Joseph Onorato, M.D., P.C. v Bruck

Holding The Appellate Division reversed the lower court’s judgment, holding that the plaintiff failed to establish a prima facie entitlement to summary judgment because the defendants, as policyholders, did not assign their rights to the demutualization proceeds. The court further granted the defendants’ cross-motion for summary judgment, declaring that the plaintiff is not entitled to the proceeds from the insurance company’s conversion to a stock company.

The court’s words

when an employer pays premiums to a mutual insurance company to obtain a policy of which its employee is the policyholder, and the insurance company demutualizes, absent contrary terms in the contract of employment, insurance policy, or separate agreement, the policy holder is entitled to the proceeds from the demutualization

2026 NY Slip Op 05294, at the official text

the plaintiff failed to establish that the defendants assigned their rights to the proceeds from MLMIC's demutualization to the plaintiff

2026 NY Slip Op 05294, at the official text

the defendants established their prima facie entitlement to judgment as a matter of law dismissing the first and third causes of action insofar as asserted against them

2026 NY Slip Op 05294, at the official text