Judge Katherine Levine
The court considered the issue of whether interest began to accrue in no-fault claims actions at the time of filing or service of the summons and complaint, and if the tolling of interest provisions impacted such determination. Provider All Boro claimed interest accrued on the date of filing, arguing New York City Civil Court Act §412 was inapplicable as interest did not accrue from the inception of the action under the No Fault Law, but 30 days after the claim or bill was submitted to the insurer. Insurer GEICO argued §412 governed as interest accrued at the inception, thus the date of the service should trigger the accrual of interest. The court found the matter fell within the scope of §412, and a medical service provider was entitled to interest only after service was completed. An insurer’s failure to pay or deny a claim within 30 days carried significant consequences. Plaintiffs were under a similar duty to proceed expeditiously to avoid rewarding a recalcitrant plaintiff with a windfall of punitive interest payments. All Boro waited over 30 days after it received a denial to initiate a no fault action, triggering the tolling of interest provisions, so that interest accrued on the date service of the summons was completed.
