Larkin Farrell LLC is pleased to share an important appellate win on behalf of our client, Hackensack Surgery Center, in a long-running no‑fault insurance dispute. On November 6, 2024, the Supreme Court, Kings County, granted our motion to renew and reargue, reversing an earlier order that had struck our client’s complaint. The Appellate Division, Second Department has now affirmed that ruling in full.

Background of the Case

This case began when our client commenced a de novo action under Insurance Law § 5106(c) to resolve a claim for no‑fault insurance benefits. The defendant, American Transit Insurance Company, later asked the court to strike the complaint under CPLR 3126, arguing that our client had not complied with a prior disclosure order.

Although the trial court initially granted that request in August 2023, we moved for leave to renew and reargue after demonstrating that our client had not acted willfully or in bad faith.

The Court’s Ruling

Both the Supreme Court and the Appellate Division agreed that striking the complaint was unwarranted. The appellate panel reiterated a core principle of New York law: while courts have broad discretion in managing discovery, striking a pleading is a severe sanction that is only justified when a party’s noncompliance is clearly intentional.

Here, the record showed no such conduct. As a result, the complaint was reinstated, and the case will proceed on its merits—consistent with New York’s strong public policy favoring the resolution of disputes based on their substance, not procedural missteps.

What This Means Moving Forward

This decision helps ensure that litigants receive a fair opportunity to be heard and that discovery disputes are addressed proportionately. We look forward to continuing to advocate for our client as the matter progresses.

At Larkin Farrell LLC, we remain committed to delivering practical, strategic representation in complex insurance and healthcare reimbursement matters. We are proud to have secured this outcome for our client.