54  equal monthly installments and in advance.
    55    §  11.  The  civil  practice  law and rules is amended by adding a new
    56  article 50-C to read as follows:

        S. 2944                             9
 
     1                                ARTICLE 50-C
     2                      LIMITATION ON NONECONOMIC DAMAGES
     3          5051. Definitions.
     4          5052. Damage awards.
     5    § 5051. Definitions. As used in this article:
     6    1.  "Noneconomic damages" means subjective, nonpecuniary damages aris-
     7  ing from pain, suffering, inconvenience, physical impairment or  disfig-
     8  urement, mental anguish, emotional distress, loss of society and compan-
     9  ionship, loss of consortium, injury to reputation, humiliation and other
    10  nonpecuniary damages.
    11    2.  "Actual  economic  damages" means objectively verifiable pecuniary
    12  damages arising from medical expenses and medical care, loss of earnings
    13  and earning capacity, burial costs, loss of use of  property,  costs  of
    14  repair  or replacement of property, costs of obtaining substitute domes-
    15  tic services, loss of employment, loss of business or employment  oppor-
    16  tunities,  rehabilitation  services,  custodial care and other pecuniary
    17  damages.
    18    3. "Personal injury action" means any  action,  including  but  in  no
    19  manner  limited  to  medical,  dental and podiatric malpractice actions,
    20  whether in tort, contract, or otherwise, in which  the  plaintiff  seeks
    21  damages for injury to the person or wrongful death.
    22    4. "Compensation" means monetary awards.
    23    §  5052.  Damage awards. In any personal injury action, the prevailing
    24  plaintiff may be awarded:
    25    1. Compensation for actual economic damages suffered  by  the  injured
    26  plaintiff; and
    27    2. Compensation for noneconomic damages suffered by the injured plain-
    28  tiff, not to exceed two hundred fifty thousand dollars.
    29    §  12.  Section 240 of the labor law, the section heading and subdivi-
    30  sion 2 as amended by chapter 683 of the laws of 1947 and  subdivision  1
    31  as  amended  by  chapter  241 of the laws of 1981, is amended to read as
    32  follows:
    33    § 240. Scaffolding and other devices for use of  employees.  1.    All
    34  contractors  and  owners and their agents, except owners of one and two-
    35  family dwellings who contract for but do not direct or control the work,
    36  in the erection, demolition, repairing, altering, painting, cleaning  or
    37  pointing  of a building or structure shall furnish or erect, or cause to
    38  be furnished or erected devices or equipment for the performance of such
    39  labor, such as scaffolding, hoists,  stays,  ladders,  slings,  hangers,
    40  blocks,  pulleys,  braces,  irons,  and ropes, [and other devices which]
    41  where such devices or equipment are necessary  to  give  reasonable  and
    42  adequate  protection  and  safety  to  a  person so employed. Where such
    43  devices or equipment are furnished or erected, the devices or  equipment
    44  shall be so constructed, placed and operated as to [give proper] provide
    45  reasonable and adequate protection and safety to a person so employed.
    46    No  liability  pursuant to this subdivision for the failure to provide
    47  protection to a person so employed  shall  be  imposed  on  professional
    48  engineers  as  provided  for  in  article  one hundred forty-five of the
    49  education law, architects as provided for in article one hundred  forty-
    50  seven of such law or landscape architects as provided for in article one
    51  hundred  forty-eight  of  such law who do not direct or control the work
    52  for activities other than planning and design.  This exception shall not
    53  diminish or extinguish any liability of professional engineers or archi-
    54  tects or landscape architects arising under the common law or any  other
    55  provision of law.

        S. 2944                            10
 
     1    2.  [Scaffolding  or  staging more than twenty feet from the ground or
     2  floor, swung or suspended from  an  overhead  support  or  erected  with
     3  stationary  supports, except scaffolding wholly within the interior of a
     4  building and covering the entire floor space of any room therein,  shall
     5  have  a  safety  rail  of  suitable  material properly attached, bolted,
     6  braced or otherwise secured, rising at least  thirty-four  inches  above
     7  the  floor or main portions of such scaffolding or staging and extending
     8  along the entire length of the outside and the ends thereof,  with  only
     9  such  openings  as  may be necessary for the delivery of materials. Such
    10  scaffolding or staging shall be so fastened as to prevent it from  sway-
    11  ing from the building or structure.
    12    3.  All  scaffolding shall be so constructed as to bear four times the
    13  maximum weight required to be dependent therefrom or placed thereon when
    14  in use] Compliance with applicable provisions  of  the  federal  Occupa-
    15  tional  Safety  and  Health Act and Part twenty-three of title twelve of
    16  the New York codes, rules and regulations, as amended,  shall  be  prima
    17  facie proof of compliance with subdivision one of this section.
    18    3. Nothing in this section shall be deemed to relieve a person injured
    19  in  the erection, demolition, repairing, altering, painting, cleaning or
    20  pointing of a building or structure from the consequences of his  culpa-
    21  ble  conduct  in  accordance with section fourteen hundred eleven of the
    22  civil practice law and rules.
    23    § 13. Section 241 of the labor law, as added by chapter  1108  of  the
    24  laws  of  1969,  the  opening paragraph as amended by chapter 670 of the
    25  laws of 1980, subdivisions 6, 7 and 8 as amended and subdivision  10  as
    26  added  by chapter 520 of the laws of 1989, and subdivision 9 as added by
    27  chapter 241 of the laws of 1981, is amended to read as follows:
    28    § 241. Construction, excavation and demolition work.  1. All  contrac-
    29  tors  and  owners  and their agents, except owners of one and two-family
    30  dwellings who contract for but do not direct or control the  work,  when
    31  constructing  or  demolishing  buildings  or  doing  any  excavating  in
    32  connection therewith, shall [comply with the following requirements:
    33    1. If the floors are to be arched between the beams thereof, or if the
    34  floors or filling in between the floors are of fireproof  material,  the
    35  flooring or filling in shall be completed as the building progresses.
    36    2.  If the floors are not to be filled in between the beams with brick
    37  or other fireproof material, the underflooring shall  be  laid  on  each
    38  story as the building progresses.
    39    3.  If  double  floors are not to be used, the floor two stories imme-
    40  diately below the story where the work is being performed shall be  kept
    41  planked over.
    42    4. If the floor beams are of iron or steel, the entire tier of iron or
    43  steel  beams on which the structural iron or steel work is being erected
    44  shall be thoroughly planked over, except spaces reasonably required  for
    45  proper  construction  of the iron or steel work, for raising or lowering
    46  of materials or for stairways and  elevator  shafts  designated  by  the
    47  plans and specifications.
    48    5. If elevators, elevating machines or hod-hoisting apparatus are used
    49  in the course of construction, for the purpose of lifting materials, the
    50  shafts  or  openings  in  each  floor and at each landing level shall be
    51  inclosed or fenced in on all sides by  a  barrier  of  suitable  height,
    52  except  on  two  sides  which  may be used for taking off and putting on
    53  materials, and those sides shall be guarded by an adjustable barrier not
    54  less than three nor more than four feet from the floor and not less than
    55  two feet from the edges of such shafts or openings.

        S. 2944                            11

     1    6. All areas in which construction, excavation or demolition  work  is
     2  being  performed  shall  be  so  constructed, shored, equipped, guarded,
     3  arranged,  operated  and  conducted]  construct,  shore,  equip,  guard,
     4  arrange,  operate  and conduct such work so as to provide reasonable and
     5  adequate  protection  and  safety  to  the  persons  employed therein or
     6  lawfully frequenting such places. The commissioner  may  make  rules  to
     7  carry into effect the provisions of this subdivision, and the owners and
     8  contractors  and  their  agents  for such work, except owners of one and
     9  two-family dwellings who contract for but do not direct or  control  the
    10  work, shall comply therewith.
    11    [7.  The  commissioner may make rules to provide for the protection of
    12  workers in connection with the excavation work for the  construction  of
    13  buildings,  the work of constructing or demolishing buildings and struc-
    14  tures, and the guarding of dangerous machinery used in connection there-
    15  with, and the owners and contractors and their  agents  for  such  work,
    16  except  owners  of  one and two-family dwellings who contract for but do
    17  not direct or control the work, shall comply therewith.
    18    8.] 2. Compliance with applicable provisions of  the  federal  Occupa-
    19  tional  Safety  and  Health Act and Part twenty-three of title twelve of
    20  the New York codes, rules and regulations, as amended,  shall  be  prima
    21  facie proof of compliance with subdivision one of this section.
    22    3. Nothing in this section shall be deemed to relieve a person injured
    23  in the construction, demolition or excavation of a building or structure
    24  from the consequences of his culpable conduct in accordance with section
    25  fourteen hundred eleven of the civil practice law and rules.
    26    4.  The  commissioner,  as  deemed  necessary,  shall promulgate rules
    27  designed for the purpose of providing for the  reasonable  and  adequate
    28  protection  and  safety  of  persons  passing by all areas, buildings or
    29  structures in which construction, excavation or demolition work is being
    30  performed, and the owners and contractors  and  their  agents  for  such
    31  work, except owners of one and two-family dwellings who contract for but
    32  do  not  direct  or  control  the  work,  shall  comply  therewith.  The
    33  provisions of this subdivision shall not apply to cities having a  popu-
    34  lation of one million or more.
    35    [9.] 5. No liability for the non-compliance with any of the provisions
    36  of  this  section shall be imposed on professional engineers as provided
    37  for in article one hundred forty-five of the education  law,  architects
    38  as  provided for in article one hundred forty-seven of such law or land-
    39  scape architects as provided for in article one hundred  forty-eight  of
    40  such law who do not direct or control the work for activities other than
    41  planning and design. This exception shall not diminish or extinguish any
    42  liability  of professional engineers, architects or landscape architects
    43  arising under the common law or any other provision of law.
    44    [10.] 6. Prior to advertising for bids or contracting for or  commenc-
    45  ing  work on any demolition work on buildings covered under this section
    46  except agricultural buildings as defined in regulations  promulgated  by
    47  the  commissioner  and  except  buildings  the construction of which was
    48  begun on or after January  first,  nineteen  hundred  seventy-four,  all
    49  owners  and  their agents, except owners of one and two-family dwellings
    50  who contract for but do not direct or control the work, shall conduct or
    51  cause to be conducted a survey to determine whether or not the  building
    52  to  be  demolished  contains asbestos or asbestos material as defined in
    53  section nine  hundred  one  of  this  chapter.  Such  surveys  shall  be
    54  conducted  in  conformance with rules and regulations promulgated by the
    55  commissioner.  Information derived from such survey shall be immediately
    56  transmitted to the commissioner and to  the  local  governmental  entity

        S. 2944                            12
 
     1  charged with issuing a permit for such demolition under applicable state
     2  or  local  laws  or,  if no such permit is required, to the town or city
     3  clerk. If such survey finds that a building to  be  demolished  contains
     4  asbestos  or asbestos material as defined by section nine hundred one of
     5  [the] this chapter, no bids shall be advertised  nor  contracts  awarded
     6  nor  demolition work commenced by any owner or agent prior to completion
     7  of an asbestos remediation contract performed  by  a  licensed  asbestos
     8  contractor as defined by section nine hundred one of this chapter.
     9    § 14. Section 241-a of the labor law is REPEALED.
    10    §  15.  Section  1411 of the civil practice law and rules, as added by
    11  chapter 69 of the laws of 1975, is amended to read as follows:
    12    § 1411. Damages recoverable when contributory negligence or assumption
    13  of risk is established. In any action to recover  damages  for  personal
    14  injury,  injury  to  property,  or  wrongful death, the culpable conduct
    15  attributable to the claimant or to the decedent, including  contributory
    16  negligence or assumption of risk, shall not bar recovery, but the amount
    17  of  damages  otherwise recoverable shall be diminished in the proportion
    18  which the culpable conduct attributable  to  the  claimant  or  decedent
    19  bears to the culpable conduct which caused the damages; provided, howev-
    20  er,  that  the  claimant or the decedent's representative shall be abso-
    21  lutely barred from the recovery of any damages where the trier  of  fact
    22  finds  that the contributory fault on the part of said claimant or dece-
    23  dent constitutes more than fifty percent of the proximate cause  of  the
    24  harm for which recovery is sought.
    25    §  16. The labor law is amended by adding a new section 742 to read as
    26  follows:
    27    § 742. Disclosure of  employment  related  information;  presumptions;
    28  causes  of  action;  definitions. 1. Any employer who, upon request by a
    29  prospective employer or a current or former employee, provides  accurate
    30  information  about  a  current  or  former employee's job performance or
    31  reasons for separation shall be immune from civil  liability  and  other
    32  consequences  of such disclosure provided such employer is not acting in
    33  bad faith. An employer shall be considered to be  acting  in  bad  faith
    34  only  if  it  can  be  shown by a preponderance of the evidence that the
    35  information disclosed was knowingly false and deliberately misleading.
    36    2. Any prospective  employer  who  reasonably  relies  on  information
    37  pertaining  to  an employee's job performance or reasons for separation,
    38  disclosed by a former employer, shall be  immune  from  civil  liability
    39  including liability for negligent hiring, negligent retention, and other
    40  causes of action related to the hiring of such employee, based upon such
    41  reasonable  reliance,  unless  further  investigation, including but not
    42  limited to a criminal background check, is required by law.
    43    3. As used in this section, the following words and phrases shall have
    44  the following meanings unless the context clearly requires otherwise:
    45    (a) "Employer" means any person, firm, or corporation,  including  the
    46  state  and its political subdivisions, and any agent thereof with one or
    47  more employees, or individuals performing services under any contract of
    48  hire or service, expressed or implied, oral or written.
    49    (b) "Employee" means any person, paid or unpaid, in the service of  an
    50  employer.
    51    (c)  "Prospective  employer" means any "employer", as defined in para-
    52  graph (a) of this subdivision, to which a prospective employee has  made
    53  application,  either  oral  or  written,  or forwarded a resume or other
    54  correspondence expressing an interest in employment.

        S. 2944                            13
 
     1    (d) "Prospective employee" means any person who has made  an  applica-
     2  tion,  either oral or written, or has sent a resume or other correspond-
     3  ence indicating an interest in employment.
     4    (e)  "Job  performance"  includes,  but is not limited to, attendance,
     5  attitude, awards, demotions,  duties,  effort,  evaluations,  knowledge,
     6  skills, promotions, and disciplinary actions.
     7    § 17. Section 720-a of the not-for-profit corporation law, as added by
     8  chapter 220 of the laws of 1986, is amended to read as follows:
     9    §  720-a.  Liability of [directors, officers and trustees] volunteers.
    10  (a) Definitions. For purposes of this section the terms: (1) "volunteer"
    11  means an individual performing services for a not-for-profit corporation
    12  or a governmental entity who does not receive compensation, or any other
    13  thing of value in lieu of compensation, for such  services  (other  than
    14  reimbursement  for expenses actually incurred or honoraria not to exceed
    15  three hundred dollars per year for government service),  and  such  term
    16  includes  a  volunteer serving as a director, officer, trustee or direct
    17  service volunteer;
    18    (2) "not-for-profit corporation" means any  organization  exempt  from
    19  taxation under section 501(c) of the Internal Revenue Code; and
    20    (3)  "damage  or  injury" includes physical, nonphysical, economic and
    21  noneconomic damage.
    22    (b) Immunity from liability. Except  as  provided  in  sections  seven
    23  hundred  nineteen  and  seven hundred twenty of this chapter, and except
    24  any action or proceeding brought by the attorney general or, in the case
    25  of a charitable trust, an action or proceeding against a trustee brought
    26  by a beneficiary of such trust, no [person] volunteer  serving  [without
    27  compensation  as  a  director,  officer  or trustee of] a not-for-profit
    28  corporation[, association, organization or trust  described  in  section
    29  501  (c) (3) of the United States internal revenue code] shall be liable
    30  to any person other than such corporation, association, organization  or
    31  trust based solely on his or her conduct in the execution of such office
    32  unless the conduct of such [director, officer or trustee] volunteer with
    33  respect  to  the person asserting liability constituted gross negligence
    34  or was intended to cause the resulting harm to the person asserting such
    35  liability. [For purposes of this section, such a  director,  officer  or
    36  trustee  shall not be considered compensated solely by reason of payment
    37  of his or her actual expenses incurred in attending meetings  or  other-
    38  wise in the execution of such office.]
    39    (c) Exceptions. Nothing in this section shall be deemed to grant immu-
    40  nity  to  any  person  causing  damage by his willful, wanton or grossly
    41  negligent act of commission or omission; or as the result of his  negli-
    42  gent  operation  of a motor vehicle; or for liability which would other-
    43  wise arise under section 11-101 of the general obligations law.
    44    § 18. Subdivision 3 of section 388 of the vehicle and traffic law,  as
    45  amended  by  chapter  552  of  the  laws  of 1962, is amended to read as
    46  follows:
    47    3.  As used in this section, "owner" shall be as  defined  in  section
    48  one  hundred twenty-eight of this chapter [and their] except in the case
    49  of a leased vehicle as defined below, in which case "owner" shall be  as
    50  defined  below.  Owner's liability under this section shall be joint and
    51  several. If a vehicle be sold under a contract of sale which reserves  a
    52  security  interest in the vehicle in favor of the vendor, such vendor or
    53  his assignee shall not, after delivery of such  vehicle,  be  deemed  an
    54  owner  within  the  provisions  of  this section, but the vendee, or his
    55  assignee, receiving possession  thereof,  shall  be  deemed  such  owner
    56  notwithstanding  the  terms  of  such  contract, until the vendor or his

        S. 2944                            14
 
     1  assignee shall retake possession of such vehicle.  A  secured  party  in
     2  whose  favor  there  is  a  security  interest in any vehicle out of his
     3  possession, shall not be deemed an owner within the provisions  of  this
     4  section.    If  the  vehicle is a leased vehicle, the term "owner" shall
     5  mean the person to whom the vehicle has been leased, not the  person  to
     6  whom  the  certificate  of  title  for  the  vehicle  has been issued or
     7  assigned or to whom the  manufacturer's  or  importer's  certificate  of
     8  origin  for  the vehicle has been delivered or assigned. For purposes of
     9  this section, "leased" means the transfer of the possession or the right
    10  to possession of a vehicle to a lessee for a valuable consideration  for
    11  a  continuous  period  of twelve months or more, pursuant to one or more
    12  written agreements.
    13    § 19. Legislative findings. The legislature hereby finds and  declares
    14  that  allowing convicted felons or persons acting under the influence of
    15  alcohol or illegal drugs, in certain cases, to recover civil damages for
    16  injuries suffered during the commission of their crimes is an outrage to
    17  the people of the state of New York. It is in the public policy  to  bar
    18  convicted  felons  from  recovering for damages against private citizens
    19  and against the government when they, by their criminal  behavior,  have
    20  set  in  motion  a chain of circumstances resulting in their own injury.
    21  Accordingly, a felony conviction or proof of certain intoxication  shall
    22  hereafter  bar  persons  from  recovery for injuries suffered during the
    23  commission of a crime or while under the influence of alcohol or illegal
    24  drugs.
    25    § 20. The civil practice law and rules is  amended  by  adding  a  new
    26  section 1411-a to read as follows:
    27    §  1411-a.  Damages recoverable; criminal conduct or intoxication with
    28  alcohol or illegal drugs as a bar to  recovery  in  certain  cases.  (a)
    29  Notwithstanding  any  other provision of law, rule or regulation, in any
    30  action to recover damages for personal injury, injury  to  property,  or
    31  wrongful  death,  culpable criminal conduct or intoxication with alcohol
    32  or illegal drugs on the part of a claimant, as provided  in  subdivision
    33  (b) of this section, shall absolutely bar recovery.
    34    (b) In any action to recover damages as itemized in subdivision (a) of
    35  this section, the showing by a preponderance of the evidence that intox-
    36  ication  with alcohol or illegal drugs on the part of the claimant was a
    37  proximate cause for the specific damages sustained, or culpable criminal
    38  conduct attributable to the claimant or to the  decedent,  arising  from
    39  the  same transaction for which damages are sought and so established by
    40  a criminal conviction, shall constitute an absolute bar to recovery.
    41    § 21. The civil practice law and rules is  amended  by  adding  a  new
    42  article 14-B to read as follows:
    43                                ARTICLE 14-B
    44                         PRODUCT LIABILITY ACTIONS;
    45                              SPECIFIC DEFENSES
    46          1420. Postmanufacture changes.
    47          1421. Sealed containers.
    48          1422. State of the art design.
    49    §  1420.  Postmanufacture  changes.  In  a  product  liability action,
    50  evidence of measures taken by the manufacturer or seller after an event,
    51  which if taken previously would have  made  the  event  less  likely  to
    52  occur,  is  not admissible to prove negligence or culpable conduct or to
    53  prove a defect in the product.  Evidence  of  subsequent  measures  may,
    54  however, be admissible when offered to impeach or as proof of ownership,
    55  control,  or  feasibility  of precautionary measures, if such issues are
    56  controverted.

        S. 2944                            15
 
     1    § 1421. Sealed containers. In any product liability action a party may
     2  assert as a defense in such action that he is not  the  manufacturer  of
     3  the  product  in question and that such product was acquired and sold by
     4  him in a sealed container or that the product was acquired and  sold  by
     5  him  under circumstances in which he was afforded no reasonable opportu-
     6  nity to inspect the product in such a manner which would have or  should
     7  have,  in the exercise of reasonable care, revealed the existence of the
     8  defective condition; provided, however, that the defense set forth here-
     9  in will not be available if (a)  the  manufacturer  is  not  subject  to
    10  service  of  process  under the laws of the state in which the plaintiff
    11  brings the action, or (b) the manufacturer has been judicially  declared
    12  insolvent and is unable to pay its debts as they become due in the ordi-
    13  nary  course of business, or (c) the court determines that the plaintiff
    14  would be unable to enforce a  judgment  against  the  manufacturer.  The
    15  provisions  of this section shall not apply to actions based upon breach
    16  of express warranty, negligence or fraudulent misrepresentation  of  the
    17  seller.
    18    §  1422.  State of the art design. (a) In any product liability action
    19  based upon defective design, a party shall  not  be  liable  unless  the
    20  plaintiff  proves  by  a preponderance of the evidence that, at the time
    21  the product left the control of the  party,  there  existed  a  feasible
    22  alternative  design  that would have prevented the harm without substan-
    23  tially impairing the usefulness or desirability of the product to users.
    24    (b) In any product liability action based  upon  defective  design,  a
    25  party shall not be liable unless the plaintiff proves by a preponderance
    26  of  the evidence that the product design was the immediate, physical and
    27  producing  cause  of  the  injury  or  damage  of  which  the  plaintiff
    28  complains,  and  that,  if  a feasible alternative design as provided in
    29  subdivision (a) of this section was marketed by the defendant, the  user
    30  of  the product would have responded by altering his conduct and thereby
    31  would have avoided or reduced the injury or damage of which  the  plain-
    32  tiff complains.
    33    (c)  In  any  product  liability action based upon defective design, a
    34  party shall not be liable unless the plaintiff proves by a preponderance
    35  of the evidence that, at the time the product left the  control  of  the
    36  party,  such  party  knew  or,  in light of then existing scientific and
    37  technological knowledge, reasonably should have known of the danger that
    38  caused the plaintiff's harm.
    39    (d) In any product liability action based on defective design, a prod-
    40  uct shall not be found to contain a defect or be unreasonably  dangerous
    41  for  its  intended use if the personal injury, property damage, or death
    42  for which recovery of damages is sought was caused by an inherent aspect
    43  of the product about which  adequate  specifications,  instructions,  or
    44  warnings are provided or which would be recognized as capable of causing
    45  harm  by  the  ordinary person who uses or consumes the product with the
    46  ordinary knowledge common to the class of persons for whom  the  product
    47  is intended.
    48    (e) In any product liability action based on defective design, a prod-
    49  uct  shall not be found to contain a defect or be unreasonably dangerous
    50  for its intended use if the personal injury, property damage,  or  death
    51  for  which  recovery  of  damages is sought was caused by an unavoidably
    52  unsafe product, as defined in comment K to Section 402A of the  Restate-
    53  ment  (2d)  of  Torts,  and specifications, warnings or instructions are
    54  provided to the extent required by this article.

        S. 2944                            16
 
     1    § 22. Subdivisions 2, 3 and 4 of section 9 of the court of claims act,
     2  subdivision 2 as amended by chapter 40 of the laws of 1977, are  amended
     3  to read as follows:
     4    2. To hear and determine a claim of any person, corporation or munici-
     5  pality  against  the  state,  a  county,  city,  town,  village,  school
     6  district, or a special district as such term is defined in  section  one
     7  hundred  two  of  the real property tax law for the appropriation of any
     8  real or personal property or any interest therein,  for  the  breach  of
     9  contract,  express  or  implied,  or  for  the  torts of its officers or
    10  employees while acting as such  officers  or  employees,  providing  the
    11  claimant complies with the limitations of this article. For the purposes
    12  of  this  act  only,  a  real property tax lien shall be deemed to be an
    13  interest in real property.
    14    3. To hear and determine any claim in favor of the  state,  a  county,
    15  city, town, village, school district, or a special district as such term
    16  is  defined  in  section  one  hundred  two of the real property tax law
    17  against the claimant, or against his assignor at the time of the assign-
    18  ment.
    19    4. To render judgment in favor of the claimant or the state, a county,
    20  city, town, village, school district, or a special district as such term
    21  is defined in section one hundred two of the real property tax law   for
    22  such sum as should be paid by or to the state,  a  county,  city,  town,
    23  village,  school district, or a special district as such term is defined
    24  in section one hundred two of the real property tax law.
    25    § 23. The court of claims act is amended by adding a new  section  9-a
    26  to read as follows:
    27    §  9-a.  Construction  of  "state". For purposes of this act, the term
    28  "state" shall be deemed to include the  state,  a  county,  city,  town,
    29  village,  school district, or a special district as such term is defined
    30  in section one hundred two of the real property tax law whenever such  a
    31  construction  is necessary to effectuate the provisions of this act with
    32  respect to the jurisdiction conferred by section nine  of  this  article
    33  pertaining  to  such entities; provided, however, that such construction
    34  shall not be given when it would conflict with  the  provisions  of  the
    35  general municipal law.
    36    §  24.  Subdivision 4 of section 50-e of the general municipal law, as
    37  amended by chapter 745 of the laws  of  1976,  is  amended  to  read  as
    38  follows:
    39    4. Requirements of section exclusive except as to conditions precedent
    40  to  liability  for  certain  defects or snow or ice. No other or further
    41  notice, no other or further service, filing or delivery of the notice of
    42  claim, and no notice of intention  to  commence  an  action  or  special
    43  proceeding,  shall  be required as a condition to the commencement of an
    44  action or special proceeding for the enforcement of the claim; provided,
    45  however, that nothing herein contained shall be deemed to dispense  with
    46  the  requirement  of  notice  of  the  defective,  unsafe,  dangerous or
    47  obstructed condition of any street, highway, bridge,  culvert,  sidewalk
    48  or  crosswalk,  public place, land or building, grading, opening, drain,
    49  sewer, park or playground or equipment located therein  or  any  parking
    50  field, skating rink or park property, or of the existence of snow or ice
    51  thereon, where such notice now is, or hereafter may be, required by law,
    52  as  a condition precedent to liability for damages or injuries to person
    53  or property alleged to have been caused by such condition, and the fail-
    54  ure or negligence to repair or remove the same after the receipt of such
    55  notice.

        S. 2944                            17
 
     1    § 25. Subdivision 1 of section 65-a of the town  law,  as  amended  by
     2  chapter 771 of the laws of 1963, is amended to read as follows:
     3    1. No civil action shall be maintained against any town or town super-
     4  intendent  of  highways  for  damages  or injuries to person or property
     5  sustained by reason of any highway, bridge [or], culvert, public  place,
     6  land  or building, grading, opening, drain, sewer, park or playground or
     7  equipment located therein or any parking field,  skating  rink  or  park
     8  property,   being   defective,  out  of  repair,  unsafe,  dangerous  or
     9  obstructed unless written notice of such defective, unsafe, dangerous or
    10  obstructed condition of  such  highway,  bridge  [or],  culvert,  public
    11  place,  land  or building, grading, opening, drain, sewer, park or play-
    12  ground or equipment located therein or any parking field,  skating  rink
    13  or  park  property,  was actually given to the town clerk or town super-
    14  intendent of highways, and that there was a failure or neglect within  a
    15  reasonable  time after the giving of such notice to repair or remove the
    16  defect, danger or obstruction complained of, or, in the absence of  such
    17  notice, unless such defective, unsafe, dangerous or obstructed condition
    18  existed  for  so long a period that the same should have been discovered
    19  and remedied in the exercise of reasonable care and  diligence;  but  no
    20  such  action  shall  be  maintained for damages or injuries to person or
    21  property sustained solely in consequence of the existence of snow or ice
    22  upon any highway, bridge [or], culvert, public place, land or  building,
    23  grading,  opening, drain, sewer, park or playground or equipment located
    24  therein or any parking field, skating rink or park property unless writ-
    25  ten notice thereof, specifying the particular place, was actually  given
    26  to  the  town  clerk  or town superintendent of highways and there was a
    27  failure or neglect to cause such snow or ice to be removed, or  to  make
    28  the  place  otherwise reasonably safe within a reasonable time after the
    29  receipt of such notice.
    30    § 26. Section 6-628 of the village law is amended to read as follows:
    31    § 6-628 Liability of village in certain actions. No civil action shall
    32  be maintained against the village for damages or injuries to  person  or
    33  property  sustained  in  consequence  of  any  street,  highway, bridge,
    34  culvert, sidewalk [or], crosswalk, public place, land or building, grad-
    35  ing, opening, drain, sewer, park  or  playground  or  equipment  located
    36  therein  or  any  parking  field,  skating  rink or park property, being
    37  defective, out of repair, unsafe, dangerous or obstructed or for damages
    38  injuries to person or property sustained solely in  consequence  of  the
    39  existence  of snow or ice upon any sidewalk, crosswalk, street, highway,
    40  bridge [or], culvert, public place, land or building, grading,  opening,
    41  drain,  sewer,  park  or  playground or equipment located therein or any
    42  parking field, skating rink or park property unless  written  notice  of
    43  the  defective,  unsafe,  dangerous  or  obstructed  condition or of the
    44  existence of the snow or ice, relating  to  the  particular  place,  was
    45  actually  given  to the village clerk and there was a failure or neglect
    46  within a reasonable time after the receipt of such notice to  repair  or
    47  remove  the defect, danger or obstruction complained of, or to cause the
    48  snow or ice to be removed, or the place otherwise made reasonably safe.
    49    § 27. Section 474-a of the judiciary law, as amended by chapter 485 of
    50  the laws of 1986, is amended to read as follows:
    51    § 474-a. Contingent fees  for  attorneys  in  claims  or  actions  for
    52  medical,  dental or podiatric malpractice, or in any claim or action for
    53  property damage or personal injury, including death.  1. For the purpose
    54  of this section, the term "contingent fee" shall mean any attorney's fee
    55  in any claim or action for medical, dental or podiatric malpractice,  or
    56  in any claim or action for property damage or personal injury, including

        S. 2944                            18
 
     1  death,  whether determined by judgment or settlement, which is dependent
     2  in whole or in part upon the success of the prosecution by the  attorney
     3  of  such  claim or action, or which is to consist of a percentage of any
     4  recovery,  or a sum equal to a percentage of any recovery, in such claim
     5  or action.
     6    2. Notwithstanding any inconsistent judicial rule, a contingent fee in
     7  a medical, dental or podiatric malpractice action, or in  any  claim  or
     8  action  for  property  damage or personal injury, including death, shall
     9  not exceed the amount of compensation  provided  for  in  the  following
    10  schedule:
    11    [30] 25 percent of the first $250,000 of the sum recovered;
    12    [25] 20 percent of the next $250,000 of the sum recovered;
    13    [20] 15 percent of the next $500,000 of the sum recovered;
    14    [15] 10 percent of the next $250,000 of the sum recovered;
    15    [10] 5 percent of any amount over $1,250,000 of the sum recovered.
    16    3.  Such  percentages shall be computed on the net sum recovered after
    17  deducting from the  amount  recovered  expenses  and  disbursements  for
    18  expert testimony and investigative or other services properly chargeable
    19  to the enforcement of the claim or prosecution of the action. In comput-
    20  ing  the  fee,  the  costs as taxed, including interest upon a judgment,
    21  shall be deemed part of the amount recovered. For the following or simi-
    22  lar items there  shall be no deduction in  computing  such  percentages:
    23  liens,  assignments  or  claims in favor of hospitals, for medical care,
    24  dental care, podiatric care and treatment by doctors and nurses,  or  of
    25  self-insurers or insurance carriers.
    26    4.  In  the  event that claimant's or plaintiff's attorney believes in
    27  good faith that the fee schedule set forth in subdivision  two  of  this
    28  section,  because    of  extraordinary  circumstances, will not give him
    29  adequate compensation, application for greater compensation may be  made
    30  upon affidavit with written notice and an opportunity to be heard to the
    31  claimant  or plaintiff and other persons holding liens or assignments on
    32  the recovery. Such application shall be made to the justice of the trial
    33  part to which the action had been sent for trial; or, if it had not been
    34  sent to a part for trial, then to the justice  presiding  at  the  trial
    35  term calendar part of the court in which the action had been instituted;
    36  or,  if  no action had been instituted, then to the justice presiding at
    37  the trial term calendar part of the Supreme Court for the county in  the
    38  judicial  department  in  which  the  attorney  has an office. Upon such
    39  application, the justice, in his discretion,  if  extraordinary  circum-
    40  stances are found to be present, and without regard to the claimant's or
    41  plaintiff's  consent,  may  fix  as  reasonable  compensation  for legal
    42  services rendered an amount greater than that specified in the  schedule
    43  set  forth  in  subdivision two of this section, provided, however, that
    44  such greater amount shall not exceed  the  fee  fixed  pursuant  to  the
    45  contractual  arrangement,  if any, between the claimant or plaintiff and
    46  the attorney. If the application is granted, the justice  shall  make  a
    47  written  order accordingly, briefly stating the reasons for granting the
    48  greater compensation; and a copy of such order shall be  served  on  all
    49  persons entitled to receive notice of the application.
    50    5.  Any  contingent  fee  in  a claim or action for medical, dental or
    51  podiatric malpractice, or in any claim or action for property damage  or
    52  personal  injury,  including death, brought on behalf of an infant shall
    53  continue to be subject to the provisions of section four hundred  seven-
    54  ty-four of this [chapter] article.
    55    §  28.  Section  9-103  of  the  general obligations law is amended by
    56  adding a new subdivision 1-a to read as follows:

        S. 2944                            19
 
     1    1-a. No cause of action shall  arise  against  the  owner,  tenant  or
     2  lessee  of  land  or  premises for injuries to any person, other than an
     3  employee or contractor of the owner, tenant or lessee,  who  is  on  the
     4  land  or premises for the purpose of picking and purchasing agricultural
     5  or  farm  products  at a farm or "u-pick" operation, unless the person's
     6  injuries were caused by a condition which involved an unreasonable  risk
     7  of harm and all of the following apply:
     8    a. The owner, tenant or lessee knew, had reason to know of, or reason-
     9  ably should have known of the condition or risk.
    10    b.  The  owner, tenant or lessee failed to exercise reasonable care to
    11  make the condition safe, or to warn the person of the condition or risk.
    12    § 29. Legislative  intent.  The  legislature  hereby finds that horse-
    13  back riding is both a major recreational  sport  and  a  major  industry
    14  within the state of New York. The legislature further  finds:  (1)  that
    15  horseback  riding,  like  many  other  sports,  contains  inherent risks
    16  including, but not limited to, the risks of personal injury or death  or
    17  property  damage,  which  may  be caused by the propensity of equines to
    18  behave  in ways not always controllable by the  participant;  the unpre-
    19  dictability  of  an  equine's  reaction to such things as sounds, sudden
    20  movements, and unfamiliar objects, persons, or other animals; surface or
    21  subsurface conditions; collisions with other equines or objects; and the
    22  potential of a participant to act in a negligent manner; (2) that it  is
    23  appropriate,  as  well  as  in the public interest, to establish certain
    24  duties and obligations of equine sponsors and equine professionals rela-
    25  tive to the safety of the horseback riding public; and (3)  that  it  is
    26  also necessary  and appropriate that the public become apprised of,  and
    27  understand, the risks inherent in the sport of horseback riding so  that
    28  they   may make an informed decision of whether or not to participate in
    29  horseback riding notwithstanding the risks. Therefore, the  purpose  and
    30  intent of this article is to establish guidelines for the conduct of the
    31  participants, sponsors and professionals involved in the sport of horse-
    32  back riding; to educate the public as to the inherent risks in the sport
    33  of  horseback  riding  so  as  to minimize the risk of injury to persons
    34  engaged in the sport of horseback riding;  to  promote  safety  in   the
    35  horseback  riding industry, and to preserve the financial sustainability
    36  of the equine sponsors and equine professionals engaged in the horseback
    37  riding industry.
    38    § 30.  The  general obligations law is amended by adding a new article
    39  18-B to read as follows:
    40                                ARTICLE 18-B
    41                         EQUINE ACTIVITY SAFETY CODE
    42  Section 18-301. Short title.
    43          18-302. Definitions.
    44          18-303. Liability of persons involved in equine activities.
    45          18-304. Limitation of liability.
    46          18-305. Posting and notification.
    47    §    18-301. Short title. This article may be cited and shall be known
    48  as the "equine activity safety code act".
    49    §   18-302.   Definitions. For  the  purposes  of  this  article,  the
    50  following words or phrases shall be defined as follows:
    51    1.  "Engages  in an equine activity" means riding, training, assisting
    52  in veterinary treatment of, driving,  or being  a  passenger   upon   an
    53  equine,  whether  mounted or unmounted, visiting or touring or utilizing
    54  an equine facility as part of an organized event  or  activity,  or  any
    55  person assisting a participant or show management. The term "engages  in
    56  an equine activity" does not include being  a  spectator  at  an  equine

        S. 2944                            20
 
     1  activity, except in cases where the spectator places himself in an unau-
     2  thorized area or in immediate proximity to the equine activity.
     3    2. "Equine" means a horse, pony, mule or donkey.
     4    3. "Equine activity" means:
     5    (a)  Equine  shows, fairs, competitions, performances, or parades that
     6  involve  any or all breeds of equines and any of the equine disciplines,
     7  including,  but  not limited to dressage, hunter and jumper horse shows,
     8  grand prix jumping, three-day events, combined training, rodeos, riding,
     9  driving, pulling, cutting, polo,  steeplechasing,  English  and  western
    10  performance riding, endurance trail riding, gymkhana games, and hunting.
    11    (b) Equine training or teaching activities or both.
    12    (c) The boarding of equines; including normal daily care thereof.
    13    (d)  Riding,  inspecting,  or evaluating by a purchaser or an agent an
    14  equine belonging to another, whether or not the owner has received  some
    15  monetary consideration or other thing of value for the use of the equine
    16  or is permitting a prospective purchaser of the equine to ride, inspect,
    17  or evaluate the equine.
    18    (e) Rides, trips, hunts or other equine activities of any type however
    19  informal or impromptu that are sponsored by an equine activity sponsor.
    20    (f) Placing or replacing horseshoes or hoof trimming on an equine.
    21    (g) Providing or assisting in veterinary treatment of an equine.
    22    4.  "Equine  activity sponsor" means an individual, group, club, part-
    23  nership, or corporation, whether or not the  sponsor  is  operating  for
    24  profit  or nonprofit, which sponsors, organizes, or provides the facili-
    25  ties  for, an equine activity, including but not limited to: pony clubs,
    26  4-H clubs, hunt clubs, riding clubs, school and college-sponsored class-
    27  es, programs  and activities,  therapeutic riding programs,  stable  and
    28  farm owners and operators, instructors, and promoters of equine  facili-
    29  ties, including but not limited to farms, stables, clubhouses, pony ride
    30  strings, fairs, and arenas at which the activity is held.
    31    5. "Equine professional" means a person engaged for compensation:
    32    (a) In instructing a participant or renting to a participant an equine
    33  for the purpose of riding, driving or being a passenger upon the equine;
    34    (b) In renting equipment or tack to a participant;
    35    (c) To provide daily care of horses boarded at an equine facility; or
    36    (d) To train an equine.
    37    6. "Inherent risks of equine activities" means those dangers or condi-
    38  tions which are an integral part of equine activities, including but not
    39  limited to:
    40    (a)  The  propensity  of  equines to behave in ways that may result in
    41  injury, harm, or death to persons on or around them;
    42    (b)  The  unpredictability of an equine's reaction to  such things  as
    43  sounds,  sudden  movement,  and  unfamiliar  objects, persons, or  other
    44  animals;
    45    (c) Certain hazards such as surface and subsurface conditions  includ-
    46  ing,  but not limited to, rocks, forest growth, debris, branches, trees,
    47  roots, stumps, or other natural objects;
    48    (d) Collisions with other equines or objects; and
    49    (e) The potential of a participant to act in a negligent manner   that
    50  may  contribute  to injury to the participant or others, such as failing
    51  to maintain control over the animal or not  acting  within  his  or  her
    52  ability.
    53    7.  "Participant"  means  any person, whether amateur or professional,
    54  who engages in an equine activity, whether or  not  a  fee  is  paid  to
    55  participate in the equine activity.

        S. 2944                            21
 
     1    §  18-303.   Liability   of  persons involved in equine activities. 1.
     2  Nothing in section 18-304 of this article shall  prevent   or limit  the
     3  liability  of  an  equine activity sponsor or an equine professional, if
     4  the equine activity sponsor or equine professional:
     5    (a)  (1) Provided the equipment or tack, and knew or should have known
     6  that the  equipment  or tack was faulty, and such equipment or tack  was
     7  faulty to the extent that it did cause the injury; or
     8    (2)  Provided  the  equine  and  failed to make reasonable and prudent
     9  efforts  to determine the ability of the participant to engage safely in
    10  the equine activity, and determine the ability  of  the  participant  to
    11  safely manage the particular equine based on the participant's represen-
    12  tations of his ability;
    13    (b)  Owns,  leases,  rents,  has authorized use of, or is otherwise in
    14  lawful possession and control of the land, or facilities upon which  the
    15  participant   sustained injuries because of a dangerous latent condition
    16  which was known or should have been known to the equine activity sponsor
    17  or equine professional and for which warning signs, pursuant to subdivi-
    18  sion four of section 18-302 of this article have not been  conspicuously
    19  posted;
    20    (c)  Commits  an  act  of  omission that constitutes willful or wanton
    21  disregard for the safety of the participant, and that  act  of  omission
    22  caused the injury;
    23    (d) Intentionally injures the participant.
    24    2.  This section shall not apply to the horse racing activity  author-
    25  ized pursuant  to article two, three or four of the racing,  pari-mutuel
    26  wagering and breeding law.
    27    §   18-304. Limitation of liability.  1. Except as provided in  subdi-
    28  vision two of section 18-303 of this article, an equine  activity  spon-
    29  sor,  an  equine  professional, or any   other   person,   which   shall
    30  include corporation  or partnership, shall not be liable for  an  injury
    31  to  or  the death of a participant resulting  from  the  inherent  risks
    32  of  equine activities  and, except as provided  in  subdivision  two  of
    33  section 18-303 of this article, no participant nor participant's  repre-
    34  sentative  shall make  any claim against, maintain an action against, or
    35  recover  from an equine activity sponsor, an equine professional, or any
    36  other person for injury, loss,  damage,  or  death  of  the  participant
    37  resulting from any  of the inherent risks of equine activities.
    38    2.  Nothing  in  this  article  shall  limit  the application   of the
    39  provisions of section 9-103 of this chapter.
    40    § 18-305. Posting and notification.  1.    Every  equine  professional
    41  shall post and maintain signs which contain the warning notice specified
    42  in  subdivision two of this section. Such signs  shall  be  placed  in a
    43  clearly visible  location  in the proximity of the equine activity.  The
    44  warning notice specified in subdivision two of this section shall appear
    45  on the sign in black letters, with each letter to be a  minimum  of  one
    46  inch in height. Every written contract entered into by an equine profes-
    47  sional  for  the providing of professional services, instruction, or the
    48  rental of equipment or tack or an equine to a  participant,  whether  or
    49  not    the contract involves equine activities on or off the location or
    50  site of the equine professional's business,  shall  contain  in  clearly
    51  readable print  the warning notice specified in subdivision two of  this
    52  section.
    53    2.  The  signs and  contracts  described  in subdivision one  of  this
    54  section shall contain the following warning notice:
    55                                   WARNING

        S. 2944                            22
 
     1    Under  New York Law, an equine professional or equine activity sponsor
     2  is not liable for an injury to, or the death of, a participant in equine
     3  activities resulting from  the  inherent  risks  of  equine  activities,
     4  pursuant to section 18-304 of the General Obligations Law.
     5    §  31.  Severability.  If  any  section, part or provision of this act
     6  shall be declared unconstitutional, invalid or ineffective by any  court
     7  of  competent  jurisdiction,  such  declaration  shall be limited to the
     8  section, part or provision directly involved in any such controversy  in
     9  which  such declaration was made and shall not affect any other section,
    10  part or provision thereof.
    11    § 32. This act shall take effect immediately, provided, however, that:
    12    (a) The amendments effected by the provisions of sections two,  three,
    13  eleven,  fifteen, sixteen, seventeen, eighteen, twenty and twenty-one of
    14  this act shall apply to subject actions  commenced  on  and  after  such
    15  date;
    16    (b)  The  amendments effected by the provisions of sections four, five
    17  and six of this act shall take effect  on  the  first  of  January  next
    18  succeeding  the date on which it shall have become a law and shall apply
    19  to an action commencing on or after such date;
    20    (c) The amendments effected by the provisions of section  twenty-seven
    21  of this act shall apply to retainer agreements executed on or after such
    22  date; and
    23    (d)  The  amendments  effected  by the provisions of section thirty of
    24  this act shall take effect on the ninetieth  day  after  it  shall  have
    25  become a law.
          REPEAL  NOTE.--  Article  16  of  the  civil  practice  law and rules,
        proposed to be repealed by section three of this  act,  relates  to  the
        limited  liability  of  persons  jointly  liable in legal actions and is
        replaced by a new article 16 added by section three of this act;
          --Section 214-d of the civil practice law and rules,  proposed  to  be
        repealed  by  section  four  of  this act, relates to the limitations on
        certain  actions  against  licensed  engineers  and  architects  and  is
        replaced by a new section 214-d as added by section four of this act;
          --Section  241-a  of the labor law, proposed to be repealed by section
        fourteen of this act, relates to the protection of workers  in  elevator
        shafts;
          --Subdivision  (h)  of  Rule  3211 of the civil practice law and rules
        proposed to be repealed by section six of this act relates to  standards
        for  motions  to  dismiss  certain  cases involving licensed architects,
        engineers or landscape architects;
          --Subdivision (i) of Rule 3212 of the civil  practice  law  and  rules
        proposed  to be repealed by section six of this act relates to standards
        for summary judgment in certain  cases  involving  licensed  architects,
        engineers or landscape architects.