Bay LS Med. Supplies, Inc. v Allstate Ins. Co. (2017 NY Slip Op 50031(U))

Reported in New York Official Reports at Bay LS Med. Supplies, Inc. v Allstate Ins. Co. (2017 NY Slip Op 50031(U))

[*1]
Bay LS Med. Supplies, Inc. v Allstate Ins. Co.
2017 NY Slip Op 50031(U) [54 Misc 3d 131(A)]
Decided on January 5, 2017
Appellate Term, Second Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and will not be published in the printed Official Reports.

Decided on January 5, 2017

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


PRESENT: : PESCE, P.J., SOLOMON and ELLIOT, JJ.
2015-491 K C
Bay LS Medical Supplies, Inc., as Assignee of Ana Valdizon, Respondent,

against

Allstate Insurance Company, Appellant.

Appeal from an order of the Civil Court of the City of New York, Kings County (Robin S. Garson, J.), entered November 1, 2013, deemed from a judgment of the same court, entered November 25, 2013 (see CPLR 5512 [a]). The judgment, entered pursuant to the November 1, 2013 order granting plaintiff’s motion for summary judgment and denying defendant’s cross motion for summary judgment dismissing the complaint, awarded plaintiff the principal sum of $1,715.

ORDERED that the judgment is reversed, with $30 costs, the order entered November 1, 2013 is vacated, plaintiff’s motion for summary judgment is denied and defendant’s cross motion for summary judgment dismissing the complaint is granted.

In this action by a provider to recover assigned first-party no-fault benefits, plaintiff moved for summary judgment, and defendant cross-moved for summary judgment dismissing the complaint on the ground that plaintiff had failed to appear for duly scheduled examinations under oath. Defendant appeals from an order of the Civil Court entered November 1, 2013, which granted plaintiff’s motion and denied defendant’s cross motion. A judgment was subsequently entered pursuant to the November 1, 2013 order, awarding plaintiff the principal sum of $1,715, from which the appeal is deemed to have been taken (see CPLR 5512 [a]).

For the reasons stated in Bay LS Med. Supplies, Inc. v Allstate Ins. Co. (50 Misc 3d 147[A], 2016 NY Slip Op 50319[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2016]), the judgment is reversed, the order entered November 1, 2013 is vacated, plaintiff’s motion for summary judgment is denied and defendant’s cross motion for summary judgment dismissing the complaint is granted.

Pesce, P.J., Solomon and Elliot, JJ., concur.


Decision Date: January 05, 2017
Daily Med. Equip. Distrib. Ctr., Inc. v Allstate Ins. Co. (2017 NY Slip Op 50029(U))

Reported in New York Official Reports at Daily Med. Equip. Distrib. Ctr., Inc. v Allstate Ins. Co. (2017 NY Slip Op 50029(U))

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

Daily Medical Equipment Distribution Center, Inc., as Assignee of Mark Coleman, Respondent,

against

Allstate Insurance Company, Appellant.

Appeal from an order of the Civil Court of the City of New York, Kings County (Carol Ruth Feinman, J.), entered July 30, 2014. The order, insofar as appealed from and as limited by the brief, denied defendant’s cross motion for summary judgment dismissing the complaint.

ORDERED that the order, insofar as appealed from, is affirmed, with $25 costs.

In this action by a provider to recover assigned first-party no-fault benefits, plaintiff moved for summary judgment, and defendant cross-moved for summary judgment dismissing the complaint on the ground that the automobile insurance policy in question had been issued in Florida, and that, based upon a conflict-of-law analysis, Florida law applied, pursuant to which there was a lack of coverage due to the rescission of the automobile insurance policy. The Civil Court, by order dated July 30, 2014, denied both motions finding, pursuant to CPLR 3212 (g), that both parties had established their prima facie cases and that the only triable issue of fact is whether the assignor had the intent to misrepresent on his insurance application.

On appeal, defendant contends that Florida law controls and, pursuant to said law, an insurer does not have to prove intent to misrepresent in order to void a policy ab initio; rather, an insurer only has to show that the policy was validly rescinded pursuant to the laws of Florida.

At the time of the accident at issue, which occurred in New York, the vehicle was insured by defendant under a Florida automobile insurance policy, and was being driven by the policyholder, plaintiff’s assignor. After defendant’s investigation revealed that, at the time the insured applied for automobile insurance, plaintiff’s assignor did not reside at the Florida address listed on the insurance application and that the vehicle was not garaged at that Florida address, defendant rescinded the policy, ab initio, pursuant to Florida Statutes Annotated, title 37, § 627.409, which permits the retroactive cancellation of an insurance contract if there has been a material misrepresentation in an application for insurance.

Inasmuch as defendant’s cross motion papers failed to demonstrate that a rescission notice was sent to the insured, or that defendant had returned, or tendered, all premiums paid to the insured within a reasonable period of time after defendant’s discovery of the grounds for rescinding the policy, defendant failed to show, prima facie, that it had voided the policy ab initio pursuant to Florida law (see W.H.O. Acupuncture, P.C. v Infinity Prop. & Cas. Co., 36 Misc 3d 4, 6-7 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2012], citing Leonardo v State Farm Fire [*2]and Cas. Co., 675 So 2d 176, 179 [Fla Dist Ct App, 4th Dist 1996]). Consequently, defendant’s cross motion for summary judgment dismissing the complaint was properly denied.

Accordingly, the order, insofar as appealed from, is affirmed.

Pesce, P.J., Weston and Aliotta, JJ., concur.


Decision Date: January 05, 2017
National Med. & Surgical Supply, Inc. v ELRAC, Inc. (2017 NY Slip Op 50028(U))

Reported in New York Official Reports at National Med. & Surgical Supply, Inc. v ELRAC, Inc. (2017 NY Slip Op 50028(U))

[*1]
National Med. & Surgical Supply, Inc. v ELRAC, Inc.
2017 NY Slip Op 50028(U) [54 Misc 3d 131(A)]
Decided on January 5, 2017
Appellate Term, Second Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and will not be published in the printed Official Reports.


Decided on January 5, 2017
SUPREME COURT, APPELLATE TERM, SECOND DEPARTMENT, 2d, 11th and 13th JUDICIAL DISTRICTS

PRESENT: : PESCE, P.J., SOLOMON and ELLIOT, JJ.
2014-2071 K C

National Medical & Surgical Supply, Inc., as Assignee of Guarionex Volcy, Appellant,

against

ELRAC, Inc., Doing Business as Enterprise Rent-A-Car, Respondent.


Appeal from an order of the Civil Court of the City of New York, Kings County (Steven Z. Mostofsky, J.), entered July 14, 2014. The order granted defendant’s motion for summary judgment dismissing the complaint.

ORDERED that the order is affirmed, with $25 costs.

In this action by a provider to recover assigned first-party no-fault benefits, plaintiff appeals from an order of the Civil Court which granted defendant’s motion for summary judgment dismissing the complaint.

The affidavits submitted by defendant established that the examination under oath (EUO) scheduling letters and the denial of claim form had been timely mailed (see St. Vincent’s Hosp. of Richmond v Government Empls. Ins. Co., 50 AD3d 1123 [2008]). Defendant also submitted affidavits from the receptionists at defense counsel’s law firm, which affidavits were sufficient to establish that plaintiff’s assignor had failed to appear at either of the duly scheduled EUOs (see Stephen Fogel Psychological, P.C. v Progressive Cas. Ins. Co., 35 AD3d 720 [2006]).

Contrary to plaintiff’s assertion, there is no basis for a distinction between defendant’s contractual remedies when “the failure to appear for [EUOs] occurs before the submission of the claim form or after its submission” (id. at 722). The appearance of a provider’s assignor at a duly requested EUO is a condition precedent to an insurer’s liability on a policy (see 11 NYCRR 65-1.1; Stephen Fogel Psychological, P.C., 35 AD3d at 722), and plaintiff does not claim to have responded in any way to the EUO requests. Therefore, plaintiff’s objections regarding the EUO requests will not now be heard (see Viviane Etienne Med. Care, P.C. v State Farm Mut. Auto. Ins. Co., 35 Misc 3d 127[A], 2012 NY Slip Op 50579[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2012]; Crescent Radiology, PLLC v American Tr. Ins. Co., 31 Misc 3d 134[A], 2011 NY Slip Op 50622[U] [App Term, 2d Dept, 9th & 10th Jud Dists 2011]).

Accordingly, the order is affirmed.

Pesce, P.J., Solomon and Elliot, JJ., concur.


Decision Date: January 05, 2017American Tr. Ins. Co. v Baucage (2017 NY Slip Op 00015)

Reported in New York Official Reports at American Tr. Ins. Co. v Baucage (2017 NY Slip Op 00015)

American Tr. Ins. Co. v Baucage
2017 NY Slip Op 00015 [146 AD3d 413]
January 3, 2017
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, March 1, 2017

[*1]

 American Transit Insurance Company, Respondent,
v
Gerbert Baucage et al., Defendants, and Innovative Medical Heights, P.C., Appellant.

Law Office of Gregory A. Goodman, P.C., Hauppauge (Gregory A. Goodman of counsel), for appellant.

Law Offices of Daniel J. Tucker, Brooklyn (Joshua M. Goldberg of counsel), for respondent.

Order, Supreme Court, New York County (Arthur F. Engoron, J.), entered July 11, 2016, which granted plaintiff’s motion for a default judgment pursuant to CPLR 3215 declaring that it owes no duty to pay any pending or future no-fault claims arising out of a September 24, 2014 motor vehicle accident, and denied the cross motion of defendant Innovative Medical Heights, P.C. (Innovative Medical) for summary judgment dismissing the complaint as against it and for attorneys’ fees, unanimously affirmed, without costs.

Supreme Court properly granted plaintiff’s motion for a default judgment. The record demonstrates that plaintiff submitted proof that it served Innovative Medical with the summons and complaint, Innovative Medical does not deny that it was received, and Innovative Medical failed to set forth a reasonable excuse as to why it failed to timely answer the complaint (see CPLR 3215 [a], [f]). Innovative Medical’s claim that plaintiff accepted its untimely answer by failing to reject it fails, because plaintiff moved for the default judgment within 13 days of its receipt (see e.g. Katz v Perl, 22 AD3d 806, 807 [2d Dept 2005]).

Furthermore, Innovative Medical’s cross motion was properly denied. Since Innovative Medical never properly filed an answer, it may not ask the court to reach the merits of the action because CPLR 3212 (a) expressly provides that a motion for summary judgment may only be made after joinder of issue (see Afco Credit Corp. v Mohr, 156 AD2d 287 [1st Dept 1989]). Concur—Friedman, J.P., Sweeny, Richter, Manzanet-Daniels and Kapnick, JJ.

Palisade Surgery Ctr. LLC v Allstate Prop. & Cas. Ins. Co. (2016 NY Slip Op 51824(U))

Reported in New York Official Reports at Palisade Surgery Ctr. LLC v Allstate Prop. & Cas. Ins. Co. (2016 NY Slip Op 51824(U))

[*1]
Palisade Surgery Ctr. LLC v Allstate Prop. & Cas. Ins. Co.
2016 NY Slip Op 51824(U) [54 Misc 3d 129(A)]
Decided on December 29, 2016
Appellate Term, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and will not be published in the printed Official Reports.

Decided on December 29, 2016

SUPREME COURT, APPELLATE TERM, FIRST DEPARTMENT
PRESENT: Schoenfeld, J.P., Ling-Cohan, J.
570152/16
Palisade Surgery Center LLC and Tutto Anesthesia a/a/o Fresia Macias, Plaintiffs-Appellants,

against

Allstate Property & Casualty Insurance Company, Defendant-Respondent.

Plaintiffs, as limited by their briefs, appeal from so much of an order of the Civil Court of the City of New York, New York County (Tanya R. Kennedy, J.), entered July 30, 2015, as denied their cross motion for summary judgment on the issue of medical necessity.

Per Curiam.

Order (Tanya R. Kennedy, J.), entered July 30, 2015, affirmed, with $10 costs.

The issue of medical necessity was not fully litigated or decided in the prior first-party no-fault action, and thus the doctrine of collateral estoppel does not bar defendant-insurer from raising the medical necessity defense in this action (see Kaufman v Eli Lilly & Co., 65 NY2d 449 [1985]; cf. Buechel v Bain, 97 NY2d 295, 303-304 [2001], cert denied 535 US 1096 [2002]). On the merits, we agree with Civil Court that the conflicting medical expert opinions adduced by the parties sufficed to raise a triable issue as to the medical necessity of the manipulation under anesthesia procedure underlying plaintiff’s claims (see Orthopedic Specialist of Greater NY v Chubb Indem. Ins. Co., 47 Misc 3d 137[A], 2015 NY Slip Op 50565[U] [App Term, 1st Dept 2015]; Doctor Richard Med., P.C. v Praetorian Ins. Co., 37 Misc 3d 128[A], 2012 NY Slip Op 51909[U] [App Term, 1st Dept 2012]).

THIS CONSTITUTES THE DECISION AND ORDER OF THE COURT.


I concur I concur
Decision Date: December 29, 2016
Matter of Global Liberty Ins. Co. v Coastal Anesthesia Servs., LLC (2016 NY Slip Op 08964)

Reported in New York Official Reports at Matter of Global Liberty Ins. Co. v Coastal Anesthesia Servs., LLC (2016 NY Slip Op 08964)

Matter of Global Liberty Ins. Co. v Coastal Anesthesia Servs., LLC
2016 NY Slip Op 08964 [145 AD3d 644]
December 29, 2016
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, February 1, 2017

[*1]

 In the Matter of Global Liberty Insurance Co., Appellant,
v
Coastal Anesthesia Services, LLC, as Assignee of Lourdes Irizarry, Respondent.

The Law Office of Jason Tenenbaum, P.C., Garden City (Jason Tenenbaum of counsel), for appellant.

Russell Friedman & Associates, LLP, Lake Success (Dara C. Goodman of counsel), for respondent.

Order, Supreme Court, Bronx County (Julia I. Rodriguez, J.), entered April 6, 2016, which denied petitioner’s application to vacate a master arbitration award entitling respondent to no-fault insurance benefits, and granted respondent’s cross motion to confirm the award, unanimously affirmed, with costs.

Petitioner failed to demonstrate the existence of any of the statutory grounds for vacating the Master Arbitrator’s award (CPLR 7511 [b]). The decision of the Master Arbitrator in affirming the arbitration award had evidentiary support, a rational basis, and was not arbitrary and capricious (see Matter of Petrofsky [Allstate Ins. Co.], 54 NY2d 207, 211 [1981]). The original arbitrator properly acted within her discretionary authority to refuse to entertain any late submissions proffered by petitioner (see 11 NYCRR 65-4.2 [b] [3]; Matter of Mercury Cas. Co. v Healthmakers Med. Group, P.C., 67 AD3d 1017 [2d Dept 2009]). Concur—Mazzarelli, J.P., Sweeny, Richter, Manzanet-Daniels and Feinman, JJ.

Matter of DTG Operations, Inc. v Travelers Indem. Co. (2016 NY Slip Op 08967)

Reported in New York Official Reports at Matter of DTG Operations, Inc. v Travelers Indem. Co. (2016 NY Slip Op 08967)

Matter of DTG Operations, Inc. v Travelers Indem. Co.
2016 NY Slip Op 08967 [145 AD3d 646]
December 29, 2016
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, February 1, 2017


[*1]
 In the Matter of DTG Operations, Inc., Doing Business as Dollar Rent A Car, Appellant,
v
The Travelers Indemnity Co., as Subrogee of Genise Forbes, Respondent.

Rubin, Fiorella & Friedman LLP, New York (Joseph R. Federici of counsel), for appellant.

Armienti, DeBellis, Guglielmo & Rhoden, LLP, New York (Mohammad M. Haque of counsel), for respondent.

Order and judgment (one paper), Supreme Court, New York County (Joan B. Lobis, J.), entered July 14, 2015, denying the petition to vacate an arbitration award granting respondent $42,591.14 in no-fault benefits, unanimously affirmed, without costs.

Petitioner’s insured was involved in a motor vehicle accident with another vehicle driven by a nonparty who was insured under a policy issued by respondent. Respondent paid personal injury protection benefits to its insured, and then sought “loss transfer” reimbursement from petitioner pursuant to Insurance Law § 5105, under the mandatory arbitration procedure. Accordingly, this matter involves compulsory arbitration, and the award will be upheld so long as it comports with CPLR 7511 and is not arbitrary and capricious (Matter of Motor Veh. Acc. Indem. Corp. v Aetna Cas. & Sur. Co., 89 NY2d 214, 223 [1996]; Matter of Emerald Claims Mgt. for Ullico Cas. Ins. Co. v A. Cent. Ins. Co., 121 AD3d 481, 482 [1st Dept 2014]).

There is no basis for vacating the award under CPLR 7511 (b), and the award is not arbitrary and capricious. An evidentiary basis exists in the record to support a finding that respondent had demonstrated a causal relationship between the accident and the medical treatments for which it paid (Matter of American Tr. Ins. Co. v Acceptance Indem. Ins. Co., 2009 NY Slip Op 33169[U] [Sup Ct, Nassau County 2009]). Respondent “responded in writing to the causation argument” (emphasis omitted), stating that the applicant passenger, who was injured while riding in an Access-A-Ride vehicle insured by respondent, was disabled prior to this loss, that the loss worsened any prior condition, that it takes a disabled person much longer to recover from said injuries, and that a disabled person therefore requires more treatment. Unlike American Transit, there were no allegations of fraud here. If petitioner still had reservations regarding the amount paid, it could have requested further proof (see Matter of Progressive Northeastern Ins. Co. [New York State Ins. Fund], 56 AD3d 1111, 1114 [3d Dept 2008], lv denied 12 NY3d 713 [2009]). Concur—Mazzarelli, J.P., Sweeny, Richter, Manzanet-Daniels and Feinman, JJ.

Metropolitan Diagnostic Med. Care, P.C. v Erie Ins. Co. of N.Y. (2016 NY Slip Op 51815(U))

Reported in New York Official Reports at Metropolitan Diagnostic Med. Care, P.C. v Erie Ins. Co. of N.Y. (2016 NY Slip Op 51815(U))

[*1]
Metropolitan Diagnostic Med. Care, P.C. v Erie Ins. Co. of N.Y.
2016 NY Slip Op 51815(U) [54 Misc 3d 129(A)]
Decided on December 16, 2016
Appellate Term, Second Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and will not be published in the printed Official Reports.

Decided on December 16, 2016

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


PRESENT: : PESCE, P.J., WESTON and ALIOTTA, JJ.
2015-606 K C
Metropolitan Diagnostic Medical Care, P.C., as Assignee of Elan Wolkowitz, Respondent,

against

Erie Insurance Company of New York, Appellant.

Appeal from a judgment of the Civil Court of the City of New York, Kings County (Carolyn E. Wade, J.), entered August 5, 2014. The judgment, after a nonjury trial, awarded plaintiff the principal sum of $1,839.34.

ORDERED that the judgment is affirmed, with $25 costs.

At a nonjury trial of this action by a provider to recover assigned first-party no-fault benefits, the sole issue was the medical necessity of the MRIs of plaintiff’s assignor’s cervical and thoracic spines. The only witness was defendant’s doctor, a board-certified orthopedic surgeon with 30 years of experience, who also “write[s] papers, and give[s] lectures.” He testified that he was the doctor who had prepared the peer review reports concerning the two MRIs at issue in this action and found that the MRIs were not medically necessary. The peer review reports were admitted into evidence, over plaintiff’s objection, but the underlying medical records were not admitted into evidence. At the close of the doctor’s testimony, each side moved for a directed verdict. The Civil Court, finding that defendant’s medical witness was not qualified as an expert and, in any event, that the witness’s testimony was not credible, awarded judgment in favor of plaintiff in the principal sum of $1,839.34.

The fact that defendant’s witness was an orthopedic surgeon and the MRIs at issue were prescribed by a doctor whose specialty is physical medicine and rehabilitation goes to the weight to be given to the testimony and not, contrary to the Civil Court’s determination, to the witness’s competency to testify as an expert (see Gordon v Tishman Constr. Corp., 264 AD2d 499, 502 [1999]; Smith v City of New York, 238 AD2d 500, 500-501 [1997]; Fine Healing Acupuncture, P.C. v Country-Wide Ins. Co., 33 Misc 3d 55, 56 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2011]). However, we find no basis to disturb the Civil Court’s finding that the witness’s testimony was not credible.

Accordingly, the judgment is affirmed.

Pesce, P.J., Weston and Aliotta, JJ., concur.


Decision Date: December 16, 2016
JCC Med., P.C. v Infinity Group (2016 NY Slip Op 26439)

Reported in New York Official Reports at JCC Med., P.C. v Infinity Group (2016 NY Slip Op 26439)

JCC Med., P.C. v Infinity Group
2016 NY Slip Op 26439 [58 Misc 3d 53]
Accepted for Miscellaneous Reports Publication
Supreme Court, Appellate Term, Second Department, 2d, 11th and 13th Judicial Districts
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, February 14, 2018


[*1]
JCC Medical, P.C., as Assignee of Alou Ba, Appellant,
v
Infinity Group, Respondent.

Supreme Court, Appellate Term, Second Department, 2d, 11th and 13th Judicial Districts, December 16, 2016

APPEARANCES OF COUNSEL

The Rybak Firm, PLLC, Brooklyn (Damin J. Toell of counsel), for appellant.

Freiberg, Peck & Kang, LLP, Armonk (Yilo J. Kang of counsel), for respondent.

{**58 Misc 3d at 54} OPINION OF THE COURT
Memorandum.

Ordered that the order is reversed, without costs, and defendant’s motion for summary judgment dismissing the complaint is denied.

In this action by a provider to recover assigned first-party no-fault benefits, defendant moved for summary judgment dismissing the complaint on the ground that, upon the application of Georgia law, the automobile insurance policy had been rescinded ab initio, and, thus, there was no coverage for the July 18, 2011 accident in question. By order entered June 18, 2014, the Civil Court granted defendant’s motion.

It is uncontroverted that defendant had issued a Georgia automobile insurance policy to the brother of plaintiff’s assignor, “effective from August 28, 2010 through August 28, 2011,” who had made various representations to defendant in his insurance application, including that he resided in Georgia, that the insured vehicle was garaged in Georgia, and that the assignor was an adult who resided in his Georgia household and also drove the insured vehicle. On July 18, 2011, the assignor was involved in an automobile accident while driving the insured vehicle in Brooklyn, NY. In support of its motion for summary judgment dismissing the complaint, defendant argued, among other things, that there was a conflict between the laws of Georgia and New York regarding the retroactive rescission of automobile insurance policies, that Georgia law controlled herein, and that, pursuant to Georgia Code Annotated § 33-24-7, the Georgia automobile insurance policy in question had been retroactively rescinded after defendant had discovered that the assignor, in fact, lived in Brooklyn, NY and garaged the insured vehicle on the street in Brooklyn.

Upon a review of the record, we find that defendant failed to show that there is a conflict between the laws of Georgia and New York with respect to the retroactive rescission of an automobile insurance policy which has been issued to a natural person for a private passenger vehicle, as both states prohibit{**58 Misc 3d at 55} the retroactive rescission of such a policy (see Vehicle and Traffic Law § 313; Matter of Government Empls. Ins. Co. v Nichols, 8 AD3d 564 [2004]; Matter of Eagle Ins. Co. v Singletary, 279 AD2d 56, 58 [2000]; see also Georgia Code Ann §§ 33-24-44, 33-24-45; Sentry Indem. Co. v Sharif, 248 Ga 395, 282 SE2d 907 [1981]; Liberty Ins. Corp. v [*2]Ferguson, 263 Ga App 714, 589 SE2d 290 [2003]; FCCI Ins. Group v Rodgers Metal Craft, Inc., 2008 WL 2951992, *7-8, 2008 US Dist LEXIS 57649, *21-23 [MD Ga, July 28, 2008, No. 4:06-CV-107 (CDL)]; cf. T.J. Blake Trucking, Inc. v Alea London, Ltd., 284 Ga App 384, 643 SE2d 762 [2007] [upholding a retroactive rescission pursuant to Georgia Code Annotated § 33-24-7 where the insurance policy was issued to a corporation, not “a natural person”]). Under Georgia law, automobile insurance policies that are issued to “a natural person” for a “private passenger” vehicle cannot be retroactively rescinded pursuant to Georgia Code Annotated § 33-24-7, but may be prospectively cancelled pursuant to the procedure set forth in Georgia Code Annotated § 33-24-45 “which specifically regulates the cancellation of automobile insurance policies” (Liberty Ins. Corp. v Ferguson, 263 Ga App at 715-716, 589 SE2d at 291; see also Sentry Indem. Co. v Sharif, 248 Ga 395, 282 SE2d 907 [1981];[FN*] FCCI Ins. Group v Rodgers Metal Craft, Inc., 2008 WL 2951992,{**58 Misc 3d at 7} *7-8, 2008 US Dist LEXIS 57649, *21-23), and does not allow retroactive rescission (see Georgia Code Ann §§ 33-24-44 [d]; 33-24-45 [b]).

In view of the foregoing, defendant failed to show that the automobile insurance policy was retroactively rescinded and, thus, that there was no coverage for the July 18, 2011 accident.

Accordingly, the order is reversed and defendant’s motion for summary judgment dismissing the complaint is denied.

Pesce, P.J., Solomon and Elliot, JJ., concur.



Footnotes


Footnote *:It is noted that Georgia Code Annotated § 33-24-7 was formerly Georgia Code Annotated § 56-2409, and Georgia Code Annotated § 33-24-45 was formerly Georgia Code Annotated § 56-2430.1. In Sentry (248 Ga at 396, 282 SE2d at 908), which was decided before the Georgia No-Fault Act was repealed in October 1991, the Georgia Supreme Court held “that Code Ann. § 56-2409 does not apply to insurance policies covered by Code Ann. § 56-2430.1.”Active Care Med. Supply Corp. v American Commerce Ins. Co. (2016 NY Slip Op 51813(U))

Reported in New York Official Reports at Active Care Med. Supply Corp. v American Commerce Ins. Co. (2016 NY Slip Op 51813(U))

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

Active Care Medical Supply Corp., as Assignee of Gabriel Sanford, Respondent,

against

American Commerce Insurance Company, Appellant.

Appeal from an order of the Civil Court of the City of New York, Kings County (Steven Z. Mostofsky, J.), entered February 25, 2015. The order denied defendant’s motion for summary judgment dismissing the complaint.

ORDERED that the order is reversed, with $30 costs, and defendant’s motion for summary judgment dismissing the complaint is granted.

In this action to recover assigned first-party no-fault benefits, plaintiff seeks to recover for supplies it provided to its assignor for injuries he had sustained in a motor vehicle accident on February 27, 2012, to which claim defendant assigned claim number 1126518. Prior to the commencement of this action, defendant instituted a declaratory judgment action in the Supreme Court, New York County, against plaintiff’s assignor and various medical providers, including plaintiff herein. In an order dated April 25, 2014, the Supreme Court granted, on default, the motion therein for a declaratory judgment, which order stated, among other things, “that, for the purpose of claims submitted by GABRIEL SANFORD, ACTIVE CARE MEDICAL SUPPLY CORP. . . . , defendant GABRIEL SANFORD is not an eligible injured person entitled to no-fault benefits under AMERICAN COMMERCE INSURANCE COMPANY insurance policy ACPA-000653448, Claim No.: 1126518, and [American Commerce Insurance Company] is not obligated to pay for claims seeking no-fault benefits for services or goods provided to GABRIEL SANFORD under this claim number.”

In July 2014, defendant, among other things, moved in the Civil Court for summary judgment dismissing the complaint on the ground that the April 25, 2014 Supreme Court order in the declaratory judgment action barred the instant action pursuant to the doctrines of res judicata and collateral estoppel. By order entered February 25, 2015, the Civil Court denied defendant’s motion without prejudice to renewal upon proper papers. The court found that it could not consider the Supreme Court declaratory judgment order annexed to the moving papers because defendant had not included a notice of entry for that order.

Contrary to the determination of the Civil Court, it should have reviewed and considered the Supreme Court declaratory judgment order even though defendant did not provide a notice of entry for it “in view of the binding and conclusive effect of the order” (Great Health Care Chiropractic, P.C. v American Tr. Ins. Co., 44 Misc 3d 143[A], 2014 NY Slip Op 51324[U], *1 [*2][App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2014]; see All Boro Psychological Servs., P.C. v Travelers Prop. Cas. Co. of Am., 44 Misc 3d 48 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2014]). A review of the record establishes that the instant action is barred under the doctrine of res judicata by virtue of the Supreme Court order dated April 25, 2014 (see Ava Acupuncture, P.C. v NY Cent. Mut. Fire Ins. Co., 34 Misc 3d 149[A], 2012 NY Slip Op 50233[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2012]). To hold otherwise could result in a judgment in this action which would destroy or impair rights established by the order issued by the Supreme Court in the declaratory judgment action (see Schuylkill Fuel Corp. v Nieberg Realty Corp., 250 NY 304, 306-307 [1929]; Ava Acupuncture, P.C. v NY Cent. Mut. Fire Ins. Co., 34 Misc 3d 149[A], 2012 NY Slip Op 50233[U]). Moreover, the Supreme Court’s order is a conclusive final determination notwithstanding that it was entered on default, and res judicata applies to an order or judgment taken by default which has not been vacated (see Lazides v P & G Enters., 58 AD3d 607 [2009]; Matter of Allstate Ins. Co. v Williams, 29 AD3d 688, 690 [2006]; Matter of Eagle Ins. Co. v Facey, 272 AD2d 399 [2000]; Ava Acupuncture, P.C. v NY Cent. Mut. Fire Ins. Co., 34 Misc 3d 149[A], 2012 NY Slip Op 50233[U]).

Accordingly, the order is reversed and defendant’s motion for summary judgment dismissing the complaint is granted.

Aliotta, J.P., Pesce and Solomon, JJ., concur.


Decision Date: December 15, 2016