The single most common reason injured people delay calling a lawyer is the assumption they cannot afford one. In personal injury law that assumption is wrong. Nearly every plaintiff’s injury firm in New York, including ours, works on contingency. You pay nothing upfront, nothing hourly, and nothing at all unless money is recovered for you.
The Basic Structure
Under a contingency arrangement, the attorney’s fee is a percentage of what is recovered. If there is no recovery, there is no fee. The firm takes on the financial risk of the case.
In New York, the customary contingency fee in an ordinary personal injury case is one third of the recovery. Appellate Division court rules cap what may be charged and allow attorneys to use either a sliding scale or a straight one-third arrangement. The specific terms are set out in a written retainer agreement you receive and sign before the work begins.
This structure exists for a reason. Without it, only people who could pay hourly rates could bring a claim against an insurance company with unlimited resources. Contingency fees put a person with a broken back and no income on more even footing with a national insurer.
Medical Malpractice Is Different
New York limits fees in malpractice cases by statute. Judiciary Law § 474-a sets a mandatory descending scale that no retainer agreement can exceed:
- 30 percent of the first $250,000 recovered
- 25 percent of the next $250,000
- 20 percent of the next $500,000
- 15 percent of the next $250,000
- 10 percent of any amount above $1,250,000
The percentages are computed on the net sum recovered after deducting expenses for medical testimony and investigative services chargeable to the case. The scale applies to medical, dental, and podiatric malpractice claims.
The practical effect is that the attorney’s share shrinks as the recovery grows. On a $1 million malpractice verdict, the statutory fee is substantially less than one third. If you are pursuing a claim handled by our medical malpractice lawyer New York team, this is the schedule that governs.
Fees and Case Expenses Are Two Different Things
This is where confusion most often arises, so it is worth stating plainly.
The fee is the percentage that compensates the attorney for the work. Expenses are the out-of-pocket costs of building the case: court filing fees, deposition transcripts, medical record retrieval, accident reconstruction, medical testimony, exhibit preparation, and process servers.
In a contested case these costs can run into five figures or more. Our firm advances them, and they are reimbursed from the recovery. Your retainer agreement will state whether expenses come off the top before the fee is calculated or after, which changes the arithmetic. Ask about it, and expect a clear answer.
What to Ask Before You Sign
A reputable firm will welcome every one of these questions:
- What percentage applies, and does it change if the case goes to trial or appeal?
- Are expenses deducted before or after the fee percentage?
- What happens to advanced expenses if there is no recovery?
- Who will actually handle my case day to day?
- Will the case be referred out to another firm, and how does that affect the fee?
You should leave the meeting with a written retainer, not a handshake. Our page on what to bring to an initial consultation covers how to make that first meeting productive.
Cases Involving Minors and Estates
When a claim is brought on behalf of a child or through an estate, court approval of the settlement and the fee is required. A judge reviews the arrangement to confirm it is reasonable and that the funds are properly protected, often through a structured settlement or supplemental needs trust. This adds steps to the process, which our page on case timelines explains.
Why the Fee Structure Should Not Delay Your Call
Because a consultation costs nothing and creates no obligation, there is no financial reason to wait. There are, however, several legal reasons not to. Evidence disappears on schedules described in what evidence you need, and filing deadlines run whether or not you have spoken to anyone, as our guide to the statute of limitations explains. Some claims against government entities must be noticed within 90 days.
Contingency fees also align incentives. A firm paid from the recovery has a direct stake in maximizing it, which is a different posture than an hourly lawyer billing regardless of outcome. See when should you hire a personal injury lawyer.
Talk to a New York Personal Injury Attorney
Buttafuoco & Associates has handled injury cases on contingency since 1981. The consultation is free, the case review costs nothing, and you owe no attorney’s fee unless we recover for you. If you need a Rochester personal injury lawyer, or representation elsewhere in the state, call 1-800-NOW-HURT or contact us today.