December 13, 2019

Health Value Med., P.C. v Country Wide Ins. Co. (2019 NY Slip Op 52036(U))

Headnote

The court considered a case where Health Value Medical, P.C. was seeking to recover no-fault benefits from Country Wide Insurance Company for claims submitted in 2000, arising from an accident in 1999. The case was settled in 2008, but the defendant did not pay the settlement amount, leading to a judgment being entered in 2017 awarding statutory no-fault interest at a simple rate. Health Value Medical, P.C. moved to have the interest recalculated at a compound rate according to pre-2002 regulations, and the court denied the motion. The main issue was whether the interest should be recalculated at a compound rate based on the former regulations. The holding of the case was that plaintiff's motion to recalculate the interest from a simple rate to a compound rate was granted, as the claims in question were governed by the former regulations providing for compound interest.

Reported in New York Official Reports at Health Value Med., P.C. v Country Wide Ins. Co. (2019 NY Slip Op 52036(U))

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

Health Value Medical, P.C., as Assignee of Archie Lee, Appellant,
against
Country Wide Insurance Company, Respondent.

Glinkenhouse Queen (Alan Queen and Steven J. Green of counsel), for appellant. Jaffe & Koumourdas, LLP (Jean H. Kang of counsel), for respondent.

Appeal from an order of the Civil Court of the City of New York, Queens County (Terrence C. O’Connor, J.), entered February 15, 2018. The order, insofar as appealed from, denied plaintiff’s motion to recalculate, from a simple rate to a compound rate, an award of statutory no-fault interest in a judgment of that court entered February 9, 2017.

ORDERED that the order, insofar as appealed from, is reversed, with $30 costs, and plaintiff’s motion to recalculate, from a simple rate to a compound rate, an award of statutory no-fault interest in a judgment of that court entered February 9, 2017 is granted.

This action by a provider to recover assigned first-party no-fault benefits for claims submitted to defendant in March 2000, arising from an accident in 1999, was settled in 2008. Defendant did not pay the settlement amount, and a judgment was subsequently entered on February 9, 2017 (see CPLR 5003-a) awarding statutory no-fault interest at a simple, not compound, rate (see 11 NYCRR 65-3.9 [a], effective April 5, 2002). Plaintiff moved, pursuant to CPLR 5019 (a), to have the interest recalculated pursuant to the pre-2002 regulations, which required no-fault interest to be calculated at a compound rate (see former 11 NYCRR 65.15 [h] [1]). Plaintiff appeals from so much of an order of the Civil Court as denied its motion.

Plaintiff correctly argues that the claims involved herein are all governed by the former [*2]regulations providing for compound interest (see Belt Parkway Imaging, P.C. v State Wide Ins. Co., 30 Misc 3d 127[A], 2010 NY Slip Op 52229[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2010]) and that its motion should, therefore, have been granted.

Accordingly, the order, insofar as appealed from, is reversed and plaintiff’s motion to recalculate, from a simple rate to a compound rate, an award of statutory no-fault interest in a judgment of that court entered February 9, 2017 is granted.

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

ENTER:

Paul Kenny

Chief Clerk
Decision Date: December 13, 2019