Rohring v. City of Niagara Falls

Eric Rohring (plaintiff) was injured while working for the City of Niagara Falls (city) (defendant). In March 1989, the supreme court granted summary judgment against the city regarding liability. In February 1991, the jury awarded Rohring approximately $2.5 million in past and future damages, which the trial court structured pursuant to Article 50-B of the Civil Practice Law and Rules (CPLR). Thus, among other things, the supreme court ordered that Rohring receive the first $250,000 of future damages in a lump sum, with the remaining future damages to be paid in periodic installments after the deduction of attorney’s fees. With respect to attorney’s fees on the future damages, the supreme court determined the present value of such fees and subtracted that amount from the undiscounted value of future damages. In addition, the supreme court awarded Rohring prejudgment interest on his future damages as of the court’s summary-judgment order. The appellate division reversed with respect to attorney’s fees, ruling that attorney’s fees must be deducted from the present value of future damages, not from the undiscounted gross future damages. However, the appellate division affirmed the supreme court’s prejudgment-interest ruling. Both parties appealed. Rohring argued that the supreme court’s attorney’s-fees methodology was correct. The city argued that Rohring was not entitled to prejudgment interest for costs he did not yet incur and that interest was improper unless and until a periodic payment was overdue.