Released on: May 15, 2008, 2:17 pm

Press Release Author: Penman Ship PR

Industry: Law

Press Release Summary: The defendants in the case of Nyack Hospital v. GMAC were
delighted in the New York Court of Appeals decision which stressed that studying
certain aspects of a statute instead of the entire statute would make chaos in the
PIP system.

Press Release Body: United States of America (Press Release) May 7, 2008 -- The
Court of Appeals rendered a decision in Nyack Hospital v. GMAC, which was favorable
to the insurers of the State of New York. Freiberg & Peck represented the
Respondent.

The central issue to the case being argued was the priority of PIP payments under
the No-Fault Regulations. Plaintiff argued that pursuant to the Priority of Payments
section 11 NYCRR 65-3.15 \"claims\" must be paid in the order in which they are
received. Since that section does not speak of \"proof of claim\" plaintiff argued
that when a bill, which would ultimately exhaust a PIP policy, is presented to a
carrier, then the carrier has a duty to keep in reserve all monies demanded by the
provider if a verification request is sent on the bill.

Defendant/respondent argued that to narrowly read the Priority of Payments section,
without reading the Statute as a whole, would cause chaos with the entire PIP
scheme. Defendant also argued that a reading of the entire regulation, particularly
the sections regarding payment or denial of claim 65-3.8 (a)(1) and verification
requests 65-3.5, mandate that claims can only be delayed when verification is needed
to prove the claim. Thus, plaintiff\'s narrow reading of the aforementioned section
would frustrate this purpose.

The Court in a unanimous decision agreed with defendant\'s argument. Further, and
more importantly, the Court agreed with defendant\'s position that it is improper for
Courts to rely on individual sections of the regulation, without taking into
consideration the entire regulation as a whole.

Freiberg & Peck, LLP is a mid-sized insurance defense litigation firm committed to
providing its clients with high quality and cost effective legal services. We are
strategically located in mid-town Manhattan, a short distance from all the courts.
We provide our clients with optimal solutions to routine as well as high-profile
litigation matters, counsel on complex legal dilemmas and unexpected legal crisis.
At Freiberg & Peck, LLP, our mission is to provide our clients with the highest
quality, zealous and innovative legal representation, without losing sight of rapid
client response and continuous feedback. We fully appreciate the importance of
customer service and we strive to exceed our clients\' expectations.

Manhattan Office:

For All Correspondence:
49 West 37th Street
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New York, New York 10018
t. 212.252.9550
f. 212.252.9552

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t: 516.650.8886


Web Site: http://www.fplawfirm.com

Contact Details: 49 West 37th Street
9th Floor
New York, New York 10018
telephone 212-252-9550
fax 212-252-9552