Surf’s Up: Medical Provider Claims Rise and Fall with the Waves of the Insured Plaintiffs’ Claim

Medical providers have no independent cause of action against insurers for the recovery of PIP benefits. Here, the Defendant filed numerous motions to compel and motions for dismissal due to repeated discovery violations of the insured Plaintiffs. The Circuit Court dismissed the entire lawsuit with prejudice as a result of these repeated violations, including the intervening medical provider’s claim. The Court of Appeals affirmed that the Circuit Court’s dismissal was proper and that a medical provider’s claim is derivative of the insured. The medical provider’s claim rises and falls with the insured’s claim as a result. The medical provider’s recourse for its right to recovery was against the insured. This case illustrates the importance of the persistent pursuit of discovery, not just for the defense of the insured’s claim, but for the defense of derivative provider suits as well.

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