Hourly attorneys fees (65-4.10[j][4])

Matter of GEICO Ins. Co. v AAAMG Leasing Corp., 2017 NY Slip Op 01552 (2d Dept. 2017)

(1) “The petitioner opposed that demand for relief. In the alternative, the petitioner stated that the appellant’s fee should be limited to $650.”

(2) “In the order and judgment appealed from, the Supreme Court confirmed the arbitration award. That branch of the cross petition which was for an award of an additional attorney’s fee was denied without comment. The appeal is limited to so much of the order and judgment as denied that branch of the cross petition which was for an award of an additional attorney’s fee.”

(3)  “The general rule is that in proceedings involving arbitration, as in other litigation, an attorney’s fee is not recoverable unless provided for by agreement or statute (see Myron Assoc. v Obstfeld, 224 AD2d 504). Pursuant to Insurance Law § 5106(a), if a valid claim or portion of a claim for no-fault benefits is overdue, “the claimant shall also be entitled to recover his attorney’s reasonable fee, for services necessarily performed in connection with securing payment of the overdue claim, subject to limitations promulgated by the superintendent in regulations.” As applicable here, the superintendent’s regulations provide that an attorney’s fee for services rendered in connection with “a court appeal from a master arbitration award … shall be fixed by the court adjudicating the matter” (Insurance Department Regulations § 65-4.10). The term “court appeal” applies to a proceeding such as this, taken pursuant to CPLR article 75 to vacate or confirm a master arbitration award (see Matter of Hempstead Gen. Hosp. v National Grange Mut. Ins. Co., 179 AD2d 645).”

(3) “Accordingly, the matter must be remitted to the Supreme Court, Nassau County, for a determination of the amount of the additional attorney’s fee to which the appellant is entitled, stating the evidentiary basis for the award. We note that the court shall not consider any time spent by the appellant’s attorney in applying for and substantiating his fee, as the appellant is not entitled to a “fee upon a fee”

The Court in this matter was pellucid that any Article 75 or trial de novo that a medical provider initiates or responds to will be subjected to an hourly attorney fee.  I see damage coming. Providers who litigate fee schedule disputes through Article 75 should factor this hourly fee exposure into their cost-benefit analysis.

For a comprehensive overview of attorney fee rules and Article 75 standards in no-fault proceedings, see the legal encyclopedia.

Related Articles

• Master Arbitrator Review Standards and when arbitration decisions can be vacated
• Understanding Article 75 proceedings and backdoor attempts through declaratory judgment
• Complete guide to Article 75 review procedures
• Service requirements for master arbitral review demands

Legal Update (February 2026): The attorney fee provisions under Insurance Department Regulation § 65-4.10 and related fee schedules may have been amended since this 2017 post. Practitioners should verify current fee limitations, hourly rate caps, and procedural requirements for attorney fee awards in no-fault arbitration appeals, as these regulatory provisions are subject to periodic updates by the Superintendent of Financial Services.

Related: What “de novo” means in New York — trial de novo and de novo review, explained.