Prior DJ Action Entitles PIP Insurer To Dismissal of NY PIP Suit

Wave Med. Servs., P.C. v Farmers New Century Ins. Co., 2020 NY Slip Op 50555(U) (Appellate Term, Second Department)

In this action by a medical provider to recover assigned first-party no-fault benefits, plaintiff Wave Medical Services, P.C. moved for summary judgment and defendant Farmers New Century Insurance Co. cross-moved for summary judgment dismissing the complaint. In support of its cross motion, Farmers submitted an order that had been entered in a (New York) Supreme Court declaratory judgment action which granted a motion brought by Farmers seeking a default judgment against Wave. The order found specifically that Farmers was entitled to a default judgment on liability against Wave, but did not declare the rights of the parties. The Civil Court denied Wave’s motion for summary judgment and granted Farmers’ cross motion for summary judgment dismissing the complaint based upon the Supreme Court order. In response to Wave’s appeal, Farmers submitted a judgment that was entered in the Supreme Court which declared, among other things, that Farmers has no duty to pay any no-fault benefits to Wave in any current or future proceeding because Wave is ineligible to collect no-fault benefits pursuant to 11 NYCRR 65-3.16 (a) (12).

The Appellate Term wrote, A court “may in general take judicial notice of matters of public record.” In light of the Supreme Court’s declaration that Farmers has no obligation to pay no-fault benefits to Wave in any current proceeding, set forth in the Supreme Court judgment of which we take judicial notice, “we find that the Civil Court properly denied Wave’s motion for summary judgment and granted Farmers’ cross motion for summary judgment dismissing the complaint.”

Comment: Medical providers sometimes argue that Declaratory Judgment actions decided on their own default are not binding in subsequent PIP suits. This case, and others, dispel that notion.