Key Takeaway
New York court imposes $1000 sanctions on law firms for failing to timely withdraw settled no-fault insurance appeal, highlighting procedural requirements.
This article is part of our ongoing bad faith coverage, with 16 published articles analyzing bad faith 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.
Longevity Med. Supply, Inc. As Assignee of Osmanli Tamezan v American Tr. Ins. Co., 2015 NY Slip Op 76854(U)(App. Term 2d Dept. 2015)
Appellant Longevity Medical Supply, Inc. as Assignee of Osmanli Tamezan, having appealed to this court from an order of the Civil Court of the City of New York, Queens County, dated August 15, 2012, and appellant and respondent having attended a Civil Appeals Management Program (CAMP) conference on October 25, 2012, and appellant having perfected the appeal on March 7, 2013, and respondent having filed its brief on March 22, 2013, the appeal was noticed for a submission calendar on January 7, 2015. On January 26, 2015 a Stipulation Withdrawing Appeal, signed both parties (signed by respondent’s attorney on January 20, 2015) was filed with this court. An examination of the records of the Civil Court having revealed that the underlying action was settled on or before July 2, 2014, more than 6 months earlier. By order to show cause dated April 16, 2015, counsel for the parties were directed to show cause why an order should or should not be made and entered imposing such sanctions as the court may deem appropriate pursuant to the Rules of the Appellate Terms, Second Department (22 NYCRR) § 730.3 (f) upon the parties or their respective counsel.
Upon the order to show cause and the papers filed on behalf of respondent only, it is
ORDERED that within 20 days after service of a copy of this decision and order on motion upon it, The Rybak Firm, PLLC, counsel for appellant, shall pay a sanction in the sum of $1000 to the Lawyers’ Fund for Client Protection of the State of New York (see Rules of the Chief Administrator of the Courts §§ 130-1.1; 130-1.3); and it is further,
ORDERED that within 20 days after service of a copy of this decision and order on motion upon him, Netanel Benchaim, Esq., of counsel to the Law Office of Daniel J. Tucker, counsel for respondent, shall pay a sanction in the sum of $250 to the Lawyers’ Fund for Client Protection of the State of New York (see Rules of the Chief Administrator of the Courts §§ 130-1.1; 130-1.3); and it is further,
ORDERED that the Clerk of this Court, or his designee, shall serve a copy of this decision and order on motion upon each counsel by regular mail; and it is further,
ORDERED that within 10 days after payment of their respective sanctions, counsel shall each file proof of payment of its sanction with the Clerk of this Court.
The rules of this court provides, in relevant part, that “f an appeal or the underlying action or proceeding is wholly or partially settled … the parties or their counsel shall immediately notify the court. Any attorney or party who, without good cause shown, fails to comply with the requirements of this subdivision shall be subject to the imposition of costs and/or sanctions as the court may direct” (Rules of the Appellate Terms, Second Department § 730.3 ).
Under the circumstances, the failure of The Rybak Firm, PLLC, to promptly advise this Court that a settlement had been reached and that the appeal should not be calendered warrants the imposition of sanctions against appellant’s counsel in the amount indicated. It is noted with respect to the amount assessed against appellant’s counsel, the court considered that The Rybak Firm, PLLC, has repeatedly violated the aforesaid rule and submitted no response to the court’s order to show cause in this matter.
The court’s rule does not absolve respondent’s counsel from responsibility for failing to timely notify the court of the settlement. Respondent’s counsel’s “belief” that appellant’s counsel would file the stipulation of settlement is inadequate to deflect counsel’s duty under Rule 730.3 .
I think everyone should have had to pay $1,000. I just hope counsel for defendant submits an invoice to defendant for the $250 he has to pay and follows up for payment.
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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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Jan 15, 2010Common Questions
Frequently Asked Questions
What constitutes insurance bad faith in New York?
Bad faith occurs when an insurer unreasonably delays, denies, or underpays a valid claim without a legitimate basis. In New York, bad faith in the no-fault context can include failing to timely pay or deny claims, conducting sham IMEs, or using delay tactics to avoid payment. While New York does not have a standalone bad faith statute for first-party claims, remedies include consequential damages and interest.
What remedies are available for insurer bad faith?
In no-fault cases, remedies include 2% per month statutory interest on overdue claims under 11 NYCRR §65-3.9, attorney fees, and potentially consequential damages. In liability insurance contexts, insurers acting in bad faith may be liable for the full judgment against the insured, even exceeding policy limits.
How do I prove bad faith by my insurance company?
You must show the insurer had no reasonable basis for denying or delaying your claim. Evidence includes the insurer's claims file, the timing and adequacy of their investigation, whether they followed their own procedures, and whether the denial was supported by the medical evidence. A pattern of similar conduct toward other claimants can also be relevant.
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About the Author
Jason Tenenbaum, Esq.
Jason Tenenbaum is the founding attorney of the Law Office of Jason Tenenbaum, P.C., headquartered at 326 Walt Whitman Road, Suite C, Huntington Station, New York 11746. With over 24 years of experience since founding the firm in 2002, Jason has written more than 1,000 appeals, handled over 100,000 no-fault insurance cases, and recovered over $100 million for clients across Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island. He is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
Jason is admitted to practice in New York, New Jersey, Florida, Texas, Georgia, and Michigan state courts, as well as multiple federal courts. His 2,353+ published legal articles analyzing New York case law, procedural developments, and litigation strategy make him one of the most prolific legal commentators in the state. He earned his Juris Doctor from Syracuse University College of Law.
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.
If you need legal help with a bad faith matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.