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Picciano & Scahill, P.C. Newsletter
In This Issue
Decisions of Note
Favorable Appellate Decisions
Psychological Breach
Four Dismissals for the Price of One
Defense Verdicts
No Fault

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How am I Doing?

Former NYC Mayor Ed Koch loved to ask New Yorkers, "How am I doing?"  At Picciano & Scahill we do the same.  We know that results matter and we are pleased to report that we are winning 85% of our trials so far this year.  Since January 2009 we have taken more than 15 defense verdicts and we prevailed in five appellate decisions.  Just like the Mets, we always strive to do better.   

How long does it take to get your first trial win?

For Alla Kleban, the newest attorney at P&S, victory came just days after admission to the bar!  This No Fault case involved State Farm's assertion that a cervical MRI was prescribed prematurely.  Coverage was timely denied based on peer review.  After testimony at trial by our medical expert, the Judge ruled in our favor.  Congratulations to Alla for breaking the record in getting a Result that Matters!

We make "House Calls"

Our "Golden Rule" is Client Responsiveness and that includes making House Calls.  We welcome the opportunity to spend time with insurers, self-insureds and claims administrators.  Frank Scahill found the opportunity to meet with one of the firm's insurance carriers last week and helped exchange valuable information and develop better rapport.  If you would like to schedule a Picciano & Scahill House Call, email Frank Scahill or call Frank at 516.294.5200. 

iNews Issue: 4 May/2009

Decisions of Note

 

constructionThe Appellate Division, First department, in a decision issued on May 14, 2009, revisited the thorny issue of notice triggering coverage under a policy of liability insurance. Here the issue was whether a prompt disclaimer of coverage was required when an Insurance Carrier received notice of the claim from another carrier on behalf of a mutual insured. In this case the plaintiff Construction Manager was insured by Travelers.
 
An employee of a subcontractor was injured in a trip and fall accident and subsequently filed suit. The Construction Manager notified Travelers of the suit and in turn, Travelers advised Hartford, requesting that Hartford provide a defense and indemnity pursuant to the applicable policy of the subcontractor. Fifty-one days later Hartford disclaimed for failure to provide prompt notice of the occurrence. Hartford maintained that the notice requirements of Insurance Law section 3420(d) was inapplicable between insurers indicating Hartford's duty to disclaim is not triggered until the insured satisfies the Notice of Claim provision in the applicable policy. The Court held the tender letter offered by Travelers requesting Hartford to provide a defense to the mutual insured satisfied the Notice of Claim provision of the policy.
 
The Court held, "defendant Hartford has not made any attempt to justify its 45-to 50-day delay in disclaiming coverage of the underlying accident. Indeed, it has not even suggested that the letter tendering notice of the claim against plaintiff, IDA and the Yeshiva did not provide it with sufficient facts to disclaim coverage on any basis. Rather, misinterpreting the import of Bovis,(Bovis Lend Lease LMB Inc. v. Garito Contr., Inc. (38 A.D.3d 260 [2007]),  Hartford argues that Insurance Law § 3420(d) is inapplicable since the tender letter was from an insurer and the statute does not require a prompt response to claims asserted by other insurers. We thus conclude that Hartford's disclaimer letter was untimely as a matter of law (see e.g. West 16th St. Tenants Corp. v. Public Serv. Mut. Ins. Co., 290 A.D.2d 278 [2002], lv denied 98 N.Y.2d 605 [2002] [30 days unreasonable as a matter of law where sole ground on which coverage was disclaimed was insured's delay in notifying insurer of occurrence]), and that as a result, Hartford is precluded under § 3420(d) from disclaiming coverage."
 
JT Magen v. Hartford Fire Insurance Company
Construction manager commenced action against subcontractor's insurer, seeking a declaration that insurer owes it, and nonparty owners a defense and indemnification with respect to the underlying personal injury action brought against them by subcontractor's employee, who was injured at construction site. The Supreme Court, New York County, Marylin G. Diamond, J., 2008 WL 5998500, granted construction manager's cross motion for summary judgment, and insurer appealed.
 
Read full decision here.

Favorable Appellate Decision
The Appellate Term, First Department ruled in our favor in the matter of Diaz v Edwards 2009 NY Slip Op 50622(U) [23 Misc 3d 129(A)] (April 9, 2009).  The Appellate Court found that we established prima facie that plaintiff did not suffer a serious injury as defined in Insurance Law § 5102(d).
 
The Court stated "In opposition, plaintiff failed to submit the requisite contemporaneous or recent quantitative assessment of range of motion limitations based on objective testing (see Rossi v Alhassan, 48 AD3d 270 [2008]; Pulgram v Reisner, 44 AD3d 503 [2007]). While plaintiff's medical expert found that plaintiff had limited use and function of her left knee, he based his conclusion on plaintiff's subjective complaints of pain and did not report his personal observations of plaintiff while sitting, standing or walking, nor did he compare plaintiff's alleged limited abilities to the norm (see Page v Rain Hacking Corp., 52 AD3d 229 [2008])."
Does A Psychological Injury Breach The Threshold For Serious Injury In New York State?

psychologicalThis is an interesting decision from the New York Appellate Division, Third Department regarding whether or not psychological injury breaches the threshold for serious injury in New York State.   Terri Brandt-Miller v Rory E. McArdle, 21 A.D.3d 1152, 801 N.Y.S.2d 834, 2005 N.Y. Slip Op. 06706.  In this matter the plaintiff claimed post-traumatic stress disorder two years post accident.

The Court indicated that a "causally - related  emotional injury, alone or in combination with a physical injury, can constitute a serious injury".  In this case plaintiff's psychological records indicated "that nearly two years after the accident, plaintiff exhibited "symptoms of [posttraumatic stress disorder], including recurrent thoughts and memories of the [accident], driving anxiety, hypervigilance, and nightmares." The Court citing Bissonette v Compo 307 Ad2d 673, 672 N.Y.S. 2d 849 held "In our view, defendant failed to make a prima facie showing that plaintiff's alleged causally-related psychological injury did not amount to a serious injury."

Four Dismissals for the Price of One

 
ferrucciEvery Claims manager knows the defense costs on four consolidated actions in Kings County can run deep into their litigation budget. On the claims below we succeeded on summary judgment dismissal motions against all four claimants on a consolidated motion. The motion saved the Court the time to try the case to verdict and the carrier the expense of defending the claim through trial.  A job well done by Andrea Ferrucci, the head of our law and motions department.

 
Action 1:  YURIY PALIY, as Administrator of the Estate of OLGA PALIY, and YURIY PALIY, Individually, Individually
Action 2:  JEAN CHERVIN
Action 3:  MOSHE SILBERMAN
Action 4: URSULA RIVERA     
Defense Verdicts That Matter
 
cravenThomas P. Craven takes two - defense verdicts that is.  In Rodriques v Elliard (Suffolk County Supreme Court  24537/04-Verdict 4/28/09) the Court awarded a directed verdict finding that Plaintiff failed to make a prima facie case against our insured.  Another defense verdict was taken in the matter of Parris v Rookey after a jury trial on the issue of liability (Civil Court Kings County 300718/07- Verdict 5/12/09).

maillouxCharles Mailloux takes two also.  In Rocchio v Echevestre, (Bronx Supreme Court 20997/07-Verdict 4/28/09), the jury found for the defense determining there was no significant limitation or permanent consequential limitation to Plaintiff.  In the trial of Pruitt v Addison,(Bronx Supreme Court 20163/06-Verdict 5/13/09) Charles Mailloux was once again successful in taking a defense verdict.

danaIsaac Dana took a defense verdict in Nassau County on the claim of Bravo v Romero (Index No. 4983/07-Verdict 5/19/09).
No Fault Results That Matter

accidentA No Fault Appellate Decision with huge implications- Cornell Medical.

 

This Appellate case handled by Jason Tenenbaum at Picciano & Scahill has huge implications for many reasons. 

A medical provider now has to think twice before submitting a bill that is in excess of the fees that are allowable to be charged for that service.  Similarly, an attorney also has to think twice before taking a case involving a billing that is in excess of the fee schedule for fear that the attorney will not get paid for performing a legal service.  This case may reign in some of the overbilling for services that we have seen increasing in recent years. 

In this contested no-fault action, Picciano & Scahill moved for summary judgment in the Civil Court, in part, on the basis that the medical provider billed in excess of the fee schedule and was not entitled to an attorney fee.  Our client's denials and payments to the medical provider were untimely.  The applicable regulation 11 NYCRR 4.6(i), states that a medical provider is not entitled to an attorney fee if it bills in excess of the fee schedule. 

The Civil Court denied P&S's motion for summary judgment on the basis that we forfeited our right to rely on 65-4.6(i) since our denials and payments were untimely.  We appealed.  The Appellate Term, on appeal, agreed with our argument and modified the order of the Civil Court.  In pertinent part, the Appellate Term held that the regulation should be interpreted as written.  In this regard, an attorney fee is not due and owing when a medical provider bills in excess of the fee schedule, regardless of the timeliness or existence of a denial.  The Appellate Term, therefore, granted us partial summary judgment to the extent that Plaintiff would not be entitled to an attorney fee in this matter.
 
tenenbaumJason Tenenbaum was successful in two more No-Fault Appellate Decisions recently.  In St. Vincent Medical Care v Mercury, we appealed the motion for partial summary judgment.  The Appellate court granted our appeal dismissing several causes of action.   In William Bongiorno v State Farm, Jason Tenenbaum argued before the Appellate Court and our motion for Summary Judgment was reversed without costs.  
Contact Frank Scahill, Managing Partner, at fscahill@psnylaw.com.
 

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