March 8, 2019

Pain Mgt. Ctr. of N.J., P.C. v Travelers Prop. & Cas. Ins. Co. (2019 NY Slip Op 50607(U))

Headnote

The relevant facts of the case included a provider seeking to recover first-party no-fault benefits for services rendered to an assignor. The defendant sought to amend its answer to assert the affirmative defense of collateral estoppel and for summary judgment dismissing the complaint, based on an arbitrator's decision in April 2014 that found the plaintiff was not eligible to recover benefits because it was not a licensed professional medical corporation in the State of New York. The main issues decided were whether the defendant should be granted leave to amend its answer and whether summary judgment should be granted based on the doctrine of collateral estoppel. The court ultimately affirmed the order, determining that the plaintiff had not demonstrated prejudice or surprise as a result of the proposed amendment to the answer and had presented no basis to disturb the branch of defendant's motion seeking summary judgment dismissing the complaint based on collateral estoppel. The holding of the case was that the defendant was granted leave to amend its answer and summary judgment was granted based on the doctrine of collateral estoppel, resulting in the affirmation of the order by the court.

Reported in New York Official Reports at Pain Mgt. Ctr. of N.J., P.C. v Travelers Prop. & Cas. Ins. Co. (2019 NY Slip Op 50607(U))

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

Pain Management Center of New Jersey, P.C., as Assignee of Rodriguez Ramon, Appellant,

against

Travelers Property & Casualty Insurance Company, Respondent.

Law Office of Melissa Betancourt, P.C. (Melissa Betancourt of counsel), for appellant. Law Office of Aloy O. Ibuzor (Michael L. Rappaport of counsel), for respondent.

Appeal from an order of the Civil Court of the City of New York, Kings County (Katherine A. Levine, J.), entered February 18, 2016. The order granted defendant’s motion for leave to amend its answer and, upon amendment, 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 for services it had rendered to its assignor, defendant moved for leave to amend its answer to assert the affirmative defense of collateral estoppel and, upon amendment, for summary judgment dismissing the complaint. By order dated January 7, 2016, the Civil Court granted defendant’s motion.

In support of the branch of defendant’s motion seeking leave to amend its answer to assert the affirmative defense of collateral estoppel, defendant argued that an April 2014 arbitrator’s decision had found that plaintiff could not recover no-fault benefits because it was not a licensed professional medical corporation in the State of New York. Leave to amend a pleading “shall be freely given” absent prejudice or surprise resulting from the delay (CPLR 3025 [b]). Mere lateness is not a barrier to an amendment; rather, significant prejudice must be demonstrated to justify the denial of an application for an amendment (see Edenwald Contr. Co. v City of New York, 60 NY2d 957, 959 [1983]). Contrary to plaintiff’s arguments, plaintiff failed to demonstrate prejudice or surprise as a result of the proposed amendment to the answer (see McCaskey, Davies & Assocs. v New York City Health & Hosps. Corp., 59 NY2d 755 [1983]), or to establish that defendant had waived its right to assert the defense. Consequently, the Civil Court properly granted the branch of defendant’s motion seeking leave to amend its answer.

With respect to the branch of defendant’s motion seeking summary judgment based on the [*2]doctrine of collateral estoppel, plaintiff’s argument on appeal as to why the doctrine of collateral estoppel does not apply in the case at bar is, essentially, that it cannot be determined if the issues to be litigated were substantially similar because defendant failed to include in its motion the evidence and documents submitted by the parties at the arbitration. In view of the fact that plaintiff does not point to any ambiguity in the arbitrator’s decision, or any distinction between the facts of this case and those underlying the arbitration, or any other meritorious argument, plaintiff has presented no basis to disturb so much of the order of the Civil Court as, upon amendment of the answer, granted the branch of defendant’s motion seeking summary judgment dismissing the complaint.

Accordingly, the order is affirmed.

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


ENTER:
Paul Kenny
Chief Clerk
Decision Date: March 08, 2019