Court Opinion

ID: 9916496
Source: CourtListenerOpinion
Date Created: 2024-01-10 01:08:26.034481+00
Date Added: 2024-06-11T13:25:31.772943
License: Public Domain

American Tr. Ins. Co. v Rutland Med., PC
               2024 NY Slip Op 30019(U)
                     January 2, 2024
           Supreme Court, New York County
        Docket Number: Index No. 650019/2023
                   Judge: Judy H. Kim
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
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                       publication.
                                                                                                                      INDEX NO. 650019/2023
  NYSCEF DOC. NO. 19                                                                                            RECEIVED NYSCEF: 01/02/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. JUDY H. KIM                                                 PART                          OSRCP
                                                                                       Justice
            ----------------------------------------------------------------- ----------------X   INDEX NO.          650019/2023
             AMERICAN TRANSIT INSURANCE COMPANY,
                                                                                                  MOTION DATE         03/28/2023
                                                         Petitioner,
                                                                                                  MOTION SEQ. NO.         001
                                                 - V -

             RUTLAND MEDICAL, PC,NNO DENISHA WALLS,                                                 DECISION + ORDER ON
                                                                                                          MOTION
                                                         Respondent.
            ------------------------------------------------------------------- --------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 001) 2, 9, 10, 11, 12, 13,
            14, 15, 16
            were read on this motion to                                      VACATE - DECISION/ORDER/JUDGMENT/AWARD.

                      Upon the foregoing papers, Petitioner's motion to vacate the Master Arbitration Award is

            denied for the reasons set forth below.

                      This action arises from a motor vehicle accident on June 27, 2018 in which Respondent's

            assignor, Denisha Walls, sustained injuries. Respondent sought first-party no-fault benefits

            reimbursement from Petitioner in the amount of $1,081.63 as reimbursement for medical treatment

            between August 1, 2017 through November 28, 2018, which claims were denied. These claims

            were submitted to arbitration and on July 22, 2022 Arbitrator Linda Filosa issued an award in favor

            of Respondent, which was affirmed by a Master Arbitrator Victor J. Hershdorfer on October 25,

            2022 (the "Award").

                      Petitioner now seeks to vacate the Award pursuant to CPLR §751 l(b )(l)(i) arguing that it

            was prejudiced by corruption, fraud and misconduct in procuring the Award insofar as a Federal

            indictment (issued on January 11, 2022 and unsealed a day later) alleges that the owners of

            respondent-i.e., Bradley Pierre, Marvin Moy, William Weiner, Andrew Prime, and Arthur
             650019/2023 AMERICAN TRANSIT INSURANCE COMPANY, vs. RUTLAND MEDICAL, PC, A/A/0                           Page 1 of4
             DENISHA WALLS,
             Motion No. 001

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                                                                                                     INDEX NO. 650019/2023
  NYSCEF DOC. NO. 19                                                                         RECEIVED NYSCEF: 01/02/2024

            Bogoraz-participated in a criminal scheme to exploit insurance programs designed to protect

            motor vehicle accident victims from at least in or about 2008 up to and including in or about 2021

            by using medical professional corporations they owned and controlled to, inter alia bill insurance

            companies for unnecessary and excessive medical treatments and falsify clinical findings of

            injuries in MRis.

                    Respondent opposes the Petition and cross-moves to confirm the arbitration award and

            seeks attorney's fees related its opposition to the petition, pursuant to 11 NYCRR 65-4.10(j)(4).

                                                       DISCUSSION

                    "Judicial review of arbitration awards is extremely limited" (O'Neill v GEICO Ins. Co.,

            162 AD3d 77 6, 777-78 [2d Dept 2018] [internal citations and quotations omitted]). "Where, as

            here, there is compulsory arbitration involving no-fault insurance, the standard of review is

            whether the award is supported by evidence or other basis in reason. This standard has been

            interpreted to mean that the relevant test is whether the evidence is sufficient, as a matter of law,

            to support the determination of the arbitrator, is rational and is not arbitrary and capricious" (Miller

            v Elrac, LLC, 170 AD3d 436, 436-37 [1st Dept 2019] Iv to appeal denied, 33 NY3d 907 [2019])

            citing Matter of Petrofsky [Allstate Ins. Co.l 54 NY2d 207, 211 [1981]). "Although compulsory

            arbitration awards are subject to a broader scope ofreview than awards resulting from consensual

            arbitration, the scope of judicial review of such an arbitration award is still limited to whether the

            award is supported by the evidence or other basis in reason as appears in the record" (Id.).

                    No grounds for vacatur have been presented here. To the extent petitioner relies upon the

            Federal indictment to argue for vacatur pursuant to CPLR §7511(b)(l)(i), an indictment is not

            proof of fraud (See Willson v Eveline, 35 AD 92, 92 [3d Dept 1898] ["the mere finding of an

            indictment is not proof of the defendant's guilt"]) and, more importantly, the Court cannot consider

             650019/2023 AMERICAN TRANSIT INSURANCE COMPANY, vs. RUTLAND MEDICAL, PC, A/A/0          Page 2 of 4
             DENISHA WALLS,
             Motion No. 001

                                                            2 of 4
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                                                                                                 INDEX NO. 650019/2023
  NYSCEF DOC. NO. 19                                                                      RECEIVED NYSCEF: 01/02/2024

            this argument as the awards reflect that this argument was not raised before the arbitrators (See

            Country-Wide Ins. Co. v Booth Med. Services, P.C., 2022 WL 1016822 [Sup Ct, NY County

            2022] [internal citations omitted]; see also Gaspard v Am. Tr. Ins. Co., 157 AD2d 543, 544 [1st

            Dept 1990] [arguments precluded by respondent's failure to raise them in timely appeal to master

            arbitrator]). Accordingly, the Court denies the Petition and grants respondent's cross-petition to

            confirm the Award (CPLR §751 l[e]).

                      Respondent's request for attorneys' fees pursuant to 11 NYCRR §65-4.10(j)(4) is also

            granted. Petitioner's argument that these attorney's fees are to be capped pursuant to 11 NYCRR

            § 65-4.6( d) has no foundation in law (See ~ Country-Wide Ins. Co. v Advantage Med

            Innovations, Inc., 2021 NY Slip Op 30418[U], 3 [Sup Ct, NY County 2021]; Country-Wide Ins.

            Co. v Fifth Ave. Surgery Ctr., 2020 NY Slip Op 33999[U], 9 [Sup Ct, NY County 2020]).

            Respondent is directed to serve an affirmation setting forth its reasonable attorney's fees in

            defending this action within thirty days from the date of this decision, order, and judgment.

                      Accordingly, it is hereby

                      ORDERED and ADJUDGED that the petition is hereby denied and dismissed; and it is

            further

                      ORDERED and ADJUDGED that the cross-petition to confirm the Master Arbitration

            Award is granted; and it is further

                      ORDERED that respondent Rutland Medical, PC, having an address at 145 East 98th

            Street, Brooklyn, New York 11212, shall recover from petitioner American Transit Insurance

            Company, having an address at One Metro Tech Center, 7th Fl. Brooklyn, NY 11201, the amount

            of $1,081.63, plus interest at the rate of9% per annum from the date of July 22, 2022, as computed

            by the Clerk in the amount of $ ______ , together with costs and disbursements in the

             650019/2023 AMERICAN TRANSIT INSURANCE COMPANY, vs. RUTLAND MEDICAL, PC, A/A/0      Page 3 of 4
             DENISHA WALLS,
             Motion No. 001

                                                          3 of 4
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                                                                                                    INDEX NO. 650019/2023
  NYSCEF DOC. NO. 19                                                                          RECEIVED NYSCEF: 01/02/2024

            amount of$ ______ as taxed by the Clerk, for the total amount of$ ______ , and that

            the respondent have execution therefor; and it is further

                    ORDERED that respondent shall submit an affirmation setting forth their reasonable

            attorneys' fees in defending this action within thirty days, and it is further

                    ORDERED that, within twenty days from entry of this decision, order, and judgment

            respondent shall serve a copy of this decision, order, and judgment, with notice of entry on

            petitioner as well as and on the Clerk of the General Clerk's Office (60 Centre Street, Room 119)

            and the Clerk of the Court (60 Centre Street, Room 141B); and it is further

                    ORDERED that such service upon the Clerk shall be made in accordance with the

            procedures set forth in the Protocol on Courthouse and County Clerk Procedures for Electronically

            Filed Cases (accessible at the "E-Filing" page on the court's website at the address

            www.nycourts.gov/supctmanh).

                    This constitutes the decision, order, and judgment of the Court.

                      1/2/2024
                       DATE                                                      HON. JUDY H. KIM, J.S.C.

                                     ~
             CHECK ONE:                  CASE DISPOSED                    NON-FINAL DISPOSITION

                                         GRANTED         0    DENIED      GRANTED IN PART          □ OTHER
             APPLICATION :               SETTLE ORDER                     SUBMIT ORDER

             CHECK IF APPROPRIATE:       INCLUDES TRANSFER/REASSIGN       FIDUCIARY APPOINTMENT    □ REFERENCE

             650019/2023 AMERICAN TRANSIT INSURANCE COMPANY, vs. RUTLAND MEDICAL, PC, A/A/0         Page 4 of 4
             DENISHA WALLS,
             Motion No. 001

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