KEW GARDENS MED AND REHAB, P.C., v. COUNTRY–WIDE INSURANCE COMPANY, 52 Misc. 3d 143
Plaintiff commenced a PIP action in April 2002. In 2014, the Civil Court granted plaintiff’s motion for summary judgment and directed that the judgment for $5,255.74 in principal and $15,457.93 in statutory interest.
The Court reduced the interest based upon the inaction of the Plaintiff, saying:
Where a provider does not commence a no-fault action within 30 days of receipt of the insurer’s denial of claim form, the Insurance Department Regulations provide that statutory prejudgment interest (see Insurance Law § 5106[a] ) does not begin to accumulate until an action is commenced (11 NYCRR 65–3.9 [c] ). If an action has been commenced, statutory interest accumulates “unless the applicant unreasonably delays the … court proceeding” (11 NYCRR 65–3.9 [d] ). In this case, plaintiff took no meaningful action to prosecute the case until it served a motion to compel discovery on August 30, 2013. Plaintiff should not be rewarded for its years of inaction by receiving a windfall of interest (see V.S. Med. Servs., P.C. v. Travelers Ins. Co., 49 Misc.3d 152 [A], 2015 N.Y. Slip Op 51760[U] [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2015]; Aminov v. Country Wide Ins. Co., 43 Misc.3d 87 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2014] ).