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Thursday, March 28, 2024

Rutland Medical alleged to have improperly billed inter-insurance exchange

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BROOKLYN, N.Y. (Legal Newsline) – A reciprocal inter-insurance exchange and its subsidiaries alleges a New York professional service corporation improperly billed it for services it is not entitled to recover.

United Services Automobile Association, USAA Casualty Insurance Co., USAA General Indemnity Co. and Garrison Property and Casualty Insurance Co. filed a complaint on Aug. 21 in the U.S. District Court for the Eastern District of New York against Rutland Medical P.C.; Marvin Moy, M.D.; Bradley Pierre; and Medical Reimbursement Consultants Inc. alleging common law fraud and other counts.

According to the complaint, the plaintiffs allege that Rutland Medical has billed the plaintiffs at least $1 million and they have paid it more than $400,000. The plaintiffs allege that the defendants misrepresented the identities of the treating providers because they were independent contractors and that Rutland is not entitled to recover to costs of their services. The plaintiffs allege service by independent contractors or non-employees are not entitled to recovery under New York's No-Fault Laws.

The plaintiffs request a trial by jury and seek a declaratory judgment that Rutland is not entitled for payment, compensatory damages in an amount to be determined at trial but no less than $403,969.63, treble damages, costs of suit, attorneys' fees plus interest and other relief the court may deem just and appropriate. They are represented by Evan Klestzick and Stuart Flamen of McDonnel Adels & Klestzick PLLC in Garden City, New York.

U.S. District Court for the Eastern District of New York case number 1:18-cv-04727-PKC-RLM

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