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Pension Fund is at the Center of this Case


This is a case of appeal being heard in the Supreme Court, Appellate Division and First Department. The original judgment was made in the Supreme Court of New York County and awarded $61,478.40 against the defendants.

Case Background

The plaintiff in the case provided medical malpractice liability insurance for a dental center. The premiums for the insurance policy were based on the number of outpatient visits and adjusted by a stabilization fund charge. The policy was renewed twice and at the end of three years there was a premium balance of $40,795. The plaintiff sued for these premiums and obtained a judgment on liability.

Before the damages could be assessed, the Dental Center in Nassau and the local union filed for bankruptcy protection. The plaintiff then started the instant action to recover the unpaid premiums from the pension fund and credit union. . Those two defendants appeal from a joint award that was granted on summary judgment.

The pension fund states that they had nothing to do with health benefits and that they are prohibited by law from diverting their assets to health benefits. The credit union also states that it had nothing to do with the operation of the Dental Center. Both defendants claim that the plaintiff added them as parties out of frustration of being unable to collect the premiums from the Dental Center.

Case Discussion and Decision

The Suffolk defendants in this case have made their point about not being liable for what the Dental Center owed for premiums. For this reason, the court is granting the appeal in favor of the defendants and the previous order is reversed. The case will be remitted to the Supreme Court for further proceedings.

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