Insurer Sues Rehab Center Over Failure to Pay Work’s Compensation Premiums

On Friday a case was filed in the Eastern District of New York by American Zurich Insurance Company against Meadow Park Rehabilitation & Health Care Center LLC, regarding Meadow Park’s purported failure to meet the provisions in their Worker’s Compensation insurance contract regarding the payment of retrospective premiums.

Meadow Park, the complaint says, is an “inpatient rehabilitation and nursing facility” located in Flushing, New York.

Worker’s Compensation coverage is required by federal and state law to ensure coverage of employees for injuries and illnesses that are a result of the employment and the responsibility of their employer to pay for the damages, including medical bills and lost wages.

The worker’s compensation coverage solution chosen by the parties was a retrospective premium, where a smaller amount is paid at the beginning of the contract year, then further amounts are assessed and due for payment during the course of the year in proportion to the number of worker’s compensation claims made and the size of those claims. The pleading argues that the retrospective assessments have been made and notification given, but the defendant has not paid those premiums.

The plaintiff is suing for breach of contract and unjust enrichment, alleging that the Meadow Park’s enrichment at the hands of the plaintiff is “against equity and good conscience.” The plaintiff is represented by Locke Lord. No counsel has been entered to date for defendants.