Prima facie: schizophrenia from the Appellate Term

Understanding Prima Facie Evidence in New York Insurance Law: A Critical Analysis

When it comes to no-fault insurance litigation in New York and New Jersey, establishing a prima facie case can make or break your claim. The recent decision in Mary Immaculate Hosp. v New York Cent. Mut. Fire Ins. Co. highlights a troubling inconsistency in how different appellate courts approach this fundamental legal requirement—what practitioners are calling “schizophrenia from the Appellate Term.”

The Original Analysis: A Legal Precedent Under Scrutiny

Mary Immaculate Hosp. v New York Cent. Mut. Fire Ins. Co.
2008 NY SlipOp 52046(U)(App. Term 2d Dept. 9th and 10th Jud. Dis. 2008)

I have been waiting for the day when a Henig Hospital case with the famous Hospital Receivable’s third-party billing affidavit (which we all know is insufficient to lay a proper foundation for entry into evidence of the billing forms) to be evaluated by the Appellate Term, Second Department.

Let me explain. The famous Mary Immaculate Hosp. v Allstate Ins. Co., 5 AD3d 742 (2d Dept. 2004) case is a Appellate Division, Second Department case, which involved a Henig third-party biller affidavit. The Apppellate Division, as we all know, said that a prima facie case consists of submission of a claim form, and proof that the bill is overdue. Therefore, Mary Immaculate was granted summary judgment.

Here, the Appellate Term today ducked the prima facie issue. The Court said that the issue is not preserved since the issue was not raised in the initial answering papers of New York Central Mutual. Therefore, the issue was not before the Court.

However, the case which this case “cf” cited said that the issue of admissiblity of business records may be raised for the first time on appeal. See, Bath Med. Supply, Inc. v Deerbrook Ins. Co. , 14 Misc 3d 135(A)(App. Term 2d and 11th Jud. Dis. 2007). Yet, this case said that an appellate court may not do this. My suspicion is that the Appellate Term did not want to deal with the fact that these third-party affidavits are sufficient before the Appellate Division, yet are not acceptable before the Appellate Term.

I feel that at some point, we are going to have a prima facie showdown in the Second Department. I believe this will happen soon.

What This Means for New York and Long Island Practitioners

For attorneys practicing in Nassau, Suffolk, Queens, and Brooklyn counties, this appellate inconsistency creates significant strategic challenges. The Appellate Term’s reluctance to address the prima facie requirements directly leaves practitioners in a precarious position when preparing their cases.

The Practical Implications

When handling no-fault insurance cases in the greater New York area, attorneys must navigate this judicial uncertainty carefully. The discrepancy between what the Appellate Division finds sufficient versus what the Appellate Term will accept for prima facie evidence means that case preparation strategy must account for both standards.

In Long Island counties like Nassau and Suffolk, where many medical providers rely on third-party billing services, this issue has particular relevance. Hospitals and medical practices throughout the region often use Henig-type billing arrangements, making proper foundation for business records a critical concern.

Strategic Considerations for Practitioners

The reluctance of the Appellate Term to address this head-on suggests several practical considerations:

• Evidence Preparation: Always prepare your case as if you’ll need to meet the higher evidentiary standard, even if precedent suggests otherwise
• Affidavit Quality: Third-party billing affidavits should be scrutinized for foundation issues before relying on them
• Preservation Strategy: As this case demonstrates, failing to raise evidentiary issues in initial pleadings can result in waiver
• Appeal Preparation: Be aware that different appellate courts may apply different standards to the same evidence

Understanding New York’s No-Fault System Context

New York’s comprehensive no-fault insurance system, governed primarily by Insurance Law Article 51, requires prompt payment of legitimate medical bills arising from motor vehicle accidents. However, the procedural requirements for proving these claims have evolved through case law, creating the current situation where different courts apply different standards.

The Business Records Exception Challenge

The core issue revolves around CPLR 4518(a), New York’s business records exception to the hearsay rule. For medical providers in the New York metropolitan area, understanding when billing records satisfy this exception is crucial for successful litigation.

The traditional requirements include:

• Records must be made in the regular course of business
• The person making the record must have personal knowledge
• The record must be made contemporaneously with the event
• Proper foundation must be laid through testimony or affidavit

Frequently Asked Questions

What constitutes a prima facie case in New York no-fault litigation?

According to the Mary Immaculate decision, a prima facie case traditionally required only submission of a claim form and proof that payment was overdue. However, this analysis suggests that standard may not be universally applied across all appellate courts.

Can evidentiary issues be raised for the first time on appeal?

The law appears inconsistent on this point. While Bath Medical Supply suggested business records admissibility could be raised on appeal, this case indicates the Appellate Term may not follow that precedent uniformly.

How should Long Island medical providers handle third-party billing affidavits?

Medical providers in Nassau and Suffolk counties should ensure their third-party billing services can provide affidavits that meet strict foundation requirements, not just the minimal standards that some precedents might suggest are sufficient.

What does this “schizophrenia” mean for future cases?

The term reflects the inconsistent application of evidentiary standards between different levels of New York’s appellate courts. This suggests practitioners should prepare for potential conflicts between precedents until higher courts provide clarity.

Should I appeal adverse rulings on prima facie evidence?

Given the apparent split in how courts approach these issues, appeals may be warranted in appropriate cases. However, careful consideration of preservation issues and the specific court’s track record is essential.

The Path Forward: Preparing for the “Prima Facie Showdown”

As predicted in this analysis, the inconsistency between appellate levels suggests an eventual resolution by the Court of Appeals will be necessary. For practitioners in New York and New Jersey, this means staying current with developments and preparing cases with an eye toward potential appellate review.

Professional Guidance for Your No-Fault Insurance Case

Navigating the complexities of New York’s no-fault insurance system requires experienced legal counsel who understands both the established precedents and emerging trends in appellate decision-making. Whether you’re a medical provider seeking payment for services or an insurance company defending claims, proper legal guidance is essential.

If you’re dealing with no-fault insurance disputes in New York or New Jersey, don’t let procedural missteps jeopardize your case. Contact an experienced attorney who understands the nuances of prima facie requirements and appellate practice.

Call 516-750-0595 to discuss your case with a knowledgeable attorney who can help you navigate these complex legal waters and protect your interests.

Related Articles

• Understanding Third-Party Billing Records in New York No-Fault Claims: Appellate Term’s First Application of Carothers
• The Court offers some guidance as to the business records exception
• Pine Hollow Dead: Business Records Rule Restored in NY Personal Injury Law
• All you wanted to know about 4518(a) but were afraid to ask
• New York No-Fault Insurance Law

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Legal Update (February 2026): Since this 2008 analysis of prima facie evidence standards in no-fault insurance cases, New York’s regulatory framework has undergone significant changes, including amendments to insurance regulations, updates to claims processing procedures, and potential modifications to evidence foundation requirements under CPLR 4518. Practitioners should verify current provisions regarding business records admissibility and prima facie case requirements, as appellate court interpretations and regulatory guidance may have evolved substantially over the intervening years.