Key Takeaway
Court ruling clarifies that the 2014 attorney fee increase for no-fault insurance cases is not retroactive, supporting the $850 statutory maximum for pre-amendment cases.
Understanding Attorney Fee Limitations in No-Fault Insurance Cases
New York’s no-fault insurance system includes specific provisions for attorney fees when healthcare providers pursue unpaid benefits. However, questions often arise about which fee schedule applies when regulations change mid-case. A 2016 appellate decision provides important clarity on the retroactivity of fee amendments.
The case involves a fundamental question that affects many no-fault insurance practitioners: when New York amended its attorney fee regulations in July 2014, did the increased fees apply to cases already in progress? This timing issue has significant financial implications for both attorneys and their clients in the no-fault system.
Jason Tenenbaum’s Analysis:
City Care Acupuncture, P.C. v Allstate Prop. & Cas. Ins. Co., 2016 NY Slip Op 51793(U)(App. Term 2d Dept. 2016)
(1) “Appeal, on the ground of inadequacy, from a decision after inquest of the City Court of Yonkers, Westchester County (Thomas R. Daly, J.), dated January 13, 2015, and from a judgment of the same court entered April 21, 2015.”
(2) “In the present case, as the City Court awarded a default judgment in favor of plaintiffs for first-party no-fault benefits in the principal sum of $4,491.47, plaintiffs are entitled to the maximum statutory attorney’s fees of $850 (cf. 11 NYCRR 65-4.6 ).”
What I find interesting about this case is there is a controversy regarding whether the July 23, 2014 amendment to the attorney fee, increasing it is retroactive. I always said “no”. This appears to support my thought.
Key Takeaway
The appellate court’s application of the $850 attorney fee cap suggests that the 2014 regulatory amendments increasing attorney fees do not apply retroactively to cases filed before the effective date. This ruling aligns with the principle that procedural changes typically apply prospectively unless explicitly stated otherwise, providing important guidance for attorney fee calculations in ongoing no-fault litigation.
Legal Update (February 2026): Since this post’s publication in December 2016, New York’s attorney fee regulations under 11 NYCRR 65-4 may have undergone amendments affecting fee schedules, maximum allowable fees, and procedural requirements. The specific fee caps and calculation methods referenced in this analysis may no longer reflect current provisions. Practitioners should verify current attorney fee limitations and any recent regulatory changes before relying on the fee structures discussed in this post.
