LOYALTY PHYSICAL THERAPY v. PERMANENT GENERAL ASSURANCE CORP (2022)

ORDERED that the order is reversed, with $30 costs, and defendant's motion for, in effect, summary judgment dismissing the complaint is granted.

Plaintiff Loyalty Physical Therapy, P.T., P.C. (Loyalty) commenced this action against Permanent General Assurance Corp. (Permanent General) to recover assigned first-party no-fault benefits for services that Loyalty had provided to its assignor, Ernest Frazier, who had allegedly sustained injuries in a motor vehicle accident on November 3, 2013. After issue was joined, Permanent General commenced a declaratory judgment action in the Supreme Court, New York County, against, insofar as relevant here, Loyalty and Ernest Frazier, which parties failed to appear or answer in the Supreme Court action. By order entered December 3, 2015, the Supreme Court granted, on default, Permanent General's motion for a default judgment against, among others, Loyalty and Ernest Frazier.

Thereafter, Permanent General moved in the Civil Court for, in effect, summary judgment dismissing the complaint on the ground that the present Civil Court action is barred under the doctrine of res judicata, as the instant claims had been fully litigated in the Supreme Court. Loyalty opposed the motion. Permanent General appeals from an order of the Civil Court entered March 1, 2019 denying Permanent General's motion.

For the reasons stated in North Valley Med., P.C., as Assignee of Ernest Frazier v Permanent Gen. Assur. Corp. (––– Misc 3d ––––, 2022 NY Slip Op –––– [appeal No. 2019-499 K C], decided herewith), the order is reversed and defendant's motion for, in effect, summary judgment dismissing the complaint is granted.

ALIOTTA, P.J., WESTON and TOUSSAINT, JJ., concur.