White v. Ramirez

In White v. Ramirez (159 Misc. 2d 925, [1994]) the court denied MVAIC's claim of an offset from plaintiff's settlement with two insured defendants. In White, the plaintiff was a passenger in an uninsured taxi which was involved in an accident with an insured vehicle. Prior to trial, plaintiff settled with the insured vehicle for $ 10,000, and MVAIC consequently claimed an offset against its statutory liability. The White court denied MVAIC's claim, holding that: "if after trial the insured defendants are exonerated of any responsibility for the accident, the consequence is that MVAIC would not have suffered any prejudice as a result of the settlement as it would not have been deprived of an offset against its liability . . . " (at 927). The White court further held that (at 927): "the mere fact that a settlement was made with parties alleged in the complaint to be jointly and severally liable with the uninsured defendants does not deprive plaintiff of the right to proceed against MVAIC as the statute providing for an offset does not talk in terms of monies received in settlement from parties allegedly liable, but rather only those adjudged liable."