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Presbyterian Hospital in City of New York v. Aetna Casualty & Surety Co.

Citations: 221 A.D.2d 427; 633 N.Y.S.2d 586; 1995 N.Y. App. Div. LEXIS 12004

Court: Appellate Division of the Supreme Court of the State of New York; November 12, 1995; New York; State Appellate Court

Narrative Opinion Summary

In a dispute under Insurance Law § 5106, a hospital sought to recover no-fault benefits from an insurance carrier, claiming an unpaid bill despite having already received full payment from the patient's health care carrier. Initially, the hospital denied having received this payment. However, when ordered by the court, the hospital provided an affidavit confirming that payment was made nine months before the lawsuit. Additionally, the hospital accepted a partial payment from the defendant shortly after initiating the lawsuit, resulting in total payments from both carriers nearly doubling the original bill amount. The Supreme Court of Nassau County dismissed the complaint and awarded costs to the defendant, a decision that was upheld on appeal. The court found the dismissal and cost imposition appropriate under 22 NYCRR 130-1.1 due to the hospital's conduct, citing relevant case law. The ruling was concurred by Judges Thompson, Joy, Goldstein, and Florio, affirming the lower court's decision based on the undisputed facts of prior payment.

Legal Issues Addressed

Affidavit Requirement to Confirm Payment

Application: The hospital was ordered to provide an affidavit confirming receipt of payment, which disclosed that payment had been received nine months prior to the lawsuit.

Reasoning: Defense counsel presented evidence of this payment, which the hospital initially denied until ordered by the court to provide an affidavit confirming the payment, revealing it occurred nine months before the lawsuit was filed.

Imposition of Costs under 22 NYCRR 130-1.1

Application: The court deemed the dismissal and imposition of costs on the hospital appropriate due to the hospital's conduct in pursuing the lawsuit after receiving full payment.

Reasoning: The court deemed the dismissal and cost imposition appropriate under 22 NYCRR 130-1.1, citing relevant case law for support.

Recovery of No-Fault Benefits under Insurance Law § 5106

Application: The hospital's claim for no-fault benefits was dismissed because it had already received full payment from the patient's health care carrier prior to the lawsuit.

Reasoning: The court found it undisputed that the hospital had already received full payment from the patient's health care carrier prior to initiating the lawsuit, despite the hospital's claim of an unpaid bill.