Key Takeaway
Analysis of Country-Wide Ins. Co. v. Dejean regarding declaratory judgment venue rules and EUO timing requirements in NYC no-fault cases.
Declaratory judgment actions in no-fault insurance cases present unique procedural challenges, particularly when dealing with municipal defendants like New York City. These actions often arise when insurance carriers seek court declarations regarding their obligations to pay benefits or their right to deny claims based on alleged violations of policy terms or statutory requirements.
The timing of examination under oath (EUO) demands and proper venue selection are critical considerations that can make or break a case. Insurance carriers must navigate strict deadlines while ensuring their lawsuits are filed in the correct jurisdiction. When these procedural requirements aren’t met properly, even meritorious cases can face dismissal.
Jason Tenenbaum’s Analysis:
Country-Wide Ins. Co. v. Dejean, 2017 NY Slip Op 30752(u)(Sup. Ct. NY Co. 2017)
I have not had to deal with one of these in awhile. Also, unless you are sending out EUO letters within 60 days of the loss (C-wide is not), an action for the failure to attend an EUO will plainly not lie against NYC. I also tend to wonder if a DJ action that fails to allege with some type of factual allegation that the letters are timely relative to the billing has even stated a cause of action.
This case is interesting because the acts forming the loss occurred in Brooklyn. The insurance carrier is based out of NY County. The city tries to apply the portion of the unconsolidated law mandating that venue lie in the county where the activities occurred underlying the cause of action. The Court here correctly held that since this is a breach of contract action and the breach occurred in Manhattan, jurisdiction is properly laid in New York County.
Key Takeaway
This decision reinforces that proper venue in declaratory judgment actions depends on where the breach of contract occurred, not where the underlying accident happened. Additionally, insurance carriers must comply with strict timing requirements for EUO demands when pursuing actions against municipal defendants, highlighting the importance of meticulous procedural compliance in no-fault litigation.
