How Do Personal Injury Attorneys Get Paid in Brooklyn, New York?
Table of Contents
- 1. Why Contingency Fees Exist in Personal Injury Cases
- 2. New York Sets a Legal Ceiling on These Fees
- 3. The Two Fee Structures a Contingency Fee Lawyer in NY Can Choose
- 4. What Counts as the Recovery Your Fee Is Based On
- 5. Your Fee Agreement Must Be in Writing
- 6. What a Contingency Fee Does Not Cover
- 7. Frequently Asked Questions
- 8. Understanding Your Fee Before You Sign
Worrying about legal bills on top of medical bills keeps many injured people from even calling a lawyer. That worry is usually unnecessary.
A contingency fee lawyer in NY does not charge anything upfront. They do not get paid at all unless your case succeeds.
This blog explains how contingency fees actually work. It covers what New York law allows and what your fee agreement should include.
1. Why Contingency Fees Exist in Personal Injury Cases
Most injured people could not afford hourly legal fees while also dealing with medical bills and lost income. The contingency fee model solves that problem.
A contingency fee lawyer in NY takes on the financial risk of the case. If you do not recover any money, you usually owe no lawyer fee at all. This lets injured people pursue a claim without needing cash up front.
Our Personal Injury Litigation page covers how our firm structures fees across the cases we handle.
2. New York Sets a Legal Ceiling on These Fees
Lawyers cannot just charge whatever percentage they want. New York courts place a cap on these fees in personal injury cases.
Brooklyn falls within the Second Judicial Department, which has its own specific rule on this. According to 22 NYCRR Section 691.20, a fee within the department’s approved schedule is considered fair and reasonable. A fee above that schedule can be treated as unreasonable, unless a court allows it.
This rule differs slightly between the four Appellate Division departments. A firm in Manhattan follows a different section number than a firm in Brooklyn, though the substance is similar.
3. The Two Fee Structures a Contingency Fee Lawyer in NY Can Choose
The Second Department’s rule offers two different options. Most firms choose one and use it consistently.
Schedule A is a sliding scale that decreases as the recovery grows:
- 50 percent on the first $1,000 recovered
- 40 percent on the next $2,000 recovered
- 35 percent on the next $22,000 recovered
- 25 percent on any amount over $25,000 recovered
Schedule B is simpler. It allows a flat percentage of up to 33 and one-third percent of the total recovery. This applies as long as the client agreed to it in writing from the start.
In practice, most personal injury lawyers use Schedule B. The flat one-third structure is easier to explain and easier for clients to understand.
4. What Counts as the Recovery Your Fee Is Based On
The fee percentage applies to your net recovery, not the raw settlement number. Certain expenses get deducted first.
Costs like expert witness fees and investigative expenses usually get subtracted before the percentage is calculated. This matters because a larger case with significant litigation costs can end up with a smaller net amount than the headline number suggests.
We cover how settlement amounts and trial verdicts compare in our post, Personal Injury Settlement vs Trial Verdict in New York. Going to trial can affect both the size of your recovery and the costs deducted from it.
5. Your Fee Agreement Must Be in Writing
New York does not leave contingency fees to a verbal handshake. Documentation is required.
According to Rule 1.5 of the New York Rules of Professional Conduct, a lawyer must promptly give the client a written statement of how the fee will be determined. This includes the percentage, what expenses get deducted, and whether those expenses come out before or after the fee is calculated.
At the end of your case, the lawyer must also give you a written statement. It should show the final recovery and exactly how the fee was calculated.
6. What a Contingency Fee Does Not Cover
A contingency fee lawyer in NY handling your lawsuit is not necessarily the same arrangement covering every part of your claim. There is an important exception worth knowing.
- The contingency fee rules described above do not apply to fees for collecting no-fault, first-party insurance benefits
- No-fault benefit collection generally follows a different fee structure under insurance regulations
- Case expenses, like filing fees or expert costs, are usually separate from the lawyer’s percentage fee itself
- Medical liens and other reimbursement obligations are handled separately from the lawyer fee calculation
Knowing which category a fee falls into helps avoid confusion when you review your final settlement breakdown.
7. Frequently Asked Questions
Do I pay anything if my case is unsuccessful?
Under a standard contingency arrangement, you usually do not owe a fee if there is no recovery. Some case expenses may still apply, depending on your agreement, so it is worth clarifying this upfront.
Can my lawyer charge more than one-third of my recovery?
Generally, no. The Second Department’s rule sets that as the standard ceiling. A court can authorize a higher fee only in extraordinary circumstances, and this rarely happens in typical cases.
Are contingency fees the same for every type of injury case?
Medical malpractice cases follow a different fee structure entirely. State law sets that one, not the rule described here. Most other cases handled by a contingency fee lawyer in NY follow the schedule discussed above.
What happens to unpaid medical bills from my treatment?
These are usually addressed separately from the lawyer’s fee. They are often handled through liens or reimbursement arrangements negotiated as part of resolving your case.
Why do most lawyers choose the flat one-third fee instead of the sliding scale?
The sliding scale results in a lower overall fee only on very small recoveries. For most cases, the flat percentage is simpler for both sides to track.
8. Understanding Your Fee Before You Sign
Knowing how a contingency fee lawyer in NY gets paid before you sign anything helps you ask the right questions. A written agreement should leave little room for surprises later.
If you were injured in Brooklyn, our Personal Injury Attorney in Brooklyn, NY page covers how our team approaches cases there.
💡Key Takeaways
- A contingency fee lawyer in NY generally charges nothing upfront and gets paid only if your case results in a recovery.
- Brooklyn falls under the Second Judicial Department, which caps contingency fees under a specific schedule. This means either a sliding scale or a flat fee of up to one-third of the recovery.
- Your fee is usually calculated on the net recovery, after certain litigation expenses are deducted.
- New York law requires your fee agreement to be in writing. It must clearly explain the percentage and how expenses are handled.
- Contingency fee rules for personal injury lawsuits do not apply to fees for collecting no-fault insurance benefits. Those follow a separate structure.
WONDERING WHAT A LAWYER WOULD ACTUALLY COST YOU?
Are you considering legal help after an injury? Want to understand exactly how fees work before committing to anything? Speaking with a personal injury lawyer can clarify your options at no upfront cost.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Every personal injury case is different, and outcomes depend on individual circumstances. Reading this content does not create an attorney-client relationship. If you have been injured and are considering legal action, consult a qualified lawyer who can evaluate the specific facts of your situation.
