APPELLATE COURT RULES IN FAVOR OF WORKER WHO WAS SEEKING COMPENSATION FROM INSURANCE COMPANY AFTER SUSTAINING INJURY ON THE JOB

Alegria & Barovick LLP announced that the firm won an appeal on behalf of an electrician who was injured on the job and sought recovery of an unsatisfied judgment against the employer and its insurance company.

On May 29, 2007, Pramendra Persaud sustained injuries when he fell off a balcony while performing electrical work for Vishwa Sooklall and his company, Future Home Builders, Inc. Mr. Persaud and his wife commenced an action against Mr. Sooklall and Future Home, but the company’s insurer, Everest National Insurance Company, refused to cover the claim, citing late notice.

The Persauds obtained a default judgment against Mr. Sooklall and Future Home in the amount of $20 million and later commenced this declaratory judgment action to recover this amount from their insurer. Everest moved to dismiss the complaint, which was granted by the New York State Supreme Court, Queens County, on April 1, 2014. The plaintiffs moved to vacate the order and to deny the insurance company’s motion to dismiss. The court granted the plaintiffs’ request and Everest appealed.

On August 10, 2016, the New York State Supreme Court, Appellate Division, Second Judicial Department, upheld the lower court’s ruling, stating that the insurance company offered insufficient proof that the claim was not made in a timely fashion, and that the plaintiffs’ allegations must be treated as factual.

Barovick Law represented the plaintiff. “We are very pleased with the decision,” he said. “My client was seriously injured on the job, yet neither his employer nor its insurance company wanted to compensate him for his pain and suffering. It was unfair to deny Mr. Persaud the opportunity to pursue the insurance company for the amount of the prior judgment and I’m glad the court saw it that way.”

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