Key Takeaway
Analysis of CIP Physical Therapy v. Lawsky case challenging DFS attorney fee regulations in New York no-fault insurance practice, comparing hourly fee systems across states.
This article is part of our ongoing no-fault coverage, with 271 published articles analyzing no-fault 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.
CIP Physical Therapy, P.C., et. al. v. Lawsky, et. al., Index #: 3118/15 (Sup. Ct. Kings Co. 2017)
I cannot say how I came across this decision. I am slightly late in publishing this, but I have been slightly tardy in the updates. This is another lawsuit brought against the Department of Financial Services regarding the attorney fee regulation. The jeremiad presented here involves the 20% number, the lack of minimum fee and the arbitrary maximum fee.
My opinion is that an arbitration only system may lend itself to a true hourly attorney fee. Similarly, cases where special circumstances exist (current law) can also lend itself to a true hourly attorney fee. The problem as I see it as that a party that places their dispute in the counties of Richmond, Bronx, or Manhattan – given the administrative backlog and lest I say hatred toward no-fault cases – would easily achieve a $10,000 attorney fee per case given a true hourly attorney fee. The regulations are looking to avoid this reality.
One only has to look at Florida no-fault practice (either pre or post multiplier) to see the destruction that a true hourly attorney fee in a litigious no-fault state can bring. Compare that to New Jersey where in the arbitral atmosphere, the hourly attorney fee amounts are limited to about $1500 on the upper end and $500 on the lower end.
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My last observation and I have said this before is that challenging DFS’ regulations in the post LMK era is an exercise in futility. It is suicidal. Sometimes cases need to be brought to show the powers at be how ridiculous certain regulations and rules of law are. I did this with the fee schedule preclusion rule and the 3 day late rocket docket preclusion matter. A point was proven and regulatory actions have been or will be taken. However, to turn around and to (again) challenge DFS’ regulations as unconstitutional and to expect different result than the last few times, well, is not going to win the day.
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Legal Update (February 2026): Since this 2017 post, New York’s no-fault attorney fee regulations may have been subject to amendments or updates through Department of Financial Services rulemaking. Practitioners should verify current fee schedules, percentage limitations, and any procedural modifications that may affect attorney compensation in no-fault arbitrations and litigation.
Legal Context
Why This Matters for Your Case
New York's no-fault insurance system, established under Insurance Law Article 51, is one of the most complex insurance frameworks in the country. Every motorist must carry Personal Injury Protection coverage that pays medical expenses and lost wages regardless of fault, up to $50,000 per person.
But insurers routinely deny valid claims using peer reviews, EUO scheduling tactics, fee schedule reductions, and coverage defenses. The Law Office of Jason Tenenbaum has handled over 100,000 no-fault cases since 2002 — from initial claim submissions through arbitration before the American Arbitration Association, trials in Civil Court and Supreme Court, and appeals to the Appellate Term and Appellate Division. Jason Tenenbaum is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
His 2,353+ published legal articles on no-fault practice are cited by attorneys throughout New York. Whether you are dealing with a medical necessity denial, an EUO no-show defense, a fee schedule dispute, or a coverage question, this article provides the kind of detailed case-law analysis that helps practitioners and claimants understand exactly where the law stands.
About This Topic
New York No-Fault Insurance Law
New York's no-fault insurance system requires every driver to carry Personal Injury Protection (PIP) coverage that pays medical expenses and lost wages regardless of who caused the accident. But insurers routinely deny, delay, and underpay valid claims — using peer reviews, IME no-shows, and fee schedule defenses to avoid paying providers and injured claimants. Attorney Jason Tenenbaum has litigated thousands of no-fault arbitrations and court cases since 2002.
271 published articles in No-Fault
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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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