LOHIER, Circuit Judge:
In this appeal, involving a car accident, we consider an apparent conflict between two provisions of New York law: Section 29(6) of New York's Workers' Compensation Law ("Section 29(6)"), which provides that workers' compensation is the exclusive remedy of an employee injured by his co-employee's negligence, and Section 388 of New York's Vehicle and Traffic Law ("Section 388"), which provides that every owner of a vehicle operated in New York is liable for injuries resulting from the negligent permissive use of that vehicle. Ultimately, we conclude that the New York Court of Appeals is in a better position to resolve the conflict, if any, between these two provisions, both of which arguably apply in this case. The Court of Appeals previously prohibited plaintiffs who are injured by the negligence of a co-employee driver from suing the owner of the vehicle, reasoning that vicarious liability against the owner cannot exist in the absence of direct liability against the driver. More recent New York state court decisions have not been consistent on the issue, however, leading us to believe that the more specific question presented in this case is not yet fully resolved. Accordingly, we defer decision and certify the following question to the New York Court of Appeals:
This case arises from a car accident in New York. Third-party defendant-appellant Michael Koubek appeals from a decision of the United States District Court for the Northern District of New York (Sharpe, C.J.), which refused to dismiss the contribution claims of third-party plaintiffs-appellees Doris and Peter Hallock ("the Hallocks"). On November 27, 2007, Roberta Oldenborg, Koubek's wife, was driving Koubek's car back from a business meeting when she collided with a car driven by Doris Hallock (and owned by Peter Hallock). Oldenborg's co-worker, Matthew Isabella ("Isabella") had been riding as a passenger in Oldenborg's car and was injured in the accident. Because the injury occurred in the course of his employment, Isabella was prevented by New York's Workers' Compensation Law from suing Oldenborg, and he eventually obtained workers' compensation benefits.
In 2009 Isabella and his wife sued the Hallocks in federal court based on diversity of citizenship. They claimed that Doris Hallock's negligent and reckless driving proximately caused Isabella's injuries. In turn, the Hallocks filed a third-party complaint against Koubek for contribution and indemnification, claiming that his wife Oldenborg's negligence, not Doris Hallock's, proximately caused Isabella's injuries. Koubek countered that his wife's statutory immunity under Section 29(6) of the New York Workers' Compensation Law protected him from liability, and he moved for summary judgment.
The District Court denied Koubek's motion in view of Clamp v. Estate of Hales, 10 Misc.3d 988, 807 N.Y.S.2d 512 (Sup.Ct. 2005), which held that a defendant in the Hallocks' position could sue the owner of a car under New York Vehicle and Traffic Law § 388 even though the negligent driver of that car enjoyed statutory immunity based on Workers' Compensation Law § 29(6). The District Court reasoned that the purpose of Section 29(6) would not be frustrated by allowing the third-party suit to proceed because the parties were not related by employment.
Just before trial, the parties entered into an agreement pursuant to which the Isabellas would receive $800,000, plus interest, and the jury trial would apportion liability between Koubek and the Hallocks. The parties also agreed that if this Court were to reverse the District Court's denial of summary judgment on appeal, the Hallocks would be responsible for paying the full amount of the settlement. At trial, the jury found Koubek ninety percent liable and the Hallocks ten percent liable for the accident. After the District Court denied Koubek's post-trial motion for judgment as a matter of law, Koubek appealed.
"We review a district court's grant of summary judgment de novo, construing the evidence in the light most favorable to the non-moving party and drawing all reasonable inferences in its favor." Allianz Ins. Co. v. Lerner, 416 F.3d 109, 113 (2d Cir.2005). Summary judgment is appropriate "if the movant shows that there is
As we have noted, this case concerns the interplay of two New York State statutes. First, Section 29(6) of the Workers' Compensation Law, in relevant part, provides:
N.Y. Workers' Comp. Law § 29(6). Section 11 of the statute, in turn, provides in relevant part:
N.Y. Workers' Comp. Law § 11. Therefore, under New York law, an injured party who receives workers' compensation cannot sue the employer or co-employee whose negligence caused his injuries, nor can a third-party defendant sue the employer or co-employee for contribution. See Majewski v. Broadalbin-Perth Cent. Sch. Dist., 91 N.Y.2d 577, 585, 673 N.Y.S.2d 966, 696 N.E.2d 978 (1998). Second, Section 388 of the Vehicle & Traffic Law provides:
N.Y. Veh. & Traf. Law § 388(1). In other words, it is clear that under Section 388 a defendant in a tort action arising from a car accident caused by the driver's negligence can proceed with a claim for contribution against the owner of the car, so long as the driver operated the car with the owner's permission. The question presented on appeal, however, is whether Section 388 permits a defendant to proceed with a tort action for contribution against the car owner even when a direct cause of action by the defendant against the driver would be prohibited by Section 29(6)'s exclusive remedy provisions. There is no dispute that the accident occurred while Isabella and his co-employee, Oldenborg, the driver, were acting in the course of their employment, and that Oldenborg was therefore immune from suit under Section 29(6).
Opinions from the New York Court of Appeals and intermediate New York state courts suggest that the exclusive remedy provision also bars such a suit against the car owner. In Rauch v. Jones, 4 N.Y.2d 592, 176 N.Y.S.2d 628, 152 N.E.2d 63 (1958), the Court of Appeals held that Section 29(6) prevented an injured plaintiff from suing the owner of a vehicle where,
Id.
Naso v. Lafata, 4 N.Y.2d 585, 176 N.Y.S.2d 622, 152 N.E.2d 59 (1958), was decided the same day as Rauch, involved a very similar fact pattern, and "reached the same conclusion." Id. at 591, 176 N.Y.S.2d 622, 152 N.E.2d 59. Having been injured in an accident while a passenger in a car negligently driven by a co-employee, the plaintiff sued the owner of the car under section 59 of the Vehicle and Traffic Law. The New York Court of Appeals again rejected the suit, explaining:
4 N.Y.2d at 591, 176 N.Y.S.2d 622, 152 N.E.2d 59.
In a subsequent New York Court of Appeals case, Kenny v. Bacolo, 61 N.Y.2d 642, 472 N.Y.S.2d 78, 460 N.E.2d 219. (1983), the driver negligently drove a truck owned by the defendant, thereby causing the plaintiff's injuries in part. Because the driver was statutorily immune from suit under the federal Longshoremen's and Harbor Workers' Compensation Act, however, the court held that "there can be no liability imputed to [the truck owner] and no action can be sustained against it." See id. at 645, 472 N.Y.S.2d 78, 460 N.E.2d 219. As a result, the court concluded that a co-defendant in the plaintiff's lawsuit could not sue the owner of the truck for contribution. The court appears, then, to have precluded derivative liability against the owner in a contribution action because direct liability against the driver was statutorily prohibited.
Intermediate New York state courts have come to the same general conclusion. For example, Sikora v. Keillor, 17 A.D.2d 6, 230 N.Y.S.2d 571 (2d Dep't 1962), aff'd 13 N.Y.2d 610, 240 N.Y.S.2d 601, 191 N.E.2d 88 (1963), involved the negligent operation of the defendant's vehicle by a voluntary fireman in the course of the fireman's duties. The fireman was deemed immune from liability by reason of New York's General Municipal Law. Citing
Similarly, in Nelson v. Garcia, 152 A.D.2d 22, 548 N.Y.S.2d 963 (4th Dep't 1989), the Fourth Department held that a town that owned an ambulance was not vicariously liable under Section 388 for the injuries sustained by the plaintiff as a result of an accident caused by a town employee who was driving the ambulance. The Appellate Division observed that the employee "who was driving the ambulance ha[d] statutory immunity for his acts of ordinary negligence" under New York General Municipal Law Section 205-b. Id. at 965. As a result, the court concluded, "the Town has no vicarious liability as owner of the ambulance" because vicarious liability "by its very nature cannot be imposed upon the owner unless there is liability on the part of the driver. Thus the immunity of the driver immunizes the owner against a claim of vicarious liability." Id. at 964-65.
The Hallocks urge us to affirm the District Court's decision. As an initial matter, the Hallocks attempt to distinguish Kenny. They argue that a different workers' compensation statute applied in Kenny. They also point out that the employer in Kenny leased the vehicle, whereas Oldenborg drove a car that her husband owned. Neither of these differences is material. In particular, the exclusive remedy provisions of the New York Workers' Compensation Law are similar in every relevant way to the exclusive remedy provision of the Longshoremen's and Harbor Workers' Compensation Act; indeed, the court in Kenny cited state workers' compensation cases in support of its analysis. See Kenny, 61 N.Y.2d at 645, 472 N.Y.S.2d 78, 460 N.E.2d 219.
The Hallocks also rely, as the District Court did, on Clamp v. Estate of Hales, a fairly recent decision of the New York Supreme Court. The force of the decision in Clamp is that it confronted precisely the same question — and the same factual scenario and statutes — at issue on this appeal. Clamp involved an automobile accident in which a co-defendant sought contribution from a third-party vehicle owner who was unrelated by employment to the co-defendant. The owner claimed that he could not be held vicariously liable for the plaintiffs' injuries under Section 388 because the automobile driver involved in the accident was immune from suit under Sections 11 and 29(6). The court in Clamp rejected the owner's claim, reasoning that the Workers' Compensation Law was not "intended
Although Rauch, Naso, Kenny, and the other New York cases discussed above make us think that Koubek should not be held liable under Section 388, Clamp gives us pause because, as the District Court recognized, it is factually and legally indistinguishable from the case before us. In addition, the New York Court of Appeals more recently clarified that derivative liability may arise from the negligence of an immune party under certain circumstances, depending on the relevant statutory scheme giving rise to the immunity. In Tikhonova v. Ford Motor Company, 4 N.Y.3d 621, 624-25, 797 N.Y.S.2d 799, 830 N.E.2d 1127 (2005), the court permitted a lawsuit to proceed under Section 388 against the Ford Motor Company, the owner of the car, even though the driver of the car, a foreign diplomat driving in New York City, enjoyed full diplomatic immunity from suit. We recognize that in distinguishing Rauch and Naso, the court explained the unique role of the Workers' Compensation Law in those cases:
Tikhonova, 4 N.Y.3d at 625, 797 N.Y.S.2d 799, 830 N.E.2d 1127. But this language does not comfort us enough to rule in Koubek's favor. To the contrary, Tikhonova makes clear that we cannot automatically conclude that derivative liability against the owner is barred merely because direct liability against the driver was statutorily prohibited.
Second Circuit Local Rule 27.2 permits us to certify to the New York Court of Appeals "determinative questions of New York Law [that] are involved in a case pending before [us] for which no controlling precedent of the Court of Appeals exists." N.Y. Comp.Codes R. & Regs. tit. 22, § 500.27(a); see also N.Y. Const. Art. 6, § 3(b)(9). "In deciding whether to certify a question, we consider: (1) the absence of authoritative state court interpretations of the law in question; (2) the importance of the issue to the state, and whether the question implicates issues of state public policy; and (3) the capacity of certification to resolve the litigation." Georgitsi Realty, LLC v. Penn-Star Ins. Co., 702 F.3d 152, 158 (2d Cir.2012) (alteration and quotation marks omitted). All three factors favor certification.
First, the New York State Court of Appeals has not addressed this precise question. The only court that has done so is a state trial court, which appears to run against the trend of the most relevant Court of Appeals decisions. "Based on the... New York state decisions discussed
Second, the question identified for certification presents "important issues of New York law and policy." Barenboim v. Starbucks Corp., 698 F.3d 104, 117 (2d Cir.2012). Both of the statutes at issue here embody careful policy judgments. The exclusive remedy provisions of New York's Workers' Compensation Law are the "legislative implementation of [a] `trade-off'" between providing an injured employee with "a swift and sure source of benefits ... without regard to fault" and protecting employers from large damage verdicts by taking away that employee's "common-law right to sue his employer in tort and perhaps to enjoy a more substantial recovery through a jury award." Billy v. Consol. Mach. Tool Corp., 51 N.Y.2d 152, 159, 432 N.Y.S.2d 879, 412 N.E.2d 934 (1980) (quotation marks omitted); see also Gonzales v. Armac Indus., Ltd., 81 N.Y.2d 1, 9, 595 N.Y.S.2d 360, 611 N.E.2d 261 (1993). Section 388 of New York's Vehicle and Traffic Law was enacted "to assure injured plaintiffs that there will be a financially responsible party to provide compensation for negligent driving," Tikhonova, 4 N.Y.3d at 624, 797 N.Y.S.2d 799, 830 N.E.2d 1127, and "to change the common-law rule and to impose liability upon the owner of a vehicle for the negligence of a person legally operating the car with the permission ... of the owner," Hassan v. Montuori, 99 N.Y.2d 348, 353, 756 N.Y.S.2d 126, 786 N.E.2d 25 (2003) (alteration and quotation marks omitted). New York State should determine in the first instance how these policy goals interact with each other and determine which predominates in this case.
Finally, the resolution of this issue will "determine the outcome of this appeal." Georgitsi, 702 F.3d at 159. If the New York Court of Appeals determines that a vehicle owner is protected from third-party contribution suits by the Workers' Compensation Law, the Hallocks will pay the $800,000 settlement sum, plus interest, to compensate the Isabellas for their injuries. If, on the other hand, the court determines that defendants may pursue a third-party action against the vehicle owner, the Hallocks will pay only ten percent of the settlement sum, and Koubek will pay the remaining ninety percent. Either decision will resolve this case.
For the foregoing reasons, we respectfully certify the following question to the New York Court of Appeals:
In certifying this question, we understand that the New York Court of Appeals, if it accepts the case, may reformulate or expand the certified question as it deems appropriate. We do not intend this articulation of the above specified question to limit the scope of the analysis by the Court of Appeals.
The foregoing is hereby certified to the Court of Appeals of the State of New York pursuant to 2d Cir. L.R. 27.2 and N.Y. Comp.Codes R. & Regs. tit. 22, § 500.27(a), as ordered by the United States Court of Appeals for the Second Circuit. This panel will retain jurisdiction of the present appeal for resolution after disposition of the certified question by the New York Court of Appeals.