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An arbitrator’s order is not binding where the provider was not named in the underlying arbitrationDecember 8, 2013

Queens Arthroscopy & Sports Medicine v Unitrin Direct Ins. Co, 2013 NY Slip Op 52021(U)(App. Term 2d Dept. 2013)

“On March 23, 2011, plaintiff moved in this action for summary judgment, and the following day, the arbitrator issued a decision, which stated that, based upon the credible evidence before him, either defendant or Arch Insurance Company [*2]would be the source of first-party no-fault benefits. The arbitrator directed Arch Insurance Company to commence processing plaintiff’s claims, because that insurer had received notice of the claims first.”

“”However, plaintiff was not named in the arbitration and was not in privity with its assignor, who was a named party in that proceeding, as the assignment of benefits had been executed before the arbitration proceeding had been commenced, and plaintiff otherwise had no full and fair opportunity to appear and defend its interests in that proceeding. Consequently, the instant action is not subject to dismissal by virtue of the decision in the arbitration hearing”

There is no way to compel a medical provider to participate in an arbitration that it does not file.  Perhaps, Defendant should have filed a declaratory judgment and named everybody in it?

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