May 16, 2025
GC Chiropractic, P.C. v Allstate Ins. Co. (2025 NY Slip Op 50835(U))
https://www.beynensonlaw.com/case-law/gc-chiropractic-p-c-v-allstate-ins-co-2025-ny-slip-op50835u/
- Decided
- May 16, 2025
- Citation
- 2025 NY Slip Op 50835(U) · 86 Misc 3d 127(A)
- Posture
- Other motion
- Outcome
- Provider prevailed
- Legal questions
- When no-fault interest is tolled (see the maps)
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.
Reported in New York Official Reports at GC Chiropractic, P.C. v Allstate Ins. Co. (2025 NY Slip Op 50835(U))
[*1]| GC Chiropractic, P.C. v Allstate Ins. Co. |
| 2025 NY Slip Op 50835(U) [86 Misc 3d 127(A)] |
| Decided on May 16, 2025 |
| 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| This opinion is uncorrected and will not be published in the printed Official Reports.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 May 16, 2025
PRESENT: : CHEREÉ A. BUGGS, J.P., WAVNY TOUSSAINT, JOANNE D. QUIÑONES, JJ
2023-1069 K C
against
Allstate Ins. Co., Respondent.
Gary Tsirelman, P.C. (David M. Gottlieb of counsel), for appellant. Peter C. Merani, P.C. (Samuel A. Kamara and Michael Zeleznock of counsel), for respondent.
Appeal from an amended order of the Civil Court of the City of New York, Kings County (Jill R. Epstein, J.), dated May 11, 2023. The amended order, insofar as appealed from, granted the branch of defendant’s motion seeking an order pursuant to CPLR 2606, 2607 and 8010 directing plaintiff to move to recover from the Department of Finance the undertaking deposited by defendant, and, sua sponte, directed plaintiff “to provide Defendant with [a] Satisfaction of Judgment upon receipt of full payment.”
ORDERED that, on the court’s own motion, so much of the notice of appeal as is from so much of the order as, sua sponte, directed plaintiff to provide defendant with a satisfaction of judgment upon plaintiff’s receipt of full payment should be deemed to be an application for leave to appeal from that portion of the order, and leave to appeal is granted (see CCA 1702 [c]); and it is further,
ORDERED that the amended order, insofar as appealed from, is reversed, with $30 costs, the branch of defendant’s motion seeking an order pursuant to CPLR 2606, 2607 and 8010 directing plaintiff to move to recover from the Department of Finance the undertaking deposited by defendant is denied, and so much of the order as, sua sponte, directed plaintiff to provide defendant with a satisfaction of judgment upon plaintiff’s receipt of full payment is vacated.
In this action by a provider to recover assigned first-party no-fault benefits, a default judgment was entered in plaintiff’s favor on July 27, 2016 for the total sum of $3,623.62. On [*2]December 4, 2017, defendant’s motion seeking to vacate the default judgment was denied. Defendant appealed to this court from the December 4, 2017 order and, on January 25, 2018, defendant deposited the sum of $3,623.62 with the New York City Department of Finance (DOF) in connection with the appeal. By decision and order dated November 29, 2019, this court affirmed the order denying defendant’s motion to vacate the default judgment (GC Chiropractic, P.C. v Allstate Ins. Co., 65 Misc 3d 156[A], 2019 NY Slip Op 51954[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2019]). Defendant subsequently moved for, among other things, an order pursuant to CPLR 2606, 2607 and 8010 directing plaintiff to move to recover from the DOF the undertaking deposited by defendant. After plaintiff opposed the motion, the Civil Court (Jill R. Epstein, J.), in an amended order dated May 11, 2023, “[p]ursuant to CPLR 2606, 2607 and 8010 . . . direct[ed] plaintiff to proceed to recover the undertaking from the Department of Finance and to provide Defendant with [a] Satisfaction of Judgment upon receipt of full payment.”
While no appeal as of right lies from the sua sponte portion of the order directing plaintiff to provide defendant with a satisfaction of judgment upon plaintiff’s receipt of full payment, we deem the notice of appeal to be an application for leave to appeal from that portion of the order and grant plaintiff’s application (see CCA 1702 [c]).
Defendant’s contentions that the undertaking it deposited on January 25, 2018 tolled the accrual of interest, that the amount of the undertaking is sufficient to satisfy defendant’s debt, and that it is plaintiff’s burden to move to recover the undertaking lack merit. The deposit of money pursuant to CPLR 5519 in order to obtain a stay of execution of the judgment pending appeal does not toll the accrual of interest (see Purpura v Purpura, 261 AD2d 595; 597 [1999]; see also Wiederhorn v Merkin, 106 AD3d 416 [2013]; Matter of Matra Bldg. Corp. v Kucker, 19 AD3d 496 [2005]). We note that since no-fault interest continues to accrue until the judgment is satisfied (see Matter of Matra Bldg. Corp., 19 AD3d 496; see generally 11 NYCRR 65-3.9 [a]; Matter of B.Z. Chiropractic, P.C. v Allstate Ins. Co., 197 AD3d 144 [2021]), the amount of the undertaking alone will be insufficient to satisfy the judgment.
Accordingly, the amended order, insofar as appealed from, is reversed, and the branch of defendant’s motion seeking an order pursuant to CPLR 2606, 2607 and 8010 directing plaintiff to move to recover from the Department of Finance the undertaking deposited by defendant is denied and so much of the order as, sua sponte, directed plaintiff to provide defendant with a satisfaction of judgment upon plaintiff’s receipt of full payment is vacated.
BUGGS, J.P., TOUSSAINT and QUIÑONES, JJ., concur.
ENTER:
Paul Kenny
Chief Clerk
Decision Date: May 16, 2025
Legal questions
A question of no-fault law this decision rules on, from our Legal Questions pages. Bars count the decisions on the question by year and court, coloured by category; circles are this decision and the decisions on the question it cites or that cite it. Point at a bar or circle for details. The categories and summaries are Beynenson Law’s classification, made by a language model and checked by a second reading.
When is 2% no-fault interest tolled because the claimant delayed suing, arbitrating, prosecuting or collecting?
This decision: Interest runs without suspension: the toll was not triggered or the delay was not unreasonable or not the claimant's
Rejected the insurer's claim that its deposit of the judgment amount with the Department of Finance to stay execution pending appeal stopped interest, holding that no-fault interest keeps accruing until the judgment is satisfied, so the deposit could not satisfy it.
Of the 73 decisions on this question in the Second Department courts and the Court of Appeals, 30 (this one included) are in the same category.
Cited in this decision
- GC Chiropractic, P.C. v Allstate Ins. Co. (2019 NY Slip Op 51954(U))The insurer failed to establish a reasonable excuse for its default, and the process server's affidavit showed proper service.
- Matter of B.Z. Chiropractic, P.C. v Allstate Ins. Co. (2021 NY Slip Op 04484)Dicta do not have preclusive effect under res judicata, collateral estoppel or law of the case.
Similar decisions
- B.Z. Chiropractic, P.C. v Allstate Ins. Co. (2017 NY Slip Op 51091(U))Postjudgment interest on a no-fault judgment is calculated under CPLR 5004, rather than at two percent per month under 11 NYCRR 65-3.9 (a).
- 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.
- Berenblit v Aetna Cas. & Sur. Co. (2019 NY Slip Op 50505(U))The provider's enforcement delay did not justify tolling postjudgment interest because it had not caused the insurer's payment delay.
- Biotech Surgical Supply, Inc. v Country Wide Ins. Co. (2019 NY Slip Op 52143(U))The provider's appeal from a sua sponte stay of no-fault interest was dismissed because the ruling was not appealable as of right.
- Trans Med. Supply, Inc. v Country Wide Ins. Co. (2020 NY Slip Op 20364)The provider's appeal from a sua sponte stay of no-fault interest was dismissed because that ruling was not appealable as of right.