Mauro Viskovic, Esq. published an article in The CPA Journal.

Beware the Working Capital Adjustment Trap

Welcome, Lisa Giunta-Popeil, Esq.!

By Lisa Giunta-Popeil
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Lisa Giunta-Popeil, Esq. is pleased to announce that she has joined Weiss Zarett Brofman Sonnenklar & Levy, P.C.  Lisa brings with her over ten years of general and commercial litigation experience in both federal and state courts in New York, including a clerkship for a U.S. District Court judge in the Eastern District of New York.  She has expertise in handling a wide range of matters, including contract disputes, shareholder disputes, commercial arbitrations, business tort actions, creditor’s rights litigation and securities fraud litigation.

Lisa shares Weiss Zarett’s commitment to providing a thoughtful and comprehensive approach to litigation.  This includes open and candid communication with clients, exploring all potential avenues for the resolution of disputes and considering all possible legal claims and defenses.  The Weiss Zarett litigation team will zealously advocate on behalf of their clients, whether in the courtroom or at the negotiation table.

Weiss Zarett is a prominent and well-respected Long Island-based firm known for assisting members of the healthcare industry and general business clients.  In the healthcare field, Weiss Zarett represents physicians and physician groups, other healthcare providers and health-related businesses with a wide array of legal services including corporate and transactional matters, civil and administrative litigation, healthcare regulatory issues, governmental and commercial payor audits, bankruptcy, and commercial real-estate transactions.  Weiss Zarett brings decades of experience to this complex and ever-changing area of practice. 

Equally experienced outside of the healthcare industry, Weiss Zarett advises and represents businesses and business owners in corporate and commercial matters, business disputes, employment practice, commercial, bankruptcy and commercial real estate and commercial landlord and tenant litigation, creditor’s rights, financing, documenting secured transactions and all phases of commercial real-estate transactions.

Lisa is excited to be joining Weiss Zarett and looks forward to providing you with a broad array of litigation services.  Please call us to see how we can help you with your legal needs. 

ATTORNEY ADVERTISING: PRIOR RESULTS DO NOT GUARANTEE FUTURE OUTCOMES.

JOSHUA SUSSMAN ELEVATED TO PARTNER

By Joshua D. Sussman, Esq.
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Weiss Zarett Brofman Sonnenklar & Levy, P.C. is pleased to announce that Joshua Sussman has been promoted to Partner of the Firm. Since joining the firm as Senior Counsel in early 2020, Mr. Sussman has been essential to success and operations of the Firm’s Litigation Department. Mr. Sussman is lead attorney on many of the Firm’s commercial disputes, while also taking a critical role in managing and developing Weiss Zarett’s Litigation Department. Mr. Sussman handles complex commercial litigation pending before federal and state courts and in arbitration about an array of actions, including proceedings between shareholders, partners, or members of closely held companies, lockouts and valuation disputes, breaches of fiduciary duties, breaches of sale agreements, restrictive covenant litigation, and commercial real estate disputes. While Mr. Sussman is a talented and tenacious litigator, he has also proven exceptionally valuable to the Firm’s clients by helping to resolve their issues in a practical manner before they become costly litigations. 

On behalf of the Firm, David Zarett said, “Since the day he walked in the door, Josh has exceeded all expectations and it is my honor and privilege to call him a Partner.” “Josh’s passion for the law, his dedication to the clients and his ability to collegially work with the other attorneys in the Firm, makes his elevation to Partner very much deserved,” added Michael Brofman.

“Joining Weiss Zarett was the best decision of my career,” Josh added. “The Firm and the Partners have provided me with a unique opportunity to develop as an attorney and a leader and to work with exceptional clients and professionals on an array of challenging legal issues. I look forward to continuing my professional growth here and being an integral part of the future of the Firm.”

Please join us in congratulating Josh on such a significant milestone in his professional career.

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DOCTORS WIN BIG IN THE COURT OF APPEALS – COURT SETTLES DISPUTE OVER MLMIC SALE PROCEEDS

By Michael J. Spithogiannis, Esq.
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The New York Court of Appeals, by a unanimous bench, decided a question that has been highly contested throughout New York State emanating from the sale and demutualization of Medical Liability Mutual Insurance Company (“MLMIC”), a mutual insurance company in the business of issuing medical malpractice policies to doctors and other medical professionals throughout the State.

The Court of Appeals decided the issue in favor of the policyholders – the medical professionals.  Among the cases decided was Columbia Memorial Hospital v. Hinds, where Weiss Zarett represented Dr. Marcel Hinds, and Seth A. Nadel, Esq. argued the case to the Court of Appeals on April 20, 2022.

When MLMIC was sold in 2018, the sale generated approximately $2.5 billion.  The question became: who was entitled to this money – the so-called cash consideration?  Employers – hospitals and medical practices – argued that they, not the policyholders, were entitled to the money, because they paid the premiums.  Their argument was simple:  they paid the premiums, they are entitled to the money.  Policyholders argued that under the governing provision of the Insurance Law, they were entitled to the money; employers merely paid the premiums because they had agreed to under their employment agreements.  Litigation ensued.  

The Court of Appeals determined that under New York’s Insurance Law the employee is the policyholder and an owner of the company, and that, absent contrary terms in an employment contract, insurance policy, or separate agreement, the employee – not the employer – is entitled to the sale proceeds.  

The Court of Appeals soundly rejected the employers’ primary argument that they are entitled to the proceeds simply because they paid the premiums.  The Court was clear:  insurance premiums were not paid by employers gratuitously, but because they were contractually obligated to do so under employment agreements.  Moreover, premiums were paid for the cost of coverage only, not for an ownership interest in MLMIC.  Under the Insurance Law, MLMIC was owned by the policyholders, and there was nothing unjust or inequitable about paying them the cash consideration.

Almost four years after MLMIC’s demutualization, and against a backdrop of conflicting decisions among New York courts, the Court of Appeals has conclusively settled the issue.

A copy of the decision from the Court of Appeals may be found here.

Weiss Zarett represents numerous physician-policyholders in MLMIC disputes, as well as a variety of other legal matters affecting physicians, medical practices, and health-related businesses. If you have any questions about the MLMIC demutualization, please reach out to David A. Zarett, Esq. at dzarett@weisszarett.com or 516-627-7000.

Weiss Zarett Brofman Sonnenklar & Levy, P.C. is a Long Island law firm providing a wide array of legal services to the members of the health care industry, including corporate and transactional matters, civil and administrative litigation, healthcare regulatory issues, bankruptcy and creditors’ rights, and commercial real estate transactions.

ATTORNEY ADVERTISING: PRIOR RESULTS DO NOT GUARANTEE FUTURE OUTCOMES.