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This article is part of our ongoing attorney fee coverage, with 21 published articles analyzing attorney fee issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
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)
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“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.
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Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
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Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
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