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Assignment to Factoring Company Does Not Preclude Provider Suit

Motor Vehicle Litigation / April 28, 2023

Factoring companies provide financing to businesses with cash flow issues by purchasing outstanding invoices at a discounted rate. In exchange for sums paid by the factoring companies, medical providers assign them their rights to bring first-party lawsuits seeking payment of the outstanding invoice balances. When the medical provider then files a reimbursement claim against a no-fault insurer, the issue becomes whether or not the medical provider was the real party in interest or had standing at the time the action was filed.

Binding (versus persuasive) authority refers to cases, statutes, or regulations that a court must follow. In C-Spine Orthopedics, PLLC v Allstate Insurance Company, the Court was compelled to follow the binding precedent of C-Spine I given the facts and issues presented largely paralleled each other. As a result, despite what would appear to be (at least partially) a lawsuit for the benefit of the factoring company, C-Spine was held to be legally proper.

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