Key Takeaway
Learn whether post-judgment interest in New York no-fault cases is calculated at 24% annually (CPLR 5004) or 9% annually, based on recent appellate decisions.
This article is part of our ongoing interest coverage, with 12 published articles analyzing interest 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.
B.Z. Chiropractic, P.C. v Allstate Ins. Co., 2017 NY Slip Op 51091(U)(App. Term 2d Dept. 2017)
“A money judgment bears interest from the date of its entry (see CPLR 5003), and, generally, the interest accrues until the judgment is paid (see Matter of Matra Bldg. Corp. v [*2]Kucker, 19 AD3d 496 ; Martin v Tafflock, 166 AD2d 635 ). “Postjudgment interest is awarded as a penalty for the delayed payment of a judgment” (ERHAL Holding Corp. v Rusin, 252 AD2d 473, 474 ). Contrary to defendant’s assertion, there is no evidence of actions or conduct by plaintiff which prevented defendant from paying the judgment (see ERHAL Holding Corp., 252 AD2d at 474_; cf. Danielowich v PBL Dev._, 292 AD2d 414 ). Since plaintiff, as the prevailing party, was not required to make a demand for the money (see e.g. Feldman v Brodsky, 12 AD2d 347, 351 ; Weinstein-Korn-Miller, NY Civ Prac ¶ 5003.01 ) and did not cause the delay in paying the judgment, the Civil Court erred in tolling the accrual of interest on the judgment. However, defendant demonstrated, through the submission of checks to plaintiff, which plaintiff had endorsed “without prejudice,” that defendant had partially paid the judgment and is, therefore, entitled to the entry of a partial satisfaction of judgment in the amount of $22,999.70 (see CPLR 5021 ). We note that, contrary to plaintiff’s position, postjudgment interest should be calculated pursuant to CPLR 5004 and not at the two percent per month rate provided for in 11 NYCRR 65-3.9 (a)”
This case appears to conflict with: Corona Hgts. Med., P.C. v Liberty Mut. Ins. Co., 32 Misc. 3d 8, 10 (App. Term 2d Dept. 2011)(“It is noted that plaintiff is not entitled to interest pursuant to the Civil Practice Law and Rules, since Insurance Law § 5106 (a) and the regulations promulgated thereunder supersede the provisions for interest contained in the CPLR”
Also, this case clashed with an older Second Department case (FYI: someone brought this one to my attention): Matter of McMillan v. UnionAmerican Reinsurance Company, 70 AD2d 659 (2d Dept. 1979)(“Furthermore, the judgment properly provided that interest on the award continue to accrue at the rate of 2% per month “pursuant to statute”, rather than the legal rate of 6% Per annum specified in CPLR 5004. CPLR 5004 expressly provides for the application of interest rates other than the legal rate of 6% per annum where otherwise provided by statute. In the instance case, the interest rate of 2% per month applied by Special Term is prescribed by subdivision 1 of section 675 of the Insurance Law (see, also, 11 NYCRR 65.6))”
I can understand the frustration that the court had about allowing old judgments to collect a large interest percentage (then compounded). Clearly, the judgment clerk’s office should not be giving a better rate of return than what is obtained through the best investor out there. Yet, the statute seems pretty clear and the Appellate Division, I think, hit this one on the head 38 years ago.
Related Articles
- Post judgment interest at 9%?
- Interest was not tolled
- Giant Oops from the Appellate Term
- Tolling of interest
- No-fault insurance defaults and interest in New York
Legal Update (February 2026): Since this 2017 post, Insurance Law § 5106 and related no-fault regulations under 11 NYCRR Parts 65-3 and 65.6 may have been amended, potentially affecting post-judgment interest calculations in no-fault cases. Additionally, CPLR provisions governing judgment interest rates and procedures may have been modified. Practitioners should verify current statutory interest rates and regulatory provisions before calculating post-judgment interest in no-fault matters.
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.
About This Topic
Statutory Interest on No-Fault Insurance Claims
Under New York's no-fault regulations, insurers that fail to timely pay or deny a claim are subject to statutory interest penalties — currently two percent per month under 11 NYCRR 65-3.9. The accrual of interest, the calculation methodology, and the circumstances that toll or trigger interest obligations are frequently litigated issues in no-fault practice. These articles examine the regulatory framework governing interest on overdue no-fault claims and the case law that shapes how interest awards are calculated and enforced.
12 published articles in interest
Keep Reading
More interest Analysis
Interest through payment
Queens County court rules 2% monthly interest continues on no-fault claims even after judgment entry, rejecting Appellate Term's suggestion of 9% annual rate.
Mar 11, 2019Post judgment interest at 9%?
New York court clarifies post-judgment interest calculation at 9% per year in no-fault insurance cases, distinguishing between statutory rates and payment procedures.
Dec 18, 2018This one fell under the radar
Expert analysis of NY PIP interest tolling under 65-3.9(d). Learn how procedural delays can cost thousands in Long Island & NYC cases. Call 516-750-0595.
Jan 17, 2012Defaults and interest
Understanding no-fault insurance defaults and interest rules in New York. Expert Long Island attorneys explain the SZ Med v Lumbermens decision and 65-3.9(d). Call 516-750-0595.
Feb 17, 2010Tolling of interest due to failure to prosecute
Delta Diagnostic case explains when no-fault statutory prejudgment interest tolling begins - court rules toll starts only after reasonable prosecution period ends.
Feb 5, 2018Interest when liability is stipulated
Court ruling clarifies that stipulating to liability doesn't trigger prejudgment interest accrual, potentially costing plaintiffs significant money in lengthy cases.
Sep 16, 2016Common Questions
Frequently Asked Questions
What statutory interest applies to overdue no-fault claims?
Under 11 NYCRR §65-3.9, overdue no-fault claims accrue interest at 2% per month from the date the claim became overdue. A claim is overdue if not paid or denied within 30 days of the insurer receiving proof of claim. This interest is a powerful incentive for prompt processing.
When does interest begin to accrue on a no-fault claim?
Interest begins on the 31st day after the insurer receives all requested verification (or the date verification was due if the insurer failed to request it timely). If the insurer fails to pay or deny within 30 days, 2% monthly interest accrues automatically until payment.
Can the insurer avoid paying interest on late no-fault claims?
Only if the insurer can demonstrate a valid excuse for the delay — such as a pending verification request that was timely issued. If the insurer caused the delay through untimely processing or late denials, interest is mandatory and cannot be waived.
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About the Author
Jason Tenenbaum, Esq.
Jason Tenenbaum is the founding attorney of the Law Office of Jason Tenenbaum, P.C., headquartered at 326 Walt Whitman Road, Suite C, Huntington Station, New York 11746. With over 24 years of experience since founding the firm in 2002, Jason has written more than 1,000 appeals, handled over 100,000 no-fault insurance cases, and recovered over $100 million for clients across Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island. He is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
Jason is admitted to practice in New York, New Jersey, Florida, Texas, Georgia, and Michigan state courts, as well as multiple federal courts. His 2,353+ published legal articles analyzing New York case law, procedural developments, and litigation strategy make him one of the most prolific legal commentators in the state. He earned his Juris Doctor from Syracuse University College of Law.
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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