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Allowable Fees in First Party No-Fault Cases

June 17, 2015
By: Scahill Law Group PC

Allowable Fees in First Party No-Fault Cases: The maximum allowable legal fee in a first-party no-fault suit against an Insurance Carrier pursuant to Insurance Department Regulations [11 NYCRR] § 65-4.6(e) is $850. In 2009, the Court of Appeals determined attorneys' fees in a no-fault action are to be calculated based on the "aggregate of all bills for each insured" disputed in any action, up to a maximum of $850 (LMK Psychological Servs., P.C. v State Farm Mut. Auto. Ins. Co., 12 NY3d 217 [2009]),

What is the allowable Fee in consolidated actions? In EMA Acupuncture P.C. v. Allstate Ins. Co., decided by the Supreme Court, Appellate Term, First Department on March 23, 2015, (47 Misc. 3d 126(A) (N.Y. App. Term. 2015), four related actions were consolidated on the consent of the provider.

Here, the court limited the recovery to $850. "We sustain so much of the order under review as limited the amount of any recovery of attorneys' fees to the sum of $850, the maximum allowable pursuant to Insurance Department Regulations [11 NYCRR] § 65-4.6(e). Since this provision provides that attorneys' fees in a no-fault action are to be calculated based on the "aggregate of all bills for each insured" disputed in any action, up to a maximum of $850 (LMK Psychological Servs., P.C. v State Farm Mut. Auto. Ins. Co., 12 NY3d 217 [2009]), the $850 limit was properly applied to the claims at issue in this consolidated action, all of which involve the same parties and assignor, and arise from the same accident."

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