A contingent fee is an arrangement between a client and a law firm prosecuting his or her legal action. Stated simply, there is no legal fee (i.e., a lawyer is not paid for his or her work) unless there is a recovery, whether by settlement, jury verdict, or court award.
In addition, all of the costs and expenses of litigation (known as disbursements) are paid in advance by a law firm. That means there are no costs to client unless his or her case results in a recovery. The costs will be paid back to law firm at the end of litigation from client’s proceeds.
In New York State attorneys’ legal fees are handled on a contingency basis, and are governed by New York State Judiciary Law §474, New York State Judiciary Law §474-a and Section 1022.31 Title 22 of the New York Codes Rules and Regulations.
The Platta Law Firm is dedicated to follow the New York State regulations when it comes to assessing its legal fees.
In all non-medical malpractice personal injury cases, law firm will be entitled to (33 1/3%) of the net recovery (i.e. construction site accidents, motor vehicle accidents, and premises cases). This fee will be claimed and received at the end of the case, together with client’s proceeds from successful litigation.
To explain this it is best to use an example. Let’s assume that the total recovery in case is $1,000,000.00, attorneys’ disbursements equal to $10,000.00 and amount of liens (from unpaid medical bills or Workers Compensation Insurance) equals $10,000.00 as well.
|Attorneys’ Fees (1/3):||-$330,000|
|Any Liens (WCB or medical):||-$10,000|
|Total to Client:||$650,000|
Every law firm practicing personal injury in the State of New York is bound by the above type of mathematical formula when calculating client’s proceeds.
In medical malpractice cases, the law requires a different mathematical formula to be used. In these types of cases, law firm will be entitled to 30% of the first $250,000 recovered; plus 25% on the next $250,000 recovered; plus 20% on the next $500,000; plus 15% on the next $250,000 and plus 10% on any amount recovered over $1,250,000.
If you would have any questions regarding the above noted law, please do not hesitate to contact The Platta Law Firm to speak to one of our attorneys – as always – free of charge!