How do contingency fees work for Personal Injury cases in New York?
What you need to know
Most people who are injured cannot afford to pay a lawyer by the hour. That is why Personal Injury attorneys in New York work on contingency — you pay nothing unless your lawyer recovers money for you.
How the Fee Is Calculated
In New York, Personal Injury contingency fees are regulated by Judiciary Law §474-a, which sets a sliding scale for cases involving infants or courts — but the industry standard for adult PI cases is typically one-third (33.3%) of the gross recovery before trial. If the case goes to trial or appeal, the percentage may increase slightly based on the retainer agreement.
What Comes Out of the Settlement
The contingency fee is taken from the total recovery, but so are case expenses — filing fees, expert witness costs, medical record fees, deposition transcripts, and investigator costs. These expenses are itemized and deducted separately from the settlement. You should receive a written statement showing exactly how the recovery is divided.
No Fee Unless We Win — What That Really Means
If your case does not result in a recovery — whether through settlement, verdict, or arbitration — you owe nothing in attorney fees. Some firms also absorb case expenses in losing cases; others do not. Ask your attorney upfront how expenses are handled if the case is lost.
Why This Matters for Injured New Yorkers
The contingency system levels the playing field. Insurance companies have unlimited legal resources. A contingency arrangement gives every injured person — regardless of income — access to experienced representation. Under Insurance Law §5102 and the serious injury framework, building a strong case requires real investment: medical experts, accident reconstruction, and depositions. No fee unless we win.
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