Insurance companies in New York continue to expend considerable time and effort to fight no-fault automobile insurance fraud. Toward that end, one of the most effective tools is the filing of lawsuits in federal court against health care providers who have received payment for services they contend they have provided to injured policyholders. As has been noted before in this column, carriers claim that the payments were wrongfully paid due to the improper conduct of the health care providers and assert a broad range of causes of action to recover the monies, including under the federal Racketeer Influenced and Corrupt Organizations Act (RICO),1 which authorizes private civil causes of action for fraud to be brought against corrupt organizations, and common law theories of fraud and unjust enrichment, among others.2
Recently, defendants in these actions have responded by seeking to compel arbitration. They base their arguments on policy language, state regulations, and the Federal Arbitration Act (FAA).3 Generally speaking, the federal district courts in New York that have been faced with this issue have refused to compel arbitration and have permitted the insurers’ lawsuits to proceed in court.4
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