Judge Harriet Thompson
Provider Stracar Medical Services sought to recover no-fault benefits. Insurer Nationwide moved for summary judgment arguing Stracar failed to submit proper verification of the claim or attend two scheduled examinations under oath. It also argued medical services must be denied for the fraudulent procurement of the insurance policy by the assignor. Stracar argued a sister state consent decree terminating the policy ab initio was not binding on it. It alleged a judgment in a prior action against the assignor could not be used to estop the assignee from raising matters determined there in a subsequent action where the assignment was made before initiation of the action against the assignor. The court noted New York law prohibited termination of an insurance policy retroactively, ruling Nationwide’s termination action ab initio was void. Yet, the assignor agreed in a stipulation in a dismissal order in Virginia to void the policy ab initio. Thus, the sister-state dismissal order was entitled to recognition, and was the equivalent of "interstate res judicata." Hence, assignor had no rights to assign Stracar, and as there was no policy in effect on the date of the accident, any claims by Stracar against Nationwide were void. Nationwide’s motion was granted.
