Key Takeaway
First Department Court rules on GEICO priority payment disputes in M.N. Dental Diagnostics case. Expert legal analysis from Jason Tenenbaum Law. Call 516-750-0595.
Understanding Priority of Payment in New York No-Fault Insurance Law
When multiple insurance carriers are involved in a motor vehicle accident claim, determining which insurer has the primary obligation to pay no-fault benefits can become a complex legal issue. The M.N. Dental Diagnostics, P.C. v Government Employees Ins. Co., 2011 NY Slip Op 01333 (1st Dept. 2011) case provides crucial guidance for both personal injury attorneys and insurance professionals throughout Long Island and New York City.
Case Background: M.N. Dental Diagnostics vs. GEICO
The Appellate Division, First Department, in an appeal by permission from the Appellate Term, First Department, affirmed the order of the Civil Court, which found that: (a) priority of payment is not a coverage issue; and (b) disputes in this regard must be resolved through intercompany arbitration. This decision was correctly decided and, actually, benefits the defense bar as much as the plaintiffs bar. Why you ask?
Well, have you ever been third-partied by Geico? My clients have. Exactly – CPLR 3211(a)(7) – see you later.
Finally, I must conclude by congratulating Steven Neuwirth, from Baker, Sanders, Barshay, Fass, Muhlstock & Neuwirth. Not only did he defeat me in A&A Dental v. State Farm, but he is now the case citation on priority of payment.
The Significance of Priority of Payment Determinations
Priority of payment disputes arise frequently in New York’s no-fault insurance system, particularly in cases involving multiple vehicles and insurance policies. These disputes typically occur when:
- An injured party has coverage under multiple no-fault policies
- Different insurance carriers claim that another insurer should be primarily responsible
- Medical providers seek payment from what they believe is the correct primary insurer
- Coverage questions intersect with priority determinations
For personal injury attorneys serving clients in Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx, understanding these priority rules is essential for effective case management and client advocacy.
Why This Ruling Matters for Defense Attorneys
The First Department’s decision in M.N. Dental Diagnostics actually provides significant benefits to defense counsel. When GEICO or other insurers attempt to third-party defendants in priority disputes, courts can now dismiss these claims under CPLR 3211(a)(7) for failure to state a cause of action. This procedural advantage saves defendants and their counsel considerable time and resources that would otherwise be spent litigating coverage priority issues in tort actions.
Intercompany Arbitration: The Proper Forum
The court’s determination that priority disputes must be resolved through intercompany arbitration rather than through coverage litigation represents a significant development in no-fault law. This ruling:
- Streamlines the dispute resolution process
- Removes priority questions from tort litigation
- Provides a specialized forum with expertise in insurance law
- Reduces court congestion and litigation costs
Practical Implications for Personal Injury Cases
Personal injury attorneys throughout the New York metropolitan area should understand how this ruling affects their practice:
Medical Provider Representation
When representing medical providers seeking no-fault reimbursement, attorneys can now confidently argue that priority disputes cannot be raised as coverage defenses. This eliminates a common delay tactic used by insurance carriers to avoid payment.
Tort Litigation Strategy
In personal injury lawsuits, defendants can move to dismiss third-party claims related to priority disputes, citing the M.N. Dental Diagnostics precedent. This procedural tool can significantly narrow the scope of litigation and reduce defense costs.
Insurance Coverage Analysis
Attorneys must now clearly distinguish between genuine coverage issues and priority disputes. While coverage questions remain litigable, priority determinations are reserved for arbitration proceedings.
The Broader Context of New York No-Fault Law
This decision fits within the broader framework of New York’s no-fault insurance system, designed to provide prompt payment of medical expenses and lost wages regardless of fault. The system works most effectively when procedural disputes are resolved efficiently, allowing injured parties to receive necessary medical care without delay.
For residents of Long Island and New York City who have been injured in motor vehicle accidents, understanding these legal distinctions can be crucial for ensuring proper insurance coverage and compensation.
Frequently Asked Questions
What is priority of payment in no-fault insurance?
Priority of payment determines which insurance carrier has the primary obligation to pay no-fault benefits when multiple policies might apply to a single claim. New York’s no-fault law establishes a hierarchy of coverage priority.
Can priority disputes delay my medical treatment?
Under the M.N. Dental Diagnostics ruling, priority disputes should not delay treatment or payment, as these issues must be resolved through intercompany arbitration rather than coverage litigation.
How does this ruling affect personal injury lawsuits?
The ruling prevents defendants from being improperly third-partied into priority disputes, allowing personal injury cases to focus on liability and damages rather than insurance coverage priority.
What should I do if my insurance company denies coverage citing priority issues?
If you believe your insurer is improperly denying coverage by claiming another insurer has priority, consult with an experienced personal injury attorney who can help distinguish between legitimate coverage issues and priority disputes.
Contact an Experienced Personal Injury Attorney
If you or a loved one has been injured in a motor vehicle accident and are facing insurance coverage disputes or delays in no-fault benefits, the Law Office of Jason Tenenbaum can help. Our experienced team understands the complexities of New York’s no-fault insurance system and can fight for the compensation you deserve.
Don’t let insurance companies use procedural delays to avoid their obligations. Contact us today at 516-750-0595 for a free consultation. We serve clients throughout Long Island, Queens, Brooklyn, Manhattan, the Bronx, and the entire New York City metropolitan area.
With decades of experience in personal injury law and no-fault insurance disputes, we have the knowledge and resources to protect your rights and secure maximum compensation for your injuries. Call now to discuss your case with a dedicated personal injury attorney who will fight for justice on your behalf.
Related Articles
- NY No-Fault Arbitration: Understanding Priority of Payment and Award Challenges
- Priority of payment – an extended discussion
- Exhaustion of benefits – strict priority of payment regimen is somewhat abrogaded
- A garage policy which insures a temporary substitute is not on the hook for liability coverage (and possibly PIP)
Legal Update (February 2026): Since this 2011 decision, New York’s no-fault insurance regulations have undergone several revisions, including updates to the Insurance Law Article 51 and amendments to 11 NYCRR Part 65. Practitioners should verify current provisions regarding priority of payment determinations and intercompany arbitration procedures, as regulatory changes may have modified the framework for resolving multi-carrier disputes.
