Key Takeaway
New York court rules that infant compromise orders aren't needed in no-fault arbitration when healthcare provider acts as assignee, not the infant patient as party.
This article is part of our ongoing arbitrations coverage, with 57 published articles analyzing arbitrations 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.
Understanding Party Status in No-Fault Arbitration Cases
No-fault insurance arbitration often involves complex questions about who qualifies as a party to the proceeding. A recent Second Department decision clarifies an important distinction: when a healthcare provider acts as an assignee of benefits from an infant patient, the special procedural requirements that apply when infants are parties to arbitration do not come into play.
This case demonstrates how courts carefully analyze the true parties in interest in arbitration proceedings, particularly in the context of assigned no-fault insurance benefits. The ruling provides crucial guidance for healthcare providers seeking to recover payment through arbitration without unnecessarily complicated procedural hurdles.
Jason Tenenbaum’s Analysis:
Matter of Fast Care Med. Diagnostics, PLLC/PV v Government Employees Ins. Co., 2018 NY Slip Op 03831 (2d Dept. 2018)
“We agree with the Supreme Court that the arbitrator’s award was irrational and in conflict with CPLR 1209, which applies “only where an infant is a party” to an arbitration proceeding (Goldenberg v Goldenberg, 25 AD2d 670, 670, affd 19 NY2d 759; see Schneider v Schneider, 17 NY2d 123, 127). The infant patient was not a party to the arbitration; rather, Fast Care, as the infant’s assignee, was the party that brought the arbitration (see 11 NYCRR 65-3.11). Therefore, we agree with the court that the arbitrator disregarded established law in determining that the requirements of CPLR 1209 applied here (Schneider v Schneider, 17 NY2d at 127; see Goldenberg v Goldenberg, 25 AD2d at 670). Furthermore, the master arbitrator’s determination that the assignment of benefits was not effective was not based on any requirement set forth in established law or regulations (see generally 11 NYCRR 65-2.4).”
Bonus attorney fees: “Fast Care did not demonstrate its entitlement to an award of an attorney’s fee, as the arbitrator did not reach the issue of whether the subject claims were “overdue""
Key Takeaway
Healthcare providers acting as assignees of no-fault benefits from infant patients need not comply with CPLR 1209’s infant compromise requirements in arbitration. The infant is not a party to the arbitration—the provider-assignee is the actual party bringing the claim, making special infant protections inapplicable to the proceeding.
Legal Update (February 2026): Since this 2018 decision, the regulations governing no-fault arbitration procedures (11 NYCRR 65-2 and 65-3) may have been amended, and CPLR 1209 provisions regarding infant parties in arbitration could have been modified through legislative updates or judicial interpretation. Practitioners should verify current regulatory language and procedural requirements for assignee arbitrations involving infant patients before relying on the procedural framework discussed in this analysis.
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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
No-Fault Arbitrations in New York
No-fault arbitration is the primary forum for resolving disputes between medical providers and insurers over claim denials. The arbitration process has its own procedural rules, evidentiary standards, and appeal mechanisms — including master arbitration and Article 75 judicial review. Understanding arbitration practice is essential for any attorney handling no-fault claims. These articles cover arbitration procedures, hearing strategies, award enforcement, and the grounds for challenging arbitration outcomes in court.
57 published articles in Arbitrations
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Frequently Asked Questions
How does no-fault arbitration work in New York?
No-fault arbitration is conducted under the American Arbitration Association's rules. The claimant (usually a medical provider) files a request for arbitration after the insurer denies a claim. An assigned arbitrator reviews written submissions from both sides — including medical records, denial letters, peer reviews, and legal arguments — and issues a written decision. Arbitration awards can be confirmed in court under CPLR Article 75, and either party can appeal to a master arbitrator. No-fault arbitration is generally faster and less expensive than litigation.
How are attorney fees awarded in no-fault cases?
Under 11 NYCRR §65-4.6, if a no-fault claimant prevails at arbitration or in court, the insurer may be required to pay attorney fees. The fee schedule is set by regulation — typically 20% of the first $2,000 recovered and 10% of amounts above that, with a minimum fee. These fees are separate from and in addition to the benefits recovered.
Can I recover attorney fees in a personal injury lawsuit?
In New York, each party typically pays their own attorney fees (the "American Rule"). Exceptions exist in certain statutory claims — for example, employment discrimination cases under federal or state law may include fee-shifting provisions. In personal injury cases, the attorney fee is usually a contingency percentage agreed upon with the client.
What is the fee schedule for no-fault arbitration?
The fee schedule under Regulation 68 (11 NYCRR §65-4.6) provides for a reasonable attorney fee based on the amount recovered. The schedule is designed to ensure claimants have access to legal representation while keeping fees proportional to the recovery. Disputes over the amount of attorney fees can be resolved by the arbitrator or court.
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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.
If you need legal help with a arbitrations matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.