In re Co.

• Decision Date: 07 July 2011
• Parties: In re COUNTRYWIDE INSURANCE COMPANY, Petitioner–Appellant,v.DHD MEDICAL, P.C., Respondent–Respondent.
• Court: New York Supreme Court — Appellate Division

86 A.D.3d 431

926 N.Y.S.2d 293

2011 N.Y. Slip Op. 05864

In re COUNTRYWIDE INSURANCE COMPANY, Petitioner–Appellant,

v.DHD MEDICAL, P.C., Respondent–Respondent.

Supreme Court, Appellate Division, First Department, New York.

July 7, 2011.

OPINION TEXT STARTS HEREThomas Torto, New York, for appellant.Ruskin Moscou Faltischek, P.C., Uniondale (Matthew F. Didora of counsel), for respondent.

Order, Supreme Court, New York County (Marylin G. Diamond, J.), entered November 30, 2010, which denied the petition to stay arbitration of claims for no-fault insurance benefits and granted respondent's cross motion to dismiss the proceeding, unanimously affirmed, with costs.

Petitioner argues that respondent is a fraudulently incorporated medical services provider and therefore is not only ineligible for reimbursement of no-fault payments ( see State Farm Mut. Auto. Ins. Co. v. Mallela, 4 N.Y.3d 313, 794 N.Y.S.2d 700, 827 N.E.2d 758 [2005] ) but is also precluded from demanding arbitration pursuant to Insurance Law § 5106(b) (and the no-fault policy issued by petitioner). Contrary to this argument, the defense of fraudulent incorporation is “for the arbitrator and not for the courts” ( see Matter of Nassau Ins. Co. v. McMorris, 41 N.Y.2d 701, 395 N.Y.S.2d 149, 363 N.E.2d 700 [1977]; Matter of MVAIC v. Interboro Med. Care & Diagnostic PC, 73 A.D.3d 667, 667, 902 N.Y.S.2d 45 [2010] ). Indeed, it has been the subject of numerous arbitration proceedings ( see e.g. State Farm Mut. Auto. Ins. Co. v. Kissena Med. Imaging, P.C., 25 Misc.3d 1214(A), 2009 WL 3337597, 2009 N.Y. Slip Op. 52094(U) [2009]; Uptodate Med. Serv., P.C. v. State Farm Mut. Auto. Ins. Co., 22 Misc.3d 128(A), 2009 WL 78376, 2009 N.Y. Slip Op. 50046(U), *2 [2009] ).

We have considered plaintiff's remaining contentions and find them unavailing.