April 12, 2019

CPM Med Supply, Inc. v State Farm Fire & Cas. Ins. Co. (2019 NY Slip Op 50576(U))

Headnote

The court considered the fact that CPM Med Supply, Inc. failed to provide verification requested by State Farm Fire and Casualty Insurance Company. The main issue was whether CPM Med Supply, Inc. was required to respond to the verification requests and if its failure to do so justified the dismissal of its complaint seeking to recover assigned first-party no-fault benefits. The court held that CPM Med Supply, Inc. was required to respond to the verification requests and failed to demonstrate a basis to disturb the order dismissing the complaint. The court affirmed with costs and noted that while defendant was entitled to dismissal of plaintiff's complaint with prejudice, as defendant did not cross-appeal, the order was affirmed.

Reported in New York Official Reports at CPM Med Supply, Inc. v State Farm Fire & Cas. Ins. Co. (2019 NY Slip Op 50576(U))

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

CPM Med Supply, Inc., as Assignee of Carlos Espinoza-Calle, Appellant,

against

State Farm Fire and Casualty Insurance Company, Respondent.

Fuld & Karp, P.C. (David Karp of counsel), for appellant. Richard T. Lau & Associates (Linda Filosa and Arthur Kontaxis of counsel), for respondent.

Appeal from an order of the Civil Court of the City of New York, Kings County (Richard J. Montelione, J.), entered August 31, 2016. The order granted defendant’s motion for summary judgment dismissing the complaint as premature.

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 as premature, as plaintiff had failed to provide verification which defendant had requested.

Contrary to plaintiff’s argument, it was required to respond to defendant’s verification requests. As plaintiff did not respond to defendant’s verification requests with respect to plaintiff’s claim for the sum of $1,989.85, plaintiff failed to demonstrate a basis to disturb so much of the order as dismissed the complaint insofar as it sought to recover upon the $1,989.85 claim.

While plaintiff did respond in writing to defendant’s verification requests pertaining to the claim for $1,785, plaintiff neither provided the invoices requested by defendant nor stated that it was not in possession or control of those invoices. Rather, plaintiff merely set forth its opinion that the items requested were “not needed,” based upon its own interpretation of how the rate of reimbursement should be calculated. This is not a “reasonable justification for the failure to comply” with a verification request (11 NYCRR 65-3.8 [b] [3]), or a sufficient response (see Village Med. Supply, Inc. v Travelers Prop. Cas. Ins. Co., 61 Misc 3d 126[A], 2018 NY Slip Op 51311[U] [App Term, 1st Dept 2018]; D & R Med. Supply v American Tr. Ins. Co., 32 Misc 3d 144[A], 2011 NY Slip Op 51727[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2011]; Urban Radiology, P.C. v Tri-State Consumer Ins. Co., 27 Misc 3d 140[A], 2010 NY Slip Op 50987[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2010]; cf. Mount Sinai Hosp. v Auto One Ins. Co., 121 AD3d 869 [2014]).

We note that while the Civil Court dismissed the complaint as premature, the claimed services were rendered after April 1, 2013, and defendant properly denied the claims at issue on the ground that plaintiff had failed to provide the requested verification within 120 days of the initial verification request in this action (see 11 NYCRR 65-3.5 [o]; 65-3.8 [b] [3]). Therefore, defendant was entitled to dismissal of plaintiff’s complaint with prejudice, but as defendant has not cross-appealed, the order is affirmed.

PESCE, P.J., ALIOTTA and ELLIOT, JJ., concur.



ENTER:
Paul Kenny
Chief Clerk
Decision Date: April 12, 2019