Key Takeaway
Court ruling on no-fault insurance judgment interest rates: 2% monthly vs 9% yearly under Insurance Law § 5106(a) and former 11 NYCRR 65.15(h) regulations.
Pro-Med Med., P.C. v MVAIC, 2022 NY Slip Op 50135(U)(App. Term 2d Dept. 2022)
“By order to show cause dated May 9, 2018, defendant moved, pursuant to CPLR 5021 (a) (2), for an order directing the clerk to enter a satisfaction of the $19,893.34 judgment, as the “judgment has been fully paid and satisfied.” In the alternative, defendant moved to compel plaintiff to file a satisfaction of judgment. Plaintiff opposed the motion. By order entered September 21, 2018, the Civil Court denied defendant’s motion.
Postjudgment interest accrues at the rate of 2% per month in a no-fault action, as “Insurance Law § 5106 (a) and former 11 NYCRR 65.15 (h), which specific directives, supersede the interest provisions contained in CPLR 5004, the more general statute” (Matter of B.Z. Chiropractic, P.C. v Allstate Ins. Co., 197 AD3d 144, 156 ). Consequently, defendant’s contention that the postjudgment interest accrued at the rate of 9% per year pursuant to CPLR 5004 is without merit (see id.). Additionally, since former 11 NYCRR 65.15 (h) was still in effect at the time of the underlying accident in 2001, the 2% per month interest rate is compounded (see id.).”
9% per year v. 2% per month…. I think this was a million dollar case.
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Frequently Asked Questions
What is New York's no-fault insurance system?
New York's no-fault insurance system requires all drivers to carry Personal Injury Protection (PIP) coverage. This pays for medical expenses and lost wages regardless of who caused the accident, up to policy limits. However, you can only sue for additional damages if you meet the 'serious injury' threshold.
