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This article is part of our ongoing attorney fee coverage, with 16 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 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)
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(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.
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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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