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Causation defense not substantiated in intercompany arbitration
Article 75

Causation defense not substantiated in intercompany arbitration

By Jason Tenenbaum 2 min read

Key Takeaway

DTG Operations v Travelers: the 2016 loss-transfer award survived review because the record supported causation. Compare the different Medco Tech remand.

This article is part of our ongoing article 75 coverage, with 81 published articles analyzing article 75 issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.

DTG Operations: a supported loss-transfer award

Matter of DTG Operations, Inc. v Travelers Indemnity Co., 145 AD3d 646 (1st Dept 2016), was decided December 29, 2016.

Travelers had paid personal injury protection benefits and sought loss-transfer reimbursement under Insurance Law § 5105 through mandatory intercompany arbitration.

DTG sought to vacate the resulting award. The First Department affirmed the denial of that petition because the record supported a causal relationship between the accident and the treatment paid for.

This was an inter-insurer reimbursement dispute. It was not a provider’s equipment claim or a general ruling that any assertion of aggravation proves causation.

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The explanation in the record

Travelers responded in writing to the causation argument. It explained that the injured person had a preexisting disability, that the accident worsened the condition and that recovery required more treatment.

The court found an evidentiary basis for the award. It also noted the absence of fraud allegations and stated that further proof could have been requested if the petitioner questioned the amount paid.

The opinion does not discuss a later tumor, an ignored post-IME complication or gaps in treatment. Those subjects should not be attributed to this case or to Jason’s original analysis of it.

Jason’s original observation — December 30, 2016

The original note focused on the response to the causation challenge:

As can be seen here, the exacerbation argument won the day in this case.

That is Jason’s contemporaneous description of this record. It does not mean every aggravation argument succeeds without supporting evidence.

Compare Medco Tech’s different record

The later Medco Tech equipment appeal reached a different result. The court vacated the award and ordered a new hearing on the record before it.

The difference matters more than the shared word “causation.” DTG involved loss transfer and a supported explanation of aggravation; Medco Tech involved the relationship between an accident, surgery and equipment.

The firm’s de novo terminology guide explains the broader procedural language. Neither case creates an unrestricted right to retry every adverse arbitration result in court.

For no-fault defense review, identify the type of arbitration, the evidence offered and the actual grounds for vacatur. The Legal Encyclopedia supplies broader navigation.

For review of a current file, request a Free Case Review.

Last reviewed: September 2026 — editorial source check against DTG Operations and Medco Tech. Original publication date retained; unrelated factual material removed.

Legal Context

Why This Matters for Your Case

New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.

Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.

About This Topic

Article 75 Proceedings: Judicial Review of Arbitration

CPLR Article 75 governs the judicial review of arbitration awards in New York. In no-fault practice, Article 75 petitions are the mechanism for challenging master arbitration awards — whether on grounds of irrationality, excess of power, or procedural irregularity. The standards for vacating or confirming arbitration awards are narrow but important. These articles analyze Article 75 jurisprudence and the practical considerations involved in seeking judicial review of no-fault arbitration outcomes.

81 published articles in Article 75

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Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.

New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.

If you need legal help with a article 75 matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.

Jason Tenenbaum, Personal Injury Attorney serving Long Island, Nassau County and Suffolk County

Reviewed & Verified By

Jason Tenenbaum, Esq.

Jason Tenenbaum is a personal injury attorney serving Long Island, Nassau & Suffolk Counties, and New York City. Admitted to practice in NY, NJ, FL, TX, GA, MI, and Federal courts, Jason is one of the few attorneys who writes his own appeals and tries his own cases. Since 2002, he has authored over 2,353 articles on no-fault insurance law, personal injury, and employment law — a resource other attorneys rely on to stay current on New York appellate decisions.

Education
Syracuse University College of Law
Experience
24+ Years
Articles
2,353+ Published
Licensed In
7 States + Federal

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