December 2, 2022

Metro Med. Diagnostics, P.C. v Country-Wide Ins. Co. (2022 NY Slip Op 51248(U))

https://www.beynensonlaw.com/case-law/metro-med-diagnostics-p-c-v-country-wide-ins-co-2022-ny-slip-op51248u/

Court: Appellate Term, Second Department
Decided: December 2, 2022
Citation: 2022 NY Slip Op 51248(U)
Posture: Other motion
Outcome: Provider prevailed
Issues: Interest and attorney fees

Cite as

Metro Med. Diagnostics, P.C. v Country-Wide Ins. Co., 2022 NY Slip Op 51248(U) (App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2022)

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Summary

Editorial summary by Beynenson Law, not part of the court’s decision.

The provider's statutory no-fault interest was improperly tolled after settlement because the insurer did not show any impediment to payment. The Appellate Term, Second Department, reversed the judgment, insofar as appealed from, and remitted for entry of a new judgment. The insurer had not paid a settlement, and the Civil Court, Queens County, initially awarded simple interest. On the provider's CPLR 5019 (a) correction motion, the Civil Court directed interest at 2% per month, compounded, but tolled accrual from settlement until the motion. Under CPLR 5003-a (e), the insurer was obligated to pay without a demand from the prevailing provider. Because the insurer did not show that the provider prevented payment, the toll was erroneous.

Reported in New York Official Reports at Metro Med. Diagnostics, P.C. v Country-Wide Ins. Co. (2022 NY Slip Op 51248(U))

SUPREME COURT, APPELLATE TERM, SECOND DEPARTMENT, 2d, 11th and 13th JUDICIAL DISTRICTS

Metro Medical Diagnostics, P.C., as Assignee of Miroslaw Bazan, Appellant,
against
Country-Wide Insurance Company, Respondent.

Glinkenhouse Queen, Esqs. (Alan Queen of counsel), for appellant. Thomas Torto, for respondent.

Appeal, on the ground of inadequacy, from a judgment of the Civil Court of the City of New York, Queens County (Larry Love, J.), entered October 12, 2021. The judgment, insofar as appealed from, upon awarding plaintiff the principal sum of $652.20 pursuant to a stipulation of settlement entered into in July 2010, awarded plaintiff statutory no-fault interest from February 14, 2017.

ORDERED that the judgment, insofar as appealed from, is reversed, with $30 costs, and the matter is remitted to the Civil Court for the entry of a new judgment in accordance with this decision and order.

This action by a provider to recover assigned first-party no-fault benefits was commenced in 2001 and settled in July 2010. Defendant did not pay the settlement amount, and a judgment was subsequently entered on January 31, 2017 pursuant to CPLR 5003-a, awarding plaintiff statutory no-fault interest from the date of the settlement at a simple rate. In February 2017, plaintiff moved, pursuant to CPLR 5019 (a), to, in effect, correct the January 31, 2017 judgment by recalculating the statutory no-fault interest from a simple rate to a compound rate. By order entered February 22, 2018, the Civil Court granted the motion, directed the clerk to recalculate the interest at a rate of 2% per month, compounded, but, sua sponte, tolled the accrual of [*2]statutory no-fault interest from July 26, 2010 through February 14, 2017. A judgment was entered on October 12, 2021, accordingly.

Plaintiff correctly argues that the Civil Court erred in tolling the statutory no-fault interest from the date of the settlement to the date of plaintiff’s motion. Once the case settled, defendant was obligated to pay the agreed-upon amount to plaintiff (see CPLR 5003-a) and “plaintiff, as the prevailing party, was not required to make a demand for the money” (Seaside Rehabilitation v Allstate Ins. Co., 63 Misc 3d 162[A], 2019 NY Slip Op 50918[U], *1 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2019] [internal quotation marks omitted; see CPLR 5003-a [e]). Defendant did not demonstrate that plaintiff had prevented defendant in any way from paying the settlement amount (see ERHAL Holding Corp. v Rusin, 252 AD2d 473 [1998]; Juracka v Ferrara, 120 AD2d 822 [1986]; Craniofacial Pain Mgt. v Allstate Ins. Co., 61 Misc 3d 155[A], 2018 NY Slip Op 51825[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2018]). Therefore, the Civil Court erred in tolling the accrual of interest (see Seaside Rehabilitation v Allstate Ins. Co., 2019 NY Slip Op 50918[U]).

Accordingly, the judgment, insofar as appealed from, is reversed and the matter is remitted to the Civil Court for the entry of a new judgment in accordance with this decision and order.

ALIOTTA, P.J., TOUSSAINT and BUGGS, JJ., concur.

ENTER:
Paul Kenny
Chief Clerk
Decision Date: December 2, 2022

Cited in this decision

A label shows how this decision treated the case it cites.

Seaside Rehabilitation v Allstate Ins. Co. (2019 NY Slip Op 50918(U)) FollowedThe insurer failed to justify tolling no-fault interest because it did not show that the provider prevented settlement payment.
Craniofacial Pain Mgt. v Allstate Ins. Co. (2018 NY Slip Op 51825(U))A no-fault money judgment bears simple interest at nine percent annually from entry until payment under CPLR 5003 and 5004.

Similar decisions

Metro Med. Diagnostics, P.C. v Country Wide Ins. Co. (2024 NY Slip Op 50119(U))Statutory no-fault interest was improperly tolled through judgment because the insurer did not show that the provider prevented payment.
NCT Diagnostics, Inc. v Countrywide Ins. Co. (2022 NY Slip Op 51247(U))The provider's postsettlement no-fault interest was improperly tolled because the insurer did not establish that the provider prevented payment.
Biotech Surgical Supply, Inc. v Country Wide Ins. Co. (2024 NY Slip Op 50118(U))Statutory no-fault interest was improperly tolled because the insurer did not show that the provider prevented settlement payment.
Berenblit v Country Wide Ins. Co. (2025 NY Slip Op 50487(U))The provider's delay in entering judgment on an unpaid settlement did not justify tolling statutory no-fault interest.
Health Value Med., P.C. v Country Wide Ins. (2022 NY Slip Op 51137(U))A no-fault claim arising from an accident before April 5, 2002 is governed by the former regulations requiring compound interest.