New York and Presbyterian Hospital Wins Summary Judgment Against United States

On February 17, 2021, Skadden secured a grant of summary judgment in favor of the New York and Presbyterian Hospital and defeated the United States’ cross-motion for summary judgment in the Court of Federal Claims. The hospital sought indemnification for money it paid to settle claims that former medical residents asserted against the hospital in another case for the amount of Federal Insurance Contributions Act (FICA) taxes the hospital had deducted and paid to the United States on the residents’ behalf. After considering cross-motions for summary judgment, the court adopted the hospital’s interpretation and application of the statutory provision, concluding that the residents’ suit was for the amount of a FICA tax refund and that, as a result, the hospital is entitled to indemnification by the United States under Section 3102(b).