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Mercury Insurance Co. appealed after the Kings County Civil Court denied its motion to dismiss Compas Medical's case (which sought to recover "assigned first-party, no-fault benefits").

Although Mercury argued that the complaint failed to state a legally sufficient basis for relief, the Appellate Term, Second Department, didn't agree. It noted that when faced with a CPLR 3211(a)(7) motion to dismiss, a court must give the pleadings a "liberal construction" and accept the allegations as true.

Since this particular complaint stated a valid cause of action, and gave Mercury notice of the transactions that Compas intended to prove, the AT2 let the complaint stand.

Was that too Mercurial?

To view a copy of the Appellate Term's decision, please use this link: Compas Med., P.C. v. Mercury Ins. Co.