Key Takeaway
New York court clarifies that severance in no-fault insurance cases requires specific NF-10 form evidence, not just multiple accident dates, changing post-2016 requirements.
Understanding Severance Requirements in No-Fault Insurance Cases
The landscape of no-fault insurance litigation has evolved significantly, particularly regarding when courts will sever claims involving multiple accidents. A recent appellate decision has clarified the specific evidence required for severance, moving beyond the simple fact that claims arose from different accident dates. This development has important implications for how courts evaluate severance motions and whether denying such motions without proper evidence constitutes an abuse of discretion.
The key issue revolves around what documentation defendants must present to justify separating claims, particularly when dealing with multiple vehicle accidents occurring on different dates. Understanding these requirements is crucial for both providers seeking payment and insurance companies defending against no-fault insurance claims.
Jason Tenenbaum’s Analysis:
Unique Physical Therapy, PT, P.C. v Global Liberty Ins. Co. of N.Y., 2021 NY Slip Op 50323(U)(App. Term 2d Dept. 2021)
“To the extent that defendant cites Premier Surgical Servs., P.C. v GEICO Gen. Ins. Co. (65 Misc 3d 140, 2019 NY Slip Op 51704 ) to support the opposite conclusion, it should not be relied upon for the proposition that severance is warranted solely on the ground that no-fault claims arose out of multiple car accidents on different dates. The record in Premier demonstrated that the denial of each claim was based on the particular assignor’s failure to appear for scheduled independent medical examinations and, while omitted from the decision, that fact was the basis for this court’s determination.”
So now you see the post 2016 formula necessary to obtain severance. Does this mean that when a Defendant does not present this proof and the court severs the claims, that is now an abuse of discretion?
Key Takeaway
Courts now require specific evidence beyond multiple accident dates to justify severance in no-fault cases. The decision clarifies that defendants must demonstrate individual circumstances for each claim denial, such as failure to appear for examinations, rather than relying solely on different accident dates. This raises questions about whether granting severance without such proof constitutes an abuse of discretion.
