Key Takeaway
Appellate Term expands Civil Court jurisdiction for no-fault insurance disputes under CCA 212-a, allowing cases up to $25,000 following arbitrator awards exceeding $5,000.
The jurisdiction of New York’s Civil Court in no-fault insurance disputes has been clarified by a significant ruling from the Appellate Term, First Department. This decision addresses a crucial procedural question: where should insurance companies file declaratory judgment actions challenging arbitration awards in no-fault cases?
The case centers on Civil Court Act Section 212-a, which governs the Civil Court’s monetary jurisdiction limits. When a master arbitrator issues an award exceeding $5,000 in a no-fault insurance claim, Insurance Law Section 5106 permits either party to seek a de novo adjudication in court. The question becomes whether such cases belong in Civil Court or must be filed in Supreme Court based on jurisdictional thresholds.
This ruling has implications for how insurance companies approach denial of claims strategies and where they choose to litigate disputed arbitration awards.
Jason Tenenbaum’s Analysis:
Country-Wide Ins. Co. v Yao Jian Ping, 2019 NY Slip Op 50160(U)(App. Term 1st Dept. 2019)
“This action, seeking a de novo adjudication of a no-fault insurance claim following a master arbitrator’s award in excess of $5,000 (see Insurance Law § 5106), was properly commenced in Civil Court, since the amount in dispute did not exceed $25,000 (see CCA 212-a; Imperium Ins. Co. v Innovative Chiropractic Servs., P.C., 43 Misc 3d 137, 2014 NY Slip Op 50697 ; Brooks v Rivera, 40 Misc 3d 133, 2013 NY Slip Op 51191 ).”
This was clearly a set up to see what the Appellate Division First Department would.
Key Takeaway
The Appellate Term’s expansive interpretation of CCA 212-a confirms that Civil Court has proper jurisdiction over declaratory judgment actions challenging no-fault arbitration awards, provided the disputed amount remains under $25,000. This ruling provides clarity for practitioners filing post-arbitration challenges and ensures consistent venue selection in no-fault insurance litigation.
Related Articles
- Civil Court’s jurisdictional limits in declaratory judgment actions
- Retroactive application principles for New York insurance regulations
- First Department’s approach to EUO declaratory judgment cases
- Procedural requirements in New York personal injury declaratory actions
- Denial of Claims
Legal Update (February 2026): Since this 2019 post, Civil Court Act § 212-a jurisdictional limits and related procedural requirements for no-fault declaratory judgment actions may have been modified through legislative amendments or court rule changes. Additionally, Insurance Law § 5106 provisions governing de novo adjudications following arbitration awards may have been updated. Practitioners should verify current jurisdictional thresholds and filing requirements before commencing declaratory judgment actions challenging no-fault arbitration awards.
