Appellate Term Upholds Decision in Carothers Case-Major Win for the New York Auto Insurance Industry

New York, New York (PRWEB) July 11, 2013

After years of litigation, the Appellate Term, Second Department upheld a 2008 jury verdict that co-lead counsel Vincent Gerbino calls a “major win over insurance fraud”. The verdict expunges approximately $20 million in pending claims against New York automobile insurers and self-insurers.

In re Andrew Carothers M.D., P.C. v. Insurance Companies Represented by Bruno Gerbino and Soriano, LLP, the Appellate Term has upheld the trial verdict and judgment. The original jury was unanimous in favor of the defense that addressed the “Prohibition Against the Corporate Practice of Medicine” principles established in the landmark decision of State Farm v. Mallela; (In Re: State Farm Mut. Auto. Ins. Co. v Mallela 372 F3d [2d Cir 2004]) in which Bruno Gerbino & Soriano was significantly involved. The Appellate Term affirmed the core jury finding from the original trial that the medical professional corporation was ineligible to collect first-party no-fault benefits. (In Re Andrew Carothers, M.D., P.C. as Assignee of Audrey White v. Progressive Insurance Company No. 2011-715 RI C)

The appeal was successfully argued in part by Vincent F. Gerbino of Bruno, Gerbino & Soriano, LLP.

Craig Bruno, of Bruno, Gerbino & Soriano, LLP, noted that in 2006, based upon numerous Special Investigative Unit investigations, their clients began to seek the testimony of Dr. Carothers. The evidence made clear that Carothers was the “paper” owner of the facilities and that they were actually owned by a layman, Hillel Sher. In the 2-1 decision, Judges Rios and Aliotta, writing for the majority, agreed that there was compelling evidence that Carothers M.D., P.C. was fraudulently incorporated and that Dr. Carothers was not the true owner of the professional corporation.

“The Appellate Term decision is a significant step in the fight against no-fault insurance fraud,” said Mr. Bruno. “By emphasizing the requirement that healthcare providers be lawfully incorporated, managed and licensed, this decision should cut down on insurance fraud to the benefit of insurers and policyholders alike.”

In addition to Mr. Gerbino, the Carothers defense team was led by Craig Freiberg of Freiberg & Peck, LLP and Barry Levy of Rivkin Radler. The 2008 trial resulted in the first-ever verdict on the issue of Mallela violations and fraudulent incorporation in the State of New York and remains the only such verdict to-date.

Founded in 1996, Bruno, Gerbino & Soriano, LLP is a strategically focused law firm headquartered in Melville, New York and an office in Ramsey, New Jersey. For more information about the firm, go to http://www.bgslaw-ny.com.

Read the full story at http://www.prweb.com/releases/2013/7/prweb10920466.htm