Key Takeaway
Court clarifies attorney fee awards in no-fault arbitration appeals, establishing precedent for reasonable fee determination in master arbitration proceedings.
Attorney Fee Awards in No-Fault Arbitration Appeals: Court Establishes Clear Authority
When no-fault insurance disputes proceed through arbitration and subsequently to court appeals, questions often arise about who pays attorney fees and how much. A recent First Department decision provides important clarity on the court’s authority to award reasonable attorney fees in appeals from master arbitration awards.
The case highlights the specific regulatory framework governing attorney fee awards in no-fault proceedings, particularly when matters move beyond initial arbitration to judicial review. This decision reinforces that courts have clear statutory authority to determine appropriate compensation for legal services in these specialized proceedings, which is particularly significant given the limitations that typically apply to attorney fees in no-fault cases.
Understanding when and how attorney fees can be recovered is crucial for both healthcare providers and insurance companies navigating the no-fault system’s complex dispute resolution process.
Jason Tenenbaum’s Analysis:
Matter of Country-Wide Ins. Co. v Bay Needle Care Acupuncture, P.C., 2018 NY Slip Op 03929 (1st Dept. 2018)
“Respondent is entitled to reasonable attorney’s fees for this appeal. Supreme Court has authority to award attorneys fees as this is an appeal from a master arbitration award pursuant to 11 NYCRR 65-4.10(j)(4), which, in pertinent part, provides: “The attorney’s fee for services rendered in connection with … a court appeal from a master arbitration award and any further appeals, shall be fixed by the court adjudicating the matter” (see also Matter of GEICO Ins. Co. v AAAMG Leasing Corp., 148 AD3d 703 , recalling and vacating Matter of GEICO Ins. Co. v AAAMG Leasing Corp., 139 AD3d 947 ). Accordingly, we remand the matter to Supreme Court for a determination of respondent’s reasonable attorney’s [*2]fees for this appeal. To the extent Country-Wide Ins. Co. v Valdan Acupuncture, P.C. (150 AD3d 560, 561 ) takes a different approach to calculating attorneys’ fees, we decline to follow it.”
Key Takeaway
This decision confirms that courts have explicit authority under 11 NYCRR 65-4.10(j)(4) to award reasonable attorney fees for appeals from master arbitration awards in no-fault cases. The ruling clarifies the regulatory framework and rejects inconsistent approaches to attorney fee calculations, providing greater predictability for practitioners handling no-fault appeals.
