Uniondale, NY, June 17, 2011
Rivkin Radler LLP led the effort which today secured a major victory for the New York automobile insurance industry, after the Supreme Court, Nassau County dismissed a laundry-list of claims against a broad range of insurers by a No-Fault healthcare provider which contended that the insurers’ verification requests were improper. In MDJ Medical, P.C. v. Hertz Rent-A-Car, et al., Index No. 775-2011 (Sup. Ct. Nassau County), MDJ Medical, P.C. (“MDJ”) alleged that the insurers violated New York law by requesting information and examinations under oath regarding MDJ’s corporate ownership and structure as well as its billing and treatment practices before deciding whether to pay its claims.
MDJ contended that it was not obligated to produce information regarding its corporate structure or its billing and treatment practices and ignored the insurers’ requests for examinations under oath. MDJ sought an injunction against the insurers’ verification requests as well as damages in excess of Five Million Dollars ($5,000,000.00) contending that the insurers’ verification requests were driving it out of business.
Barry Levy, Esq., Pia Riverso, Esq., and Max Gershenoff, Esq. of Rivkin Radler – who represented GEICO and its affiliates, Allstate Insurance Company, and American Transit Insurance Company – led a multi-firm effort that resulted in today’s dismissal of each and every one of MDJ’s claims against the insurers. Significantly, in dismissing MDJ’s claims, the Court specifically noted that, “there is little question that an assignee such as the plaintiff may not simply refuse to cooperate or communicate with an insurance carrier in response to a request” for an examination under oath.
“Today’s decision represents a major step in the New York Automobile Insurance Industry’s efforts to ensure that healthcare providers are paid only in appropriate circumstances,” said Mr. Levy. “Justice Warshavsky’s well-reasoned opinion makes clear that No-Fault providers cannot avoid their obligation to appear for an examination under oath in response to an insurer’s legitimate request. If a healthcare provider does not meet this obligation, then it is not entitled to collect No-Fault benefits, period.”
Rivkin Radler LLP is a national law firm with offices on Long Island, in New York City and New Jersey. For more information on the firm, visit www.rivkinradler.com