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THE CAUSES OF ACTION FOR INDEMNITY AND CONTRIBUTION IN THIS SLIP AND FALL CASE DO NOT ACCRUE UNTIL THE UNDERLYING CLAIM IS PAID, WHICH HAS NOT HAPPENED YET; THEREFORE THE STATUTE OF LIMITATIONS ON THOSE CAUSES OF ACTION HAS NOT YET STARTED TO RUN (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the indemnity and contribution causes of action in the slip and fall case should not have been dismissed as time-barred. The statute of limitations starts to run on these causes action when the underlying claim has been paid, which had not yet occurred:

“The statute of limitations on a claim for indemnity or contribution accrues only when the person seeking indemnity or contribution has paid the underlying claim” … . Here, it is undisputed that the plaintiff has yet to recover any judgment against the defendants. Thus, since the sixth and seventh causes of action in the third-party complaint … are predicated upon [the] alleged obligation to indemnify the defendants, those causes of action have yet to accrue. Sibrian v 244 Madison Realty Corp., 2022 NY Slip Op 06732, Second Dept 11-23-22

Practice Point: The causes of action for indemnity and contribution in this slip and fall case accrue when the underlying claim is paid, not when the slip and fall occurred. Here the underlying claim had not yet been paid and the statute never started running.

 

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