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Second New York Court Rules in Favor of Practice Owners Against MLMIC Policyholders

Showing how different courts can disagree, in the second decision of its kind on this issue -- Schaffer, Schonholz & Drossman LLP v. Title -- the Appellate Division, First Department, of the New York State Supreme Court, has ruled that the practice owners who paid the premiums and not the named policyholders are entitled to the proceeds of the Medical Liability Mutual Insurance Company (MLMIC) conversion.  With a split between courts in the First and Fourth Judicial Departments (see the NYSDA blog post from April 5, 2019), this issue may need to end up going all the way to the New York State Court of Appeals, which is the highest court in New York, for a final decision.  To read the complete court opinion in Schaffer, Schonholz & Drossman LLP v. Title, use the link below.