Key Takeaway
Court finds excessive interest calculation in no-fault case affects attorney fees under 11 NYCRR 65-4.6, highlighting importance of proper interest calculation periods.
Understanding Interest Calculations and Attorney Fees in No-fault Insurance Cases
No-fault insurance disputes often involve complex calculations of statutory interest and attorney fees. When courts award interest on overdue medical bills and other benefits, the precise calculation period can significantly impact the total amount owed. This becomes particularly important because New York’s no-fault regulations tie attorney fee calculations directly to the amount of accrued interest awarded.
The relationship between interest calculations and attorney fees creates a cascading effect: when interest is calculated incorrectly, it can lead to excessive attorney fee awards as well. This interconnected system requires careful attention to established precedent regarding proper calculation periods.
Jason Tenenbaum’s Analysis:
Optimal Well-Being Chiropractic, P.C. v MVAIC, 2014 NY Slip Op 51861(U)(App. Term 2d Dept. 2014)
“The judgment that was subsequently entered pursuant to the order entered April 20, 2012 awarded plaintiff, among other things, interest and attorneys’ fees. The interest awarded was calculated at the rate of two percent per month from July 6, 2010 through the date of entry of the judgment, July 16, 2012. However, these dates do not comport with the dates to be used for the calculation of interest as set forth in LMK Psychological Servs., P.C. v State Farm Mut. Auto. Ins. Co. (12 NY3d 217 ) and East Acupuncture, P.C. v Allstate Ins. Co. (61 AD3d 202). Consequently, the amount of interest awarded is excessive. Moreover, in this case, as the amount of attorneys’ fees is dependent upon the accrued interest awarded (11 NYCRR 65-4.6 ), the amount of attorneys’ fees awarded is likewise excessive.”
The interest toll and the concomitant attorney fee issue.
Key Takeaway
Courts must carefully follow established precedent when calculating interest periods in no-fault cases. Incorrect interest calculations don’t just affect the interest award itself—they create a ripple effect that can render attorney fee awards excessive as well, since fees are often tied to the total amount of accrued interest under New York’s regulatory framework.
Legal Update (February 2026): Since this post’s publication in 2015, New York’s no-fault regulations, including 11 NYCRR 65-4.6 governing attorney fee calculations, may have been subject to amendments or clarifying guidance. Interest calculation methodologies and their relationship to attorney fee awards under the no-fault law may have evolved through regulatory updates or subsequent court decisions. Practitioners should verify current provisions of 11 NYCRR 65-4 and review recent case law to ensure compliance with any modified calculation standards or procedural requirements.
