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October 2026 This action was commenced by the plaintiff-respondent United States Merchant Marine Academy Sailing Foundation (USMMA) against defendant-appellant Hilb Group of New York, an insurance broker. The suit was for damages based on negligence. breach of contract, and violations of General Business Law § 349. USMMA alleged that it suffered damages resulting from the insurance broker's failure to procure the full scope of insurance coverage a racing yacht. Additionally, the suit alleged that defendant insurance broker hid the fact that such coverage was available at a higher premium. Further, USMMA alleged that defendant broker failed to tender a claim for damages sustained by the racing yacht, concealed that failure from the plaintiff, and fraudulently told plaintiff that a claim had been submitted.
The lower court (Supreme Court, Nassau County) denied the motion filed by the insurance broker under CPLR 3211(a)(7) [dismissal for failure to state a cause of action] [unlawful unfair, deceptive, or abusive acts or practices in business] [request for attorney fees] [New York Civil Practice Law & Rules]. On appeal, the Appellate Division, Second Judicial Department dismissed the General Business Law claim based on § 349 claim and attorney fee claim.
The Appellate Division based its reasoning on the fact that New York follows the rule that attorney’s fees are incidents of litigation. Therefore, the prevailing party may not recoup them from the losing party unless an award is authorized by agreement between the parties, by statute or by court rule. Case Reference: United States Merchant Marine Academy (USMMA) Sailing Foundation, Inc., respondent, v Hilb Group of New York, LLC, etc., appellant; Index No. 607424/25, Supreme Court of the State of New York, Appellate Division: Second Judicial Department, AD3d Read the Nassau County Supreme Court decision .here (directed to decision on nycourts.gov, under the New York State Unified Court System.
The lower court (Supreme Court, Nassau County) denied the motion filed by the insurance broker under CPLR 3211(a)(7) [dismissal for failure to state a cause of action] [unlawful unfair, deceptive, or abusive acts or practices in business] [request for attorney fees] [New York Civil Practice Law & Rules]. On appeal, the Appellate Division, Second Judicial Department dismissed the General Business Law claim based on § 349 claim and attorney fee claim.
The Appellate Division based its reasoning on the fact that New York follows the rule that attorney’s fees are incidents of litigation. Therefore, the prevailing party may not recoup them from the losing party unless an award is authorized by agreement between the parties, by statute or by court rule. Case Reference: United States Merchant Marine Academy (USMMA) Sailing Foundation, Inc., respondent, v Hilb Group of New York, LLC, etc., appellant; Index No. 607424/25, Supreme Court of the State of New York, Appellate Division: Second Judicial Department, AD3d Read the Nassau County Supreme Court decision .here (directed to decision on nycourts.gov, under the New York State Unified Court System.
