Key Takeaway
Delta Diagnostic case explains when no-fault statutory prejudgment interest tolling begins - court rules toll starts only after reasonable prosecution period ends.
Delta Diagnostic Radiology, P.C. v Country-Wide Ins. Co., 2018 NY Slip Op 50118(U)(App. Term 2d Dept. 2018)
No-fault statutory prejudgment interest accrues upon overdue first-party no-fault benefits at the rate of two percent per month “unless the applicant unreasonably delays the … court proceeding” (11 NYCRR 65-3.9 , ). While the court found that plaintiff was not entitled to the interest which had accrued between the commencement of the action on March 30, 2006 and the date plaintiff filed the notice of trial, May 30, 2013, plaintiff’s argument that the toll upon the accrual of interest should not begin until January 28, 2008, as plaintiff had not unreasonably delayed prosecution of the action prior to that date, is correct. Motions were made and discovery demands were served during the period between the commencement of the action and December 27, 2007, the date plaintiff served its second demand for interrogatories. Consequently, a motion by plaintiff to compel defendant to respond to the demand for interrogatories would have been premature prior to January 28, 2008 (see CPLR 2103 ; 3133 ; General Construction Law § 25-a). As a result, plaintiff is entitled to no-fault statutory prejudgment interest from the commencement of the action on March 30, 2006 through January 27, 2008.
that extra 40% interest on a $2,000 radiology bill will go a long way to paying fro Mr. Delta’s upkeep and expenses…
Related Articles
- This one fell under the radar
- Understanding New York’s 2% Interest Rule on Overdue No-Fault Claims
- Previous case on tolling of interest
- Interest was not tolled in similar circumstances
Legal Update (February 2026): Since this 2018 post, New York’s no-fault interest regulations under 11 NYCRR 65-3.9 and related procedural rules governing discovery timelines in CPLR 2103 may have been amended or modified. Practitioners should verify current regulatory provisions and case law developments regarding interest tolling standards and discovery prosecution requirements in no-fault litigation.
