by John Darer® CLU ChFC MSSC RSP CLTC
In response to the Superintendent’s motion to expedite the appeal of Justice Galasso’s rulings and decision, the appellants have reached an agreement with the Superintendent on an expedited appeal schedule.
According to an Affirmation submitted to the New York Supreme Court Appellate Division, Second Department by the appellants’ counsel on July 6, the appellants and the Superintendent have agreed to the following deadlines:
August 3, 2012 Filing of the appellants’ brief and the record will be August 17
September 7, 2012 Filing of the Superintendent’s response brief
September 14, 2012 Filing of any reply brief by the appellants
Oral argument should be set by the Court “as soon as practicable” after September 14, 2012.
While this agreement should improve the chances that the appeal will be heard and resolved by the Appellate Division by sometime in October or November, NSSTA members were informed that it remains unlikely that the liquidation date for ELNY and the closing date under the Restructuring Agreement will occur before the end of the year or the first quarter of 2013, even assuming that Justice Galasso’s rulings are affirmed and there is no further appeal.
The Appeal was filed on May 31,2012 by attorneys representing 18 of the 1,500 shortfall payees.
While the Appeal is pending it is this author's understanding that payees will continue to be paid in full. The impact on the ELNY estate and other shortfall and non-shortfall annuity payees from the Appeal delay is unknown at this time.