In New York State, personal injury lawyers do not charge upfront fees or costs to manage your case. They work on a contingency fee basis, meaning their fee is a percentage of the amount you receive through a settlement or verdict.
As per court rules (22 NYCRR 603.7(e)(1), (2)), this percentage cannot exceed 33 percent. (Medical malpractice cases have different fee structures, discussed below.) Your New York personal injury lawyer can discuss the fees for your specific case.
- Understanding Contingent Legal Fees in a NY Personal Injury Case
- Are There Caps on Contingency Fees in New York?
- Will I Have to Pay Additional Costs for My Personal Injury Lawyer?
- How Do I Know How Much My Lawyer Will Charge for My NY Injury Case?
- What Do I Receive for the Lawyer Fees I Pay in My New York Case?
- Discuss Your NY Personal Injury Accident With Our Legal Team to Learn More
Understanding Contingent Legal Fees in a NY Personal Injury Case
When you hire an attorney to manage your personal injury claim or lawsuit, they will not ask you to pay any upfront costs or fees. You also do not have to agree to an hourly rate or retainer agreement. Instead, you will sign a contract agreeing to give them a certain percentage of the money they recover for you if they are successful.
After they close the case and win a settlement or verdict for you, they will receive the check for your payout. They will take their portion of the payout and issue you a check for the remainder of your financial recovery.
Why Do Personal Injury Attorneys Handle Cases On a Contingency Basis?
Personal injury lawyers in New York realize that injury victims and their families often do not have extra cash for legal costs, especially when they are facing mounting medical bills and must take time off work to recover. They often do not have the means to hire an experienced lawyer who charges a retainer or other upfront fees.
However, all injury victims deserve to have qualified legal representation on their side as they navigate the process to recover appropriate compensation based on their accidents and injuries. A contingency fee arrangement allows anyone to secure legal representation, regardless of their financial status.
Additionally, this fee arrangement means personal injury lawyers generally only accept cases they believe they will win. This provides the client with peace of mind knowing their lawyer has their best interests at heart, as they have a vested interest in securing appropriate compensation. If you don’t get paid, neither do they.
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Are There Caps on Contingency Fees in New York?
There are legal caps on contingency fee percentages in some types of cases. For example, New York Judiciary Law § 474-a(2) sets a sliding scale limit on fees for New York medical malpractice lawyers. The more money secured, the lower the percentage a lawyer is allowed to claim. This ranges from 30 percent of the first $250,000 recovered to 10 percent of anything over $1.25 million.
There is no statutory limitation on the dollar amount a contingency fee can reach for most types of personal injury cases, such as:
- Car accidents
- Truck accidents
- Motorcycle accidents
- Slip and falls
- Construction site accidents
In other words, the more a personal injury attorney recovers for the injured client, the greater the dollar amount of the fee to the attorney. This structure unites the client and the attorney in interest. The attorney is financially incentivized to win the greatest amount possible for the injured client, thereby earning the highest fee possible.
Contingency fee percentages vary throughout the United States. Contingency fees for most personal injury cases are, on average, between 33 and 40 percent, according to the American Bar Association.
Will I Have to Pay Additional Costs for My Personal Injury Lawyer?
In addition to the contingency fee, you could be responsible for costs related to building and managing your case. This is especially true if your attorney takes your case to court. Additional costs could include court filing fees, expenses to conduct discovery, costs to obtain records, deposition fees, and expert witness fees.
A personal injury law firm usually pays these costs as they work on the case and seek financial compensation for you. However, they may recoup these costs after winning the case and recovering money on your behalf. Others include these costs in the contingency fee and don’t ask clients to pay for them separately.
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How Do I Know How Much My Lawyer Will Charge for My NY Injury Case?
According to the Rules of Professional Conduct, which govern attorney conduct, attorneys must explain their fees clearly and in a way that is easy to understand. Contingency fee arrangements in personal injury cases must be agreed upon in writing beforehand and include the percentage of the payout the lawyer will take as their fee.
Your written agreement with your lawyers must also specify whether costs such as court fees, expert witness fees, and other expenses are included in the contingency fee or if they will be charged to you separately.
If you have any questions or concerns about how the contingency fee agreement will work in your New York personal injury case, do not hesitate to ask your attorney before signing the agreement. Talking about money with your personal injury lawyer is not something to be shy about. They will be happy to answer your questions and address your concerns.
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What Do I Receive for the Lawyer Fees I Pay in My New York Case?
When you hire a New York personal injury attorney to handle your case, you will receive knowledgeable and skilled legal guidance to manage your case and fight for the money you deserve. You can count on your lawyer to do the following:
- Explain your fees and contract
- Answer your questions
- Provide regular case updates
- Identify the liable parties
- Manage all communication with the insurance company and other involved parties so you don’t have to
- Investigate what happened and gather evidence for your case
- Seek appropriate damages
Your personal injury lawyer and legal team will be the best resources to recover the compensation you deserve and pay for your accident-related expenses and losses. Your attorney will recover the following types of damages:
- Medical expenses
- Future medical care costs
- Lost income
- Diminished earning ability
- Property damage
- Out-of-pocket expenses
- Pain and suffering and other non-economic damages
Discuss Your NY Personal Injury Accident With Our Legal Team to Learn More
At Friedman & Simon, L.L.P., our attorneys work based on contingency. We will discuss our fees and answer your questions about our fee arrangement during your free consultation with our team.
We are here to ensure you get the legal representation and support you want and the compensation you deserve. Call for a free initial consultation, or use our online contact form to reach us today.
Call or text 516-932-0400 or complete a Free Case Evaluation form