What is a Contingency Fee in NY?

Hiring a lawyer can be a daunting decision, especially if you’re worried about the costs involved. Many people who have suffered injuries due to accidents, medical malpractice, or other incidents hesitate to seek legal help because they fear high attorney fees. Fortunately, contingency fee agreements make legal services more accessible by allowing clients to hire an attorney without any upfront costs.

A contingency fee lawyer in New York works under a “no win, no fee” arrangement, meaning they only get paid if they successfully recover compensation for you. If they fail to win your case, you owe them nothing for their services. This type of agreement ensures that people from all financial backgrounds can access legal representation and pursue justice without the burden of immediate legal expenses.

This guide provides a detailed explanation of how contingency fees work, what percentage lawyers typically take from settlements, and key considerations when hiring a contingency lawyer in New York.

What Is a Contingency Fee and How Does It Work?

A contingency fee is a payment structure in which a lawyer’s compensation is tied to the outcome of a case. Instead of charging an hourly rate or requiring an upfront retainer, the lawyer’s fee is a percentage of the total settlement or court award. If the case is unsuccessful, the client does not pay any attorney fees.

Step-by-Step Breakdown of a Contingency Fee Agreement

1. Free Consultation – Most contingency fee lawyers provide a free initial case evaluation. During this meeting, they assess your case and determine if it has merit.
2. Signing a Contingency Agreement – If the lawyer agrees to take your case, both parties sign a written contract that specifies the percentage they will take if they win.
3. Legal Representation Begins – The lawyer starts working on your case, including investigating evidence, negotiating with insurance companies, and preparing for trial if necessary.
4. Settlement or Verdict – If the case is resolved successfully, the lawyer receives a percentage of the total settlement before the remaining funds are given to you.
5. No Payment If You Lose – If your lawyer fails to win the case, you do not owe any legal fees.

This type of agreement is commonly used in personal injury, medical malpractice, employment disputes, and wrongful death cases.

 

What Percentage Do Lawyers Take From a Settlement in New York?

The percentage a lawyer takes from a settlement depends on the type of case, the complexity of the claim, and legal regulations in New York.

For personal injury cases, most attorneys charge 33.3 percent, meaning they take one-third of the total settlement. This means that if you win a $300,000 case, your attorney will take $100,000 as their fee, and you will receive the remaining $200,000 (minus any case-related expenses).

In medical malpractice cases, New York follows a sliding scale structure:

• 30 percent of the first $250,000 of the settlement
• 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 exceeding $1.25 million

For wrongful death lawsuits, the fee is typically 33.3 percent, though some cases may allow for variations.

For car accident cases, contingency fees generally range between 25 and 40 percent, depending on the severity of the accident and the complexity of the legal process.

It is essential to review your contingency fee agreement carefully and clarify with your lawyer what percentage will be deducted before signing any contract.

 

Are Contingency Fees Legal in New York?

Yes, contingency fees are legal and regulated in New York. The New York State Bar Association has established rules to ensure that contingency agreements are fair and transparent.

Key Regulations for Contingency Fees in New York

1. Lawyers Must Provide a Written Agreement – New York law requires that contingency fee agreements be in writing. The agreement must clearly outline the fee percentage and any additional costs.
2. Maximum Fee Limits Apply – In most personal injury cases, lawyers cannot charge more than 33.3 percent of the settlement.
3. Sliding Scale Fees for Medical Malpractice Cases – New York law caps contingency fees for medical malpractice cases based on a tiered structure, ensuring that clients do not pay excessive legal fees.
4. Clients Must Be Notified of All Deductions – Lawyers must provide a detailed breakdown of all costs and deductions before disbursing a settlement.
5. Ethical Guidelines Must Be Followed – Attorneys cannot mislead clients about their fees or inflate costs beyond what is agreed upon.

If a lawyer tries to charge more than the legally allowed percentage, they must provide justification for their fees.

 

Do I Have to Pay My Lawyer If I Lose My Case?

The biggest benefit of hiring a contingency fee lawyer in New York is that you do not have to pay attorney fees if you lose your case. However, some law firms may require clients to cover certain case-related expenses, such as court filing fees or expert witness costs.

Possible Additional Expenses

1. Court filing fees – Charges for submitting legal documents.
2. Expert witness fees – Payments for medical professionals, accident reconstructionists, or forensic specialists.
3. Investigation costs – Expenses related to gathering evidence.
4. Administrative fees – Charges for case preparation, photocopies, and document processing.

Some law firms pay these expenses upfront and deduct them from the final settlement, while others may require clients to pay for these costs separately. Before signing a contingency fee agreement, ask your lawyer if you will be responsible for these expenses.

 

How to Find the Best Contingency Lawyer in New York

Choosing the right lawyer can make a significant difference in the outcome of your case. A highly skilled attorney can maximize your compensation and ensure that your rights are protected.

What to Look for in a Contingency Lawyer

1. Experience in Your Case Type – Ensure the lawyer specializes in personal injury, medical malpractice, or wrongful death cases.
2. Proven Track Record of Success – Look for an attorney with a history of successful settlements and verdicts.
3. Transparent Fee Structure – A reputable lawyer should clearly explain their fees, additional costs, and settlement process.
4. Strong Client Reviews – Check online reviews from past clients on Google, Avvo, and law firm websites.
5. Willingness to Go to Trial – Some lawyers push for quick settlements rather than going to trial. Choose an attorney who is prepared to fight for maximum compensation.

Questions to Ask a Lawyer Before Hiring

1. What percentage will you take from my settlement?
2. Will I have to pay any expenses if I lose my case?
3. How long do you expect my case to take?
4. What is your experience with cases like mine?
5. How will you keep me updated on my case progress?

By asking these questions, you can find the best contingency lawyer in New York for your case.

 

Frequently Asked Questions (FAQs)

What percentage do lawyers take from a settlement in New York?
Most lawyers working on a contingency fee basis in New York take 33.3 percent of the total settlement, which means they receive one-third of the final compensation amount. However, the percentage can vary depending on the type of case, with medical malpractice cases following a tiered sliding scale.

Can I negotiate a lawyer’s contingency fee?
Yes, in some cases, you may be able to negotiate a lower percentage, especially if your case is expected to result in a high settlement. Some attorneys are open to adjusting their fees depending on the complexity and potential value of the case. It is always best to discuss fee arrangements upfront before signing a contingency agreement.

Do I have to pay any legal fees if I lose my case?
If your lawyer is working on a pure contingency basis, you do not have to pay any attorney fees if you lose your case. However, some law firms require clients to cover additional costs such as court filing fees, expert witness fees, and administrative expenses, even if the case is unsuccessful. It is important to clarify whether you will be responsible for any out-of-pocket costs before signing an agreement.

What happens if my case doesn’t settle and goes to trial?
If your case does not settle, your lawyer may proceed to trial, which can extend the duration of the legal process. Contingency fee agreements usually apply whether the case settles or goes to court. Some lawyers may charge a higher contingency percentage if the case goes to trial due to the additional time and resources required.

Are contingency fees legal in New York?
Yes, contingency fees are completely legal in New York and are regulated by state law. Attorneys must provide a written agreement that clearly explains the percentage they will take and any potential deductions. The state also enforces maximum limits on contingency fees, particularly in medical malpractice cases, to ensure fairness and transparency.

 

Contact Marvin A. Cooper, P.C. Today

If you need legal help but are concerned about costs, a contingency fee lawyer can assist you. Many experienced attorneys offer free consultations to evaluate your case and help you understand your legal options.

Do not let financial concerns stop you from pursuing the compensation you deserve. Contact Marvin A. Cooper, P.C. today and take the first step toward justice.