State Farm cannot dispute PIP benefits with provider, and subpoeana patient records, without notice to injury victims
State Farm filed a "complaint for discovery" against Broe Rehabilitation, seeking to force the company to turn over to it the medical records of State Farm insureds who had received treatment at Broe. State Farm also sought to take the testimony of treatment providers under oath. State Farm argued that under the No Fault Act, it was entitled to obtain these records to investigate fraud, and that it was not obligated to inform the involved patients or allow them to intervene to justify the care provided.
The Appeals Court noted that Broe had previously lost a battle with Allstate, which had alleged fraudulent conduct by Broe, and the three judges agreed that under the No Fault Act, State Farm enjoyed "standing" to demand patient/insured records and information from Broe. Nevertheless, it also argued that the patients involved must be provided with notice of the proceedings and an opportunity to participate in the litigation investigating the care they received.