IN RE: AMERICAN TRANSIT INSURANCE COMPANY (2026)

Order, Supreme Court, New York County (Verna L. Saunders, J.), entered September 24, 2025, which, to the extent appealed from, denied respondent's cross-petition for attorneys' fees pursuant to Insurance Law § 5106(a) and 11 NYCRR 65–4.10(j), and confirmation of a master arbitration award dated December 2, 2024, pursuant to CPLR 7511(e), unanimously modified, on the law, the award confirmed, and the matter remanded to fix the amount of attorneys' fees owed to respondent, without costs.

The court denied petitioner's article 75 petition to vacate the master arbitration award, therefore it was required to affirmatively confirm the award (CPLR 7511[e]; see Blumenkopf v. Proskauer Rose LLP, 95 AD3d 647, 648 [1st Dept 2012]). Furthermore, respondent was entitled to an award of attorneys' fees (see Insurance Law § 5106[a]; 11 NYCRR 65–4.10(j)).

The determination of what constitutes a reasonable fee is within the sound discretion of the trial court (see Matter of American Tr. Ins. Co. v SCOB, LLC, 243 AD3d 564, 565 [2d Dept 2025]). Respondent submitted some evidence concerning whether the fee requested was reasonable. Accordingly, upon remand, the court should review the evidence presented, and set a reasonable fee, as well as set forth the evidentiary basis for the award (see Matter of GEICO Ins. Co. v. AAAMG Leasing Corp., 148 AD3d 703, 706 [2d Dept 2017]). If the court finds that the evidence submitted was insufficient to determine what a reasonable fee would be, the trial court may determine a reasonable fee in its discretion (see Matter of American Tr. Ins. Co. v Bay Ridge Surgi–Center, LLC, 243 AD3d 558, 560 [2d Dept 2025]).

The court should also consider the amount of fees incurred by respondent in prosecuting this appeal (see 11 NYCRR 65–4.10[j][4]; Matter of American Tr. Ins. Co. v Rutland Med. PC, 224 AD3d 531, 532 [1st Dept 2024]).