How Much Will NYC Injury Attorney Charge to Handle the Case in New York? Read here!
When you’ve been injured in New York, you may be wondering how much it will cost to hire a personal injury attorney to handle your case. New York personal injury lawyers typically work on a contingency fee basis, which means they take a percentage of the recovery. In this article, we’ll delve into the specifics of how these fees are calculated and what you can expect in terms of costs.
New York Personal Injury Lawyer Cost
In New York, the standard fee for personal injury cases is almost always one-third (1/3) of the sum recovered, equivalent to 33.33% of the total compensation. However, it’s essential to note that there is an exception to this fee structure in medical malpractice cases, where a sliding scale may apply. In this article, we’ll focus on the general contingency fee structure that applies to most personal injury cases in New York.
Contingency Fee Basis in New York
New York personal injury lawyers work on a contingency fee basis, which is a fundamental aspect of how they charge for their legal services. This arrangement means that your personal injury attorney doesn’t collect a fee until your case has been successfully resolved, resulting in a positive monetary recovery. Whether your injury resulted from a car accident in Brooklyn or a slip and fall in the Bronx, this fee structure is consistent.
In practical terms, your attorney only gets paid if you walk away from your case with a financial recovery through either a settlement or a verdict.
Payment Option 1: Percentage of Net Recovery
Under the first payment option, the case expenses are deducted from the total personal injury settlement amount before calculating the contingency fee. The attorney’s fee, which is one-third of the net recovery, is then applied. This option is often described as 1/3 of the net recovery or 1/3 of the profit from the case.
In this scenario, there is a slight element of risk for the client. If the case is unsuccessful, the attorney may have the right to charge the client for the expenses incurred during the legal process, which are typically paid out of the attorney’s pocket. However, in practice, this risk is minimal, as most firms would not bill a client for case expenses in the event of a loss.
For taking on this risk, the client can enjoy some savings when the case concludes. The fee is calculated after the case expenses are deducted, allowing the client to save one-third of the expenses. For example, if the case expenses were $1,500.00, the client would receive $500.00 more under Option 1.
Payment Option 2: Percentage of Total Recovery
The second payment option alters the fee structure slightly. In this case, the one-third fee is calculated based on the total recovery, rather than the net recovery. This means that the attorney’s fee amounts to one-third of the full settlement amount. The client is responsible for reimbursing the attorney for the case expenses from their portion of the settlement.
Under this option, there is no risk of the client receiving a bill for the case expenses in the event of a loss. However, the trade-off is that the client will receive slightly less money if the case is successful. In this scenario, the expenses are paid out of the client’s share of the settlement proceeds, and the attorney does not contribute to these costs. Consequently, the client loses out on the one-third contribution towards expenses that they would receive under Option 1. For instance, if the case expenses amounted to $1,500.00, the client would receive $500.00 less under Option 2.
How Are Expenses Covered in New York Personal Injury Cases?
In a personal injury case, the expenses associated with the legal process are typically fronted by the personal injury lawyer. These expenses are essential to advance the case, and they encompass tasks such as investigating the incident, hiring investigators or engineers, obtaining medical records, filing lawsuits, serving defendants, paying court filing fees, conducting depositions, creating demonstrative evidence, and preparing the case for trial. Ultimately, these expenses must be repaid at the conclusion of the case, effectively acting as a zero-interest loan.
The average expenses in a personal injury case can vary significantly, depending on the type of case and the extent to which it is litigated. For instance, the expenses for a straightforward car accident case that settles within six months will be much lower than those for a complex construction site accident case that has been fully litigated for four years.
Examples of NY Personal Injury Lawyer Fees
To provide a practical understanding of how fees and expenses work in personal injury cases, let’s consider two examples:
Client A: This client was involved in a rear-end car accident resulting in a herniated disc in the neck and a torn meniscus in the knee. The insurance company initially offered no compensation, deeming the injuries not serious under New York law. The case proceeded to a lawsuit against the vehicle owner and driver, involving depositions and significant litigation. The estimated expenses for this case range from approximately $1,000.00 to $1,500.00.
Client B: This client tripped and fell over a raised sidewalk in Manhattan, leading to a fractured wrist that required surgery. An engineer was hired to investigate the accident location. The case involved litigation against the building owner, the management company, the ground floor tenant, and a contractor who had previously performed work in that area. The case proceeded to depositions and eventually settled at mediation. The estimated expenses for this case range from $3,500.00 to $5,000.00.
It’s important to note that these are just examples, and each personal injury case is unique. The expenses and fees can vary significantly based on the specific circumstances and complexity of the case.
In conclusion, when hiring a personal injury attorney in New York, it’s essential to understand the contingency fee structure and the two payment options available. Clients should consider their individual circumstances and preferences when selecting the payment option that best suits their needs and risk tolerance. Additionally, clients should be aware of the expenses associated with their case, as these can vary depending on the type and complexity of the legal proceedings.