New York Court of Appeals

In the Matter of First National Bank of East Islip, Appellant v. Mahlon Brower, as Clerk of the First District…

October 11, 197742 N.Y.2d 471

Summary

The Court of Appeals affirmed the lower courts, holding that a court‑promulgated directive requiring an inquest to determine attorneys’ fees in default judgments is valid and that such fees must be assessed on a quantum meruit basis rather than by mechanically applying the contract’s 15% formula. The statutory provision allowing up to 15% does not preclude judicial supervision of fees and does not create an enforceable penalty clause.