Key Takeaway
Court rules that assigned medical billing payments can restore standing for no-fault insurance claims when coverage is denied due to causation disputes.
This article is part of our ongoing standing coverage, with 30 published articles analyzing standing 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.
Abruscato v Allstate Prop., 2018 NY Slip Op 07279 (2d Dept. 2018)
However, the Supreme Court should have denied that branch of the defendant’s motion which was to dismiss so much of the first cause of action as sought to recover no-fault insurance benefits for medical expenses. The defendant contends, inter alia, that the plaintiff lacked standing because he had assigned his right to no-fault insurance benefits for medical expenses to his medical providers. Although the defendant submitted evidence that the plaintiff assigned his right to no-fault benefits to two medical providers (hereinafter the assignees), the plaintiff’s evidentiary submissions showed that other medical providers had also billed him for their services.
Moreover, upon the defendant’s determination that the injury was not causally related to the motor vehicle accident, the assignees were no longer precluded from seeking payment from the plaintiff (see Hospital for Joint Diseases v Travelers Prop. Cas. Ins. Co., 9 NY3d 312, 318; Central Gen. Hosp. v Chubb Group of Ins. Cos., 90 NY2d 195, 199; Rotwein v Stancil, 15 Misc 3d 19, 21). Since there was a failure of insurance coverage rendering the plaintiff personally responsible for the medical bills (see Hospital for Joint Diseases v Travelers Prop. Cas. Ins. Co., 9 NY3d at 318; Central Gen. Hosp. v Chubb Group of Ins. Cos., 90 NY2d at 199; Rotwein v Stancil, 15 Misc 3d at 21), the plaintiff has a cause of action to recover no-fault insurance benefits for medical expenses from the defendant (see Guggenheimer v Ginzburg, 43 NY2d at 275).
__________
Free Consultation · No Fee Unless We Win
Does this apply to your situation?
Every case is different. Get a free, confidential case review from an experienced attorney who can tell you exactly where you stand.
Two things can happen to revive the EIP’s right to have standing. First, the EIP pays the billings that were sent to it. Or – Second, the insurance carrier determines the injuries are not related to the motor vehicle accident. Allstate’s counsel’s position on these cases (same counsel always) is plainly obnoxious. I am glad to see the Appellate Division bring some common sense to the plight of the EIP who is left defenseless, i.e, getting sued from the assignee medical providers and told from the insurance carrier that there is nothing they can do. Alas, there is a legal remedy.
Related Articles
- Motion seeking leave to amend the answer to seek affirmative defense of lack of standing is proper
- Assignments and business records – a deadly combination
- Standing – the Defense Applied Outside the No-Fault Arena
- Understanding Legal Standing in New York: A Comprehensive Guide for Long Island and NYC Residents
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
Standing Requirements in New York Litigation
Standing — the legal right to bring a claim — must be established at the outset of any litigation. In no-fault practice, standing issues frequently involve the validity of assignments of benefits, the corporate status of medical providers, and the capacity of parties to sue or be sued. These articles examine how New York courts analyze standing challenges and the documentary proof required to establish or contest a party's right to maintain an action.
30 published articles in Standing
Keep Reading
More Standing Analysis
Standing (favorite statutes)
New York's RPAPL 1302-a prevents homeowners from waiving standing defenses in foreclosure cases, even if not raised initially—a game-changing protection for defendants.
Mar 22, 2021
Standing (Stacey Kapeleris)
Court ruling on standing in no-fault insurance claims, assignment of benefits, and injured person's right to retake possession of medical bills.
May 9, 2020
Are all of the cards stacked in Allstate’s favor?
Understanding Allstate insurance claim denials and Box #16 independent contractor issues in NY. Expert legal guidance for Long Island practitioners.
Jan 25, 2009
Unpreserved and without merit
New York court rules on assignment of benefits standing requirements in no-fault insurance case, discussing "on file" statements and claim form requirements.
Dec 23, 2014
The Independent Contractor Defense and CPLR 3211(a)(7) Dismissal in New York No-Fault Cases
Why a statement on a no-fault claim form that services were rendered by an independent contractor supports dismissal under CPLR 3211(a)(7) in New York.
Jun 25, 2011
It is Standing Again
Retroactive assignment standing in NY: foreclosure (Countrywide v Gress) vs no-fault (Davydov v Progressive). CPLR 3211(a)(3) preservation analysis.
Dec 8, 2009Was this article helpful?
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 standing 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.
