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May 24, 2019

Faith Acupuncture, P.C. v Government Empls. Ins. Co. (2019 NY Slip Op 50829(U))

https://www.beynensonlaw.com/case-law/faith-acupuncture-p-c-v-government-empls-ins-co-2019-ny-slip-op50829u/

Court
Appellate Term, Second Department
Decided
May 24, 2019
Citation
2019 NY Slip Op 50829(U)
Posture
Default or vacatur
Outcome
Insurer prevailed
Later treatment
Followed in 2 later decisions (see Cited by)
Issues
Defaults and vacatur
Cite as
Faith Acupuncture, P.C. v Government Empls. Ins. Co., 2019 NY Slip Op 50829(U) (App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2019)

Posture, outcome, issues and treatment by other decisions are Beynenson Law’s classification. Treatment labels are assigned by a language model reading the citing decision; negative and appeal-history labels are checked by a second reader.

Summary

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

The provider's unexplained law office failure did not justify its delay in filing a notice of trial after a 90-day demand. Under CPLR 3216 (b) (3) and (c), the provider had to file within 90 days or timely move to vacate the demand or extend the period under CPLR 2004. Having done neither, it needed a justifiable excuse and a meritorious cause of action under CPLR 3216 (e). Although CPLR 2005 permits acceptance of law office failure, counsel supplied no detailed, credible explanation. The Appellate Term, Second Department, reversed the order, insofar as appealed from, and granted the insurer's CPLR 3216 dismissal motion; it found consideration of the claim's merits unnecessary.

Reported in New York Official Reports at Faith Acupuncture, P.C. v Government Empls. Ins. Co. (2019 NY Slip Op 50829(U))

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

Faith Acupuncture, P.C., as Assignee of Darlene Davis, Respondent,

against

Government Employees Insurance Co., Appellant.

Law Office of Goldstein & Flecker (Lawrence J. Chanice of counsel), for appellant. Zara Javakov, P.C. (Zara Javakov of counsel), for respondent.

Appeal from an order of the Civil Court of the City of New York, Kings County (Mary V. Rosado, J.), dated February 7, 2017. The order, insofar as appealed from, denied defendant’s motion to dismiss the complaint pursuant to CPLR 3216.

ORDERED that the order, insofar as appealed from, is reversed, with $30 costs, and defendant’s motion to dismiss the complaint pursuant to CPLR 3216 is granted.

Plaintiff commenced this action to recover assigned first-party no-fault benefits on May 10, 2011. Defendant interposed an answer on June 29, 2011. On August 6, 2015, defendant served plaintiff’s attorney with a 90-day written demand pursuant to CPLR 3216 (b) (3), which was received on August 10, 2015. By notice of motion dated March 11, 2016, defendant moved, pursuant to CPLR 3216, to dismiss the complaint on the ground that defendant had not been served with a notice of trial. In opposition to the motion, plaintiff stated that it had filed a notice of trial on November 23, 2016. It further argued that law office failure was the reason for the delay and that it had a meritorious cause of action. By order dated February 7, 2017, insofar as is relevant to this appeal, the Civil Court denied defendant’s motion, finding that plaintiff had established a “reasonable excuse” for its delay and a meritorious “defense” [sic].

Upon receiving a 90-day demand, a plaintiff must either comply with the demand by filing a notice of trial within 90 days thereafter (see CPLR 3216 [b] [3]; [c]) or move before the default date either to vacate the demand or to extend the 90-day period pursuant to CPLR 2004 (see Felix v County of Nassau, 52 AD3d 653 [2008]; Katina, Inc. v Town of Hempstead, 13 AD3d 343 [2004]; A.M. Med., P.C. v State Farm Mut. Ins. Co., 22 Misc 3d 43 [App Term, 2d Dept, 2d & 11th Jud Dists 2008]). Here, since plaintiff filed a notice of trial more than 90 days after its receipt of the 90-day demand and had not moved prior thereto to vacate the demand or to extend the 90-day period, it was required, in opposition to defendant’s motion to dismiss, to establish both a justifiable excuse for its delay and the existence of a meritorious cause of action (see CPLR 3216 [e]; Baczkowski v Collins Constr. Co., 89 NY2d 499 [1997]; Felix, 52 AD3d 653; A.M. Med., P.C., 22 Misc 3d 43). While a court, in its discretion, may accept a claim of law office failure as an excuse (see CPLR 2005), here, the affirmation submitted by plaintiff’s attorney in opposition to defendant’s motion did not provide a detailed and credible explanation of the law office failure that had caused the delay (see Premier Surgical Servs., P.C. v Allstate Ins. Co., 58 Misc 3d 160[A], 2018 NY Slip Op 50273[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2018]; Bayshore Chiropractic, P.C. v Allstate Ins. Co., 56 Misc 3d 141[A], 2017 NY Slip Op 51121[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2017]; Comeau v McClacken, 5 Misc 3d 134[A], 2004 NY Slip Op 51455[U] [App Term, 2d Dept, 2d & 11th Jud Dists 2004]). Consequently, plaintiff’s claim of law office failure did not rise to the level of a justifiable excuse. In view of the foregoing, it is unnecessary to consider whether plaintiff demonstrated the existence of a meritorious cause of action (see generally Levi v Levi, 46 AD3d 519 [2007]; Premier Surgical Servs., P.C., 58 Misc 3d 160[A], 2018 NY Slip Op 50273[U]).

Accordingly, the order, insofar as appealed from, is reversed and defendant’s motion to dismiss the complaint pursuant to CPLR 3216 is granted.

WESTON, J.P., PESCE and SIEGAL, JJ., concur.



ENTER:
Paul Kenny
Chief Clerk
Decision Date: May 24, 2019

Cited in this decision

  • A.M. Med., P.C. v State Farm Mut. Ins. Co. (2008 NY Slip Op 28487)The provider waived objections to defects in the insurer's 90-day demand and failed to justify its delay or show a meritorious claim.
  • Premier Surgical Servs., P.C. v Allstate Ins. Co. (2018 NY Slip Op 50273(U))The insurer's conclusory claim of law office failure did not establish a reasonable excuse for its default in appearing or answering.
  • Bayshore Chiropractic, P.C. v Allstate Ins. Co. (2017 NY Slip Op 51121(U))The insurer's explanation of law office failure during a file transfer showed attorney neglect and did not reasonably excuse its default.

Cited by

A label shows how the later decision treated this one.

  • Faith Acupuncture, P.C. v GEICO Ins. (2019 NY Slip Op 51173(U)) FollowedThe insurer's CPLR 3216 dismissal was reinstated because the provider's law office failure claim was not a justifiable excuse.
  • Midland Acupuncture, P.C. v GEICO Ins. Co. (2020 NY Slip Op 51509(U)) FollowedThe provider's law office failure affidavit did not justify its failure to respond to a 90-day demand under CPLR 3216.

Similar decisions

  • Silver Acupuncture, P.C. v GEICO Gen. Ins. Co. (2021 NY Slip Op 50833(U))The provider's failure to file a notice of trial after a 90-day demand was not excused by its unexplained claim of law office failure.
  • Silver Acupuncture, P.C. v GEICO Indem. Co. (2020 NY Slip Op 51134(U))The provider failed to give a credible law office failure excuse for filing its notice of trial after the 90-day demand period.
  • Pro Health Acupuncture, P.C. v GEICO Ins. (2019 NY Slip Op 50501(U))The provider's complaint was dismissed after it first sought to excuse noncompliance with a 90-day demand in sur-reply.
  • Faith Acupuncture, P.C. v Global Liberty Ins. (2017 NY Slip Op 51806(U))The insurer failed to establish its fee schedule defense and timely mailing of IME scheduling letters.
  • Faith Acupuncture, P.C. v Maya Assur. Co. (2014 NY Slip Op 51863(U))The insurer failed to establish proper mailing of IME scheduling letters and was denied summary judgment on its nonappearance defense.
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