June 20, 2025
Medtech Med. Supply, Inc. v Liberty Mut. Ins. Co. (2025 NY Slip Op 51150(U))
https://www.beynensonlaw.com/case-law/medtech-med-supply-inc-v-liberty-mut-ins-co-2025-ny-slip-op-51150u/
- Decided
- June 20, 2025
- Citation
- 2025 NY Slip Op 51150(U)
- Posture
- Default or vacatur
- Outcome
- Provider prevailed
- Issues
- Defaults and vacatur
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 Medtech Med. Supply, Inc. v Liberty Mut. Ins. Co. (2025 NY Slip Op 51150(U))
[*1]| Medtech Med. Supply, Inc. v Liberty Mut. Ins. Co. |
| 2025 NY Slip Op 51150(U) |
| Decided on June 20, 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| This opinion is uncorrected and will not be published in the printed Official Reports.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 June 20, 2025
PRESENT: : MARINA CORA MUNDY, J.P., CHEREÉ A. BUGGS, JOANNE D. QUIÑONES, JJ
2024-480 Q C
against
Liberty Mutual Insurance Company, Appellant.
Martyn, Smith, Murray & Yong (Thomas M. Martyn of counsel), for appellant. Glinkenhouse Queen, Esqs. (Alan Queen of counsel), for respondent.
Appeal from an order of the Civil Court of the City of New York, Queens County (Ira R. Greenberg, J.), dated April 12, 2024. The order, insofar as appealed from as limited by the brief, denied the branch of defendant’s motion seeking to vacate a judgment of that court entered September 14, 2023.
ORDERED that the order, insofar as appealed from, is affirmed, with $25 costs.
Plaintiff commenced this action in 2000 to recover assigned first-party no-fault benefits. The parties agreed to settle the matter, and plaintiff’s counsel tendered to defendant’s counsel a letter dated March 30, 2006, to which a general release and a stipulation of discontinuance were appended. After plaintiff applied to the clerk for the entry of a judgment pursuant to CPLR 5003-a (e) in June 2023, predicated upon the alleged failure of defendant to make prompt payment (see CPLR 5003-a [a]), a judgment was entered against defendant on September 14, 2023.
In October 2023, defendant moved to, among other things, vacate the judgment. One of defendant’s arguments in support of its motion was that plaintiff failed to satisfy its CPLR 5003-a (a) obligations before entering judgment. Plaintiff opposed the motion, to which defendant replied. As limited by its brief, defendant appeals from so much of an order of the Civil Court (Ira R. Greenberg, J.) dated April 12, 2024 as denied the branch of defendant’s motion seeking to vacate the judgment.
“The purpose of CPLR 5003-a is to encourage the prompt payment of damages in settled actions” (Pitt v New York City Hous. Auth., 106 AD3d 797, 797-798 [2013]). CPLR 5003-a (a) requires a settling defendant to “pay all sums due to any settling plaintiff within twenty-one days of tender, by the settling plaintiff to the settling defendant, of a duly executed release and a stipulation discontinuing action executed on behalf of the settling plaintiff” (see Orthotics & [*2]Professional Supply, Ltd. v Country-Wide Ins. Co., 77 Misc 3d 130[A], 2022 NY Slip Op 51221[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2022]). In the context of CPLR 5003-a (a), “tender . . . shall mean either to personally deliver or to mail, by registered or certified mail, return receipt requested” (CPLR 5003-a [g]; see J.D.T. v Chaimowitz, 218 AD3d 821, 823 [2023]; DJS Med. Supplies, Inc. v American Tr. Ins. Co., 21 Misc 3d 143[A], 2008 NY Slip Op 52456[U] [App Term, 2d Dept, 2d & 11th Jud Dists 2008]). “If the settling defendant fails to pay the sum due under the settlement agreement within 21 days of tender of [a duly executed release and a stipulation discontinuing action executed on behalf of the settling plaintiff], the statute authorizes the plaintiff to enter, without further notice, a judgment in the amount of the settlement, which is to include interest, costs, and disbursements” (Klee v Americas Best Bottling Co., Inc., 76 AD3d 544, 545 [2010]; see CPLR 5003-a [e]).
While defendant contends that the judgment was improperly entered because plaintiff failed prove on its application to the clerk for the entry of a judgment pursuant to CPLR 5003-a (e) that it tendered to defendant the executed release and stipulation of discontinuance by personal delivery or by registered or certified mail, return receipt requested (see CPLR 5003-a [a], [g]), it was defendant’s burden on its motion to vacate the judgment to show plaintiff’s noncompliance with CPLR 5003-a (see Medtech Med. Supply, Inc. v Country-Wide Ins. Co., 74 Misc 3d 137[A], 2022 NY Slip Op 50304[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2022]). However, defendant submitted no evidence to show that plaintiff failed to tender the requisite documents to defendant in accordance with CPLR 5003-a.
Accordingly, the order, insofar as appealed from, is affirmed.
MUNDY, J.P., BUGGS and QUIÑONES, JJ., concur.
ENTER:
Paul Kenny
Chief Clerk
Decision Date: June 20, 2025
Cited in this decision
A label shows how this decision treated the case it cites.
- Orthotics & Professional Supply, Ltd. v Country-Wide Ins. Co. (2022 NY Slip Op 51221(U))The provider's 17-year delay in seeking judgment on a summary judgment order required tolling statutory no-fault interest during that delay.
- DJS Med. Supplies, Inc. v American Tr. Ins. Co. (2008 NY Slip Op 52456(U))The provider failed to prove tender of a release and stipulation of discontinuance required to enforce its settlement under CPLR 5003-a. After settling its assigned no-fault action, the provider moved for leave to enter judgment and add interest, attorney fees and costs.
- Medtech Med. Supply, Inc. v Country-Wide Ins. Co. (2022 NY Slip Op 50304(U)) FollowedThe insurer failed to prove that the dissolved provider lacked capacity to enter judgment while winding up its affairs.
Cited by
- Elite Psychological Servs., P.C. v Country-Wide Ins. Co. (2026 NY Slip Op 50687(U))A settling insurer's 21-day payment obligation begins upon actual receipt of a duly executed release and stipulation of discontinuance mailed to it.
Similar decisions
- Rombom v Liberty Mut. Ins. Co. (2025 NY Slip Op 25040)An insurer's filing of a discontinuance without paying the settlement did not bar judgment under CPLR 5003-a (e).
- Medical Supply of NY Corp. v Berkshire Hathaway Homestate Ins. Co. (2025 NY Slip Op 50504(U))The insurer obtained default vacatur under CPLR 317 based on delayed actual notice and a potential workers' compensation defense.
- Arguelles, M.D., P.C. v AIG Natl. Ins. Co. (2025 NY Slip Op 51142(U))The provider's request for judgment under a settlement stipulation without an enforcement deadline was not time-barred.
- Biotech Surgical Supply, Inc. v Country Wide Ins. Co. (2024 NY Slip Op 50118(U))Statutory no-fault interest was improperly tolled because the insurer did not show that the provider prevented settlement payment.
- Advanced Recovery Equip. & Supplies, LLC v Global Liberty Ins. Co. (2020 NY Slip Op 51373(U))Factual disputes over medical necessity and timely claim submission precluded summary judgment and a trial limited to the fee schedule.