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MATTER OF COUNTRY-WIDE INS. CO. v. BAY NEEDLE CARE ACUPUNCTURE, P.C.

651942/15, 6726, 6725.

162 A.D.3d 407 (2018)

2018 NY Slip Op 03929

In the Matter of Country-Wide Insurance Company, Appellant, v. Bay Needle Care Acupuncture, P.C., as Assignee of Rosa Corona, Respondent.

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

Decided June 5, 2018.

Respondent commenced an arbitration against petitioner seeking reimbursement of bills for health care services it had rendered to an individual injured in a motor vehicle accident. Petitioner asserted a Mallela defense (see State Farm Mut. Auto. Ins. Co. v Mallela, 4 N.Y.3d 313 [2005]), i.e., that it could withhold payment for the services because respondent was fraudulently incorporated. After a hearing, an arbitrator found...

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