Key Takeaway
Analysis of Appellate Term decision limiting CPLR 3212(f) relief in three circumstances. Essential guidance for NY civil practice and discovery strategy.
In the intricate world of New York civil litigation, understanding when discovery is appropriate and when it crosses the line into procedural overreach is crucial for both plaintiffs and defendants. A recent decision from the Appellate Term, Second Department provides valuable guidance on the limits of CPLR 3212(f) relief, establishing important precedents that affect litigation strategy throughout Long Island, New York City, and across the state.
Understanding CPLR 3212(f) and Its Strategic Importance
CPLR 3212(f) serves as a critical procedural tool in New York civil practice, allowing parties to defer summary judgment when additional discovery is necessary to adequately respond to the motion. This provision recognizes that justice sometimes requires access to information that may be exclusively within the opposing party’s control before a court can fairly determine whether summary judgment is appropriate.
For practitioners in Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island, understanding the proper application and limitations of this rule is essential for effective litigation management.
The Bath Medical Supply Case: Setting New Precedents
The Appellate Term’s decision in Bath Med. Supply, Inc. v Allstate Indem. Co., 2010 NY Slip Op 20059 (App. Term 2d Dept. 2010), establishes significant limitations on when CPLR 3212(f) relief is appropriate, creating three distinct categories where such relief should be denied.
Jason Tenenbaum’s Original Analysis
Bath Med. Supply, Inc. v Allstate Indem. Co., 2010 NY Slip Op 20059 (App. Term 2d Dept. 2010)
First, the Appellate Term, Second Department, appears to have, for the first time that I can recall, denied a 3212(f) application when the defense is based upon a corporate structure issue. The court found it relevant that many of the corporate documents, which the 3212(f) defense was based upon, are readily available.
Second, the portion of the 3212(f) application, which was based upon the purported need for an EBT of the assignor based upon an allegation that the assignor received the supplies, was denied since the defense may have been precluded.
Third, even if the defense was not precluded, a deposition of the assignor without a subpoena, as we know, is palpably improper.
“The court denied plaintiff’s motion for summary judgment pursuant to CPLR 3212 (f) on the ground that defendant was entitled to discovery pertaining to its contention that plaintiff had billed insurance companies for medical supplies which were never provided. However, defendant failed to make any showing that its denial of claim forms were timely mailed and that it is not precluded from raising fraudulent billing as a defense (see Fair Price Med. Supply Corp. v Travelers Indem. Co., 10 NY3d 556 ; Presbyterian Hosp. in City of NY v Maryland Cas. Co., 90 NY2d 274, 282 ). Consequently, the court’s determination that discovery was necessary to obtain facts relevant to this precluded defense was improper, and, thus, plaintiff’s motion for summary judgment should not have been denied on that basis.
A defense that plaintiff may be ineligible to recover no-fault benefits because it failed to adhere to applicable statutes (cf. State Farm Mut. Auto. Ins. Co. v Mallela, 4 NY3d 313 ) is not precluded, notwithstanding defendant’s failure to demonstrate that its denial of claim forms were timely sent. However, defendant has offered no factual basis for its contention that plaintiff was not properly incorporated as a provider of durable medical equipment or failed to obtain any license that may have been required at the time it delivered medical equipment to its assignor. Further, in light of the availability of public records documenting plaintiff’s licensing status, defendant “failed to demonstrate that discovery was needed in order to show the existence of a triable issue of fact (see CPLR 3212 )” (Delta Diagnostic Radiology, P.C. v Interboro Ins. Co., 25 Misc 3d 134, 2009 NY Slip Op 52222 ; see also Corwin v Heart Share Human Servs. of NY, 66 AD3d 814, 815 an evidentiary basis to suggest that discovery might lead to relevant evidence and that facts essential to justify opposition to the motion were exclusively within the knowledge and control of the plaintiff”]).”
We note that, insofar as the order conditioned the grant of defendant’s cross motion on the nonappearance of plaintiff’s assignor for an examination before trial, the order was improper. As plaintiff’s assignor is neither a party to this action nor under plaintiff’s control (Leon v Martinez, 84 NY2d 83, 88 ; Cardtronics, LP v St. Nicholas Beverage Discount Ctr., Inc., 8 AD3d 419, 420 ; 6A NY Jur 2d, Assignments §§ 59, 85), the sanctions provided by CPLR 3126 (3) for nondisclosure cannot be imposed on plaintiff for failing to produce its assignor for an examination before trial (MIA Acupuncture, P.C. v Mercury Ins. Co., ___ Misc 3d ___, 2009 NY Slip Op 29509 ).
First Circumstance: Corporate Structure Issues with Available Documentation
Groundbreaking Precedent in Corporate Defense Limitations
The first significant limitation established by this decision relates to corporate structure defenses where relevant documentation is readily accessible through public records. This represents a notable departure from previous practice where courts often granted broad discovery rights regarding corporate formation and licensing issues.
Practical Impact on Business Litigation
For business litigation throughout New York, this precedent requires defendants to:
- Conduct thorough public record searches before seeking discovery
- Demonstrate that essential information is genuinely unavailable through public sources
- Provide specific factual bases for corporate structure challenges
- Avoid general fishing expeditions disguised as necessary discovery
Long Island and NYC Business Implications
Companies operating in the New York metropolitan area must understand that their corporate documentation, licensing status, and registration information is increasingly subject to public scrutiny without extensive discovery protection.
Second Circumstance: Precluded Defenses and Discovery Limitations
The Defense Preclusion Framework
The second limitation addresses situations where the underlying defense itself may be precluded due to procedural failures. The court established that discovery cannot be used to develop defenses that may have been waived or precluded by the defendant’s own procedural lapses.
Fraudulent Billing Defense Complications
In the context of no-fault insurance disputes, this ruling has particular significance for carriers who fail to demonstrate timely mailing of denial forms or attempt to raise fraud defenses without proper procedural foundation.
Third Circumstance: Improper EBT Demands and Control Issues
Assignment Law and Discovery Limitations
The third circumstance addresses the fundamental principle that parties cannot be compelled to produce individuals over whom they have no control. This limitation is particularly important in assignment cases common throughout New York’s no-fault insurance system.
The Control Standard in Practice
The ruling reinforces established law that assignors are not under the assignee’s control for discovery purposes, and subpoena power must be used for non-party depositions.
The Broader Discovery Reform Movement
Efficiency and Judicial Resource Management
This decision reflects a broader judicial trend toward limiting discovery abuse and promoting efficient resolution of disputes. Courts increasingly scrutinize discovery requests that lack specific factual foundations or seek information readily available elsewhere.
Impact on Litigation Strategy
Practitioners must now approach discovery with greater specificity and justification, providing concrete factual bases for discovery requests and exhausting public record sources before seeking private discovery.
Implications for No-Fault Insurance Practice
Enhanced Plaintiff Protection
This ruling provides significant protection for medical providers and other plaintiffs in no-fault insurance disputes by limiting defendants’ ability to delay cases through inappropriate discovery.
Insurance Company Adaptation Required
Insurance carriers must adapt their defense strategies to comply with these new limitations by improving claim denial procedures, conducting more thorough initial investigations, and developing better factual bases for defense claims.
Practical Applications Across New York Practice
Supreme Court Practice
These principles apply broadly across New York Supreme Court practice, affecting commercial litigation, personal injury cases, professional malpractice claims, and any case where CPLR 3212(f) relief is sought.
Appellate Strategy Considerations
The decision provides guidance for appellate practitioners on challenging inappropriate discovery orders, defending summary judgment grants against discovery-based appeals, and protecting clients from discovery abuse.
Frequently Asked Questions
When is CPLR 3212(f) discovery still appropriate?
Discovery remains appropriate when the opposing party has exclusive control over essential information that cannot be obtained through public records or other reasonable means.
How does this affect existing discovery orders?
Existing orders should be reviewed for compliance with these new standards, and modification may be appropriate in some cases.
Can defendants still challenge corporate structures?
Yes, but they must provide specific factual bases and demonstrate that necessary information is not publicly available.
What about fraud defenses in insurance cases?
Fraud defenses remain viable, but insurers must establish proper procedural foundations before seeking related discovery.
How does this affect assignment cases generally?
The ruling reinforces that assignees cannot be compelled to produce assignors for examination without proper subpoena procedures.
Strategic Recommendations for Practitioners
For Plaintiffs’ Attorneys
- Leverage this precedent to challenge inappropriate discovery demands
- Move for summary judgment more aggressively when defenses lack factual support
- Protect clients from fishing expedition discovery requests
- Use this decision to streamline case resolution
For Defense Counsel
- Strengthen factual investigations before raising defenses
- Ensure proper procedural foundations for all defense claims
- Conduct thorough public record searches before seeking discovery
- Focus discovery requests on genuinely necessary information
For Insurance Practitioners
- Improve claim handling procedures and documentation
- Develop better initial defense investigations
- Ensure compliance with denial notice requirements
- Adapt to more restrictive discovery environment
The Future of Discovery Practice in New York
This decision signals a continued evolution toward more efficient and focused discovery practice in New York courts. Practitioners should expect increased scrutiny of discovery requests, greater emphasis on factual specificity, enhanced protection from discovery abuse, and faster resolution of straightforward cases.
Conclusion: A New Era of Focused Discovery Practice
The Bath Medical Supply decision represents a significant step forward in New York civil practice, establishing clear boundaries for CPLR 3212(f) relief while promoting more efficient case resolution. By limiting discovery abuse while preserving legitimate discovery rights, the decision strikes an important balance that benefits the judicial system and parties alike.
For legal professionals throughout Long Island, New York City, and across New York State, understanding and applying these new limitations will be crucial for effective advocacy and case management.
Expert Legal Representation for Complex Discovery Issues
Navigating the evolving landscape of New York discovery practice requires experienced counsel who understands both the new limitations and the opportunities they create. Whether you’re facing inappropriate discovery demands, seeking to enforce these new standards, or dealing with complex procedural issues in insurance litigation, expert legal guidance can make the difference between success and costly delays.
For comprehensive assistance with discovery disputes, summary judgment motions, insurance litigation, or any complex civil practice matter, contact our experienced team at 516-750-0595. We provide strategic representation for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and across New York State.
Don’t let discovery disputes derail your case or drain your resources. Call today to discuss how we can help you navigate these complex procedural issues while achieving your litigation objectives efficiently and effectively.
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Legal Update (February 2026): The CPLR 3212(f) standards and procedural requirements discussed in this 2010 decision may have been modified through subsequent appellate decisions, rule amendments, or changes to discovery practice standards over the past 16 years. Additionally, evolving case law regarding summary judgment practice and discovery sanctions under CPLR 3126 may have refined or expanded upon the three-part framework established in Bath Medical Supply. Practitioners should verify current CPLR 3212(f) jurisprudence and consult recent Appellate Division decisions for the most current standards governing discovery relief in summary judgment practice.
