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IN RE MEDICAL SOCIETY, THE STATE v. LEVIN

Appellate Division of the Supreme Court of New York, First Department.
Feb 7, 2001
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Appellants must, in promulgating regulations under the "no fault laws" (Insurance Law article 51), serve the legislative purpose of protecting the "right of an injured party to prompt and full compensation" (see,Gurnee v. Aetna Life Cas. Co., 55 N.Y.2d 184, 193, cert denied, 459 U.S. 837). Construction of the State Administrative Procedure Act (SAPA), as of any statute, should be to aid in effecting the legislative purpose (see, Matter of Am. Tr. Ins. Co. v. Corcoran, 105 A.D.2d 30, 32 , affd 65 N.Y.2d 828), which, as concerns the SAPA, is to ensure that regulators will adopt rules "for the purely practical purpose of attempting to make a legislative program work" (see, Matter of New York State Health Facilities Assn. v. Axelrod, 77 N.Y.2d 340, 349). In light of these principles, we agree with article 78 court that appellants incorrectly determined that the class of "regulated persons" (see, SAPA § 202[5][b][iii] and 202-a[3][c][i]), includes only insurers and self insurers. Further, costs to regulated persons that are virtually certain to be incurred immediately upon implementation of the regulations are not "speculative" (cf., Matter of Lake George Chamber of Commerce v. New York State Dept. of Health, 205 A.D.2d 93, 95). Accordingly, we agree that appellants are in violation of SAPA §§ 202, 202-a and 202-b in the five instances identified by Supreme Court. We have considered appellants' remaining arguments and find them unavailing.

THIS CONSTITUTES THE DECISION AND ORDER OF SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.