Extraordinary fee

Understanding Extraordinary Attorney Fee Claims in No-Fault Cases

When attorneys seek fees beyond the standard rates established by New York’s no-fault regulations, they must demonstrate that their case involved truly exceptional circumstances. The Appellate Term’s decision in A.B. Med. Servs., PLLC v Motor Veh. Acc. Indem. Corp. provides important guidance on what courts consider when evaluating claims for extraordinary attorney fees in post-judgment enforcement proceedings.

This case illustrates the high bar attorneys face when arguing their work deserves compensation above the regulated fee schedule. Even when counsel achieves a favorable outcome, courts scrutinize whether the legal issues were genuinely novel or complex enough to justify enhanced fees. The decision also highlights how attorney time records can work against extraordinary fee claims, particularly when attorney fee limitations are at stake.

Jason Tenenbaum’s Analysis:

A.B. Med. Servs., PLLC v Motor Veh. Acc. Indem. Corp., 2017 NY Slip Op 50676(U)(App. Term 2d Dept. 2017)

(1) “Assuming without deciding that 11 NYCRR 65-4.6 (f), a no-fault regulation, could properly be applied to postjudgment enforcement litigation, such as that involved herein, we nonetheless agree with the Civil Court’s finding that the issues in dispute here were not so novel or unique as to require extraordinary skills or services warranting attorney’s fees in excess of those provided for in the no-fault regulations, regardless of the outcome obtained”

(2) “Indeed, plaintiffs’ counsel’s own timesheets indicate that the attorneys involved spent less than two and a half hours on legal research on these allegedly “novel” issues.”

Key Takeaway

Courts apply strict scrutiny to extraordinary attorney fee requests in no-fault cases, requiring genuine novelty and complexity rather than just favorable outcomes. Attorney time records can undermine claims of extraordinary work, as demonstrated when counsel spent minimal time researching supposedly novel issues. This decision reinforces that bonus attorneys fees require exceptional circumstances beyond routine litigation success.

Legal Update (February 2026): The attorney fee provisions in 11 NYCRR 65-4, including section 65-4.6 addressing extraordinary fee claims, may have been amended since this 2017 post was published. Fee schedules and the criteria for establishing extraordinary circumstances in no-fault cases are subject to periodic regulatory updates. Practitioners should verify current fee limitations and procedural requirements under the most recent versions of these regulations.