Valley Psychological, P.C. v. Liberty Mutual Insurance
Plaintiff, Valley Psychological, P.C., provided psychological services to a woman involved in a motor vehicle accident, with claims assigned to plaintiff and covered by defendant, Liberty Mutual Insurance. Defendant denied these claims more than 30 days after receipt, leading plaintiff to file a commercial claim. Defendant asserted a provider fraud defense, alleging improper supervision by plaintiff's principal psychologist. Both City Court and County Court dismissed the claim based on the fraud defense, ruling that the untimely denial did not preclude this defense. However, this Court reversed, holding that defendant's untimely denial did preclude the fraud defense, as it pertained to excessive treatment rather than a strict lack of coverage. The matter was remitted to the City Court of the City of Albany to determine the judgment amount in plaintiff's favor.