Key Takeaway
Court limits Article 75 attorney fees to $650 in no-fault insurance arbitration proceedings, raising questions about DFS regulation interpretation.
Matter of GEICO Ins. Co. v AAAMG Leasing Corp., 2016 NY Slip Op 03879 (2d Dept. 2016)
“In a proceeding for judicial review of an award by a master arbitrator, an attorney’s fee shall be fixed by the court adjudicating the matter (see Insurance Department Regulations § 65-4.10; Matter of Hempstead Gen. Hosp. v National Grange Mut. Ins. Co. , 179 AD2d 645).”
“The limitations of an attorney’s fee recoverable in an appeal from a master arbitration award are set forth in Insurance Department Regulations (11 NYCRR) § 65-4.10(j). Insurance Department Regulations (11 NYCRR) § 65-4.10(j)(5) states: “No attorney shall demand, request or receive from the insurer any payment or fee in excess of the fees permitted by this subdivision for services rendered with respect to a no-fault master arbitration dispute.”
The Court has construed the above provision (4.10) to refer to Article 75 proceedings and appeals from the proceedings. While the case does not refer to de novo actions, 4.10 refers to both types of proceedings.
I think the Court has probably gotten this wrong. As a carrier, it is great knowing that my liability for counsel fees is limited to $650 when I commence a trial de novo. But to be dragged through a de-novo action with a PC, CC and other attendants of a Supreme Court action when the provider chose to file an arbitration and to have an attorney fee limited to $650? This is nonsense.
I really do not think DFS meant for this interpretation of the regulation. I just do not read 4.10(j)(5) as a limitation on 4.10(j)(4). It is creative, I will say that.
Related Articles
- Attorney Fee Requirements in New York No-Fault Insurance Cases
- Attorney fees for cases filed on or after February 4, 2015
- Third DCA refuses to apply 65-4.6(e) under abuse of discretion standard
- Infants compromise order not needed to proceed in arbitration in assignee case
Legal Update (February 2026): Since this 2016 post, Insurance Department Regulations § 65-4.10 governing attorney fee limitations in no-fault arbitration proceedings may have been amended or modified. Practitioners should verify current fee schedule provisions and any regulatory updates that may have affected attorney fee recovery limits in Article 75 proceedings and de novo actions.
