Trial De Novo Rights in NY Arbitration: When Attorney Participation Preserves Your Options

Understanding Trial De Novo Rights in New York Arbitration Cases

When dealing with lower-value personal injury and no-fault insurance cases in New York, particularly in Long Island and NYC area courts, understanding your rights regarding mandatory arbitration and trial de novo demands is crucial. These procedural rules can significantly impact the outcome of your case, and proper legal representation is essential to ensure your rights are protected throughout the arbitration process.

In Nassau County, Suffolk County, Queens, Brooklyn, the Bronx, and Manhattan courts, cases valued under $6,000 are automatically referred to Part 28 arbitration. For clients throughout Long Island and the five boroughs, knowing when and how you can demand a trial de novo after an unfavorable arbitration award can mean the difference between accepting a disappointing result and having your day in court with a judge or jury.

Key Legal Analysis: B.Y., M.D., P.C. v GEICO Indemnity Co.

B.Y., M.D., P.C. v GEICO Indem. Co., 2011 NY Slip Op 50036(U)(App. Term 2d Dept. 2011)

For those who practice in the outer lying areas of New York, cases with a value of less than $6,000 are referred to mandatory Part 28 arbitration upon the filing of a Notice of Trial or Note of Issue. An issue that has been kicking around for years is what is sufficient participation at the hearing to allow the loser to file a trial-de-novo. This case discusses that issue.

“The Rules of the Chief Judge (22 NYCRR) § 28.12 (a) provides that a demand for a trial de novo “may be made by any party not in default.” A party’s failure to appear at an arbitration hearing constitutes a default (see Rules of the Chief Judge § 28.7 ). Even where a defendant has appeared by counsel at an arbitration hearing, if such appearance is “without his client[]” and the defendant’s counsel “refus to participate in the hearing,” the defendant is [*2]similarly deemed to have defaulted (Bitzko v Gamache, 168 AD2d 888, 888 ; see also Finamore v Huntington Cardiac Rehabilitation Assn., 150 AD2d 426 ). However, where, as here, a defendant’s attorney appears on behalf of his client at the arbitration hearing without any witnesses, but otherwise participates in the hearing by attempting to refute the plaintiff’s case, the defendant has not defaulted”

What This Means for Long Island and NYC Cases

This ruling has significant implications for personal injury and no-fault cases throughout Nassau and Suffolk Counties, as well as the five boroughs of New York City. The decision clarifies that merely showing up to an arbitration hearing isn’t enough to preserve your trial de novo rights – you must actively participate in the proceedings.

Active Participation Requirements

The court’s decision establishes clear guidelines for what constitutes sufficient participation to avoid being deemed in default. For attorneys representing clients in Long Island and NYC arbitrations, this means:

• Simply appearing at the hearing without participating is insufficient
• Refusing to participate while present constitutes a default
• Attempting to refute the opposing party’s case, even without witnesses, preserves trial de novo rights
• The quality of participation matters more than the presence of witnesses

Strategic Implications for Personal Injury Cases

For personal injury victims in Nassau County, Suffolk County, and the NYC area, this ruling provides important protection. Even if your attorney appears at arbitration without witnesses or extensive preparation, as long as they actively engage with the arbitration panel and attempt to challenge the opposing party’s case, your right to demand a new trial remains intact.

This is particularly important in no-fault insurance disputes, where insurance companies may try to argue that minimal participation should be deemed a default to prevent plaintiffs from seeking trial de novo after an unfavorable arbitration award.

Understanding the Broader Context of Part 28 Arbitration

When Cases Go to Arbitration

In the Second Department, which includes Long Island and several NYC boroughs, the mandatory arbitration system serves to streamline lower-value cases. However, this system is designed to complement, not replace, your fundamental right to trial. The arbitration process should be viewed as a preliminary step, with trial de novo serving as an important safeguard.

The Default Standard and Its Consequences

Understanding what constitutes a default is crucial because a party in default cannot demand trial de novo. This means that without proper legal representation that understands the participation requirements, you could forfeit your right to a trial even if the arbitration award is unreasonably low.

Frequently Asked Questions About Trial De Novo Rights

What is trial de novo?

Trial de novo means a completely new trial, where the arbitration award is set aside and the case is heard fresh before a judge or jury as if the arbitration never occurred.

How long do I have to demand trial de novo after an arbitration award?

Generally, you must file your demand for trial de novo within 30 days of the arbitration award. Missing this deadline can forfeit your rights permanently.

Can I demand trial de novo even if I don’t have witnesses for arbitration?

Yes, according to this decision, lack of witnesses at arbitration doesn’t prevent you from demanding trial de novo, as long as your attorney actively participated in the proceedings.

What happens if my attorney doesn’t show up to arbitration?

Failure to appear at arbitration constitutes a default, which would prevent you from demanding trial de novo. This highlights the importance of having dedicated legal representation.

Does this ruling apply to all New York counties?

This Appellate Term decision is binding in the Second Department, which includes Nassau and Suffolk Counties as well as several NYC boroughs. Other departments may have similar rules but could vary in application.

Protecting Your Rights in Arbitration Proceedings

The key takeaway from this case is that proper legal representation is essential even in seemingly routine arbitration proceedings. What might appear to be a simple hearing can have significant consequences for your ability to pursue your case further.

If you have a personal injury case or no-fault insurance dispute in Nassau County, Suffolk County, Queens, Brooklyn, the Bronx, or Manhattan that’s headed to arbitration, having an attorney who understands these procedural requirements is crucial for protecting your rights.

Get Expert Legal Representation for Your Case

Don’t let procedural missteps cost you your right to a fair trial. At the Law Office of Jason Tenenbaum, we have extensive experience handling personal injury and no-fault insurance cases throughout Long Island and New York City. We understand the intricacies of Part 28 arbitration and will ensure your trial de novo rights are fully protected.

Whether you’re dealing with a car accident case, slip and fall injury, or no-fault insurance dispute, our experienced legal team will fight for your rights at every stage of the process, from initial arbitration through trial if necessary.

Contact us today for a free consultation: (516) 750-0595

We serve clients throughout Nassau County, Suffolk County, Queens, Brooklyn, the Bronx, and Manhattan. Don’t let insurance companies take advantage of procedural technicalities – call now to protect your rights and get the compensation you deserve.

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