On April 1, 2025, Justice Cohen of the New York County Commercial Division issued a decision in 242 Tenth Invs. LP v. GVC 242 Tenth Sponsor, LLC, 2025 NY Slip Op. 31118(U), holding that fees on fees are not awardable unless explicitly provided for, explaining:
An award of attorneys’ fees pursuant to such a contractual provision may only be enforced to the extent that the amount is reasonable and warranted for the services actually rendered. The determination of what constitutes a reasonable attorney’s fee is a matter within the sound discretion
of the Supreme Court.. . .
Fees on Fees. Sponsor’s application seeks $4,612.50 billed by counsel in preparing this fee application. Such amounts are not recoverable by a prevailing party unless the governing contract is unmistakably clear that fees on fees were contemplated. Here, LPA Section 15.22 does not refer to or contemplate such fees. Therefore, incorporating the 10% discount identified in Sponsor’s bills, the amount of excludable fees on fees billing amounts to $4,151.25.
(Internal quotations and citations omitted).