Legislation
SECTION 474-A
Contingent fees for attorneys in claims or actions for medical, dental or podiatric malpractice
Judiciary (JUD) CHAPTER 30, ARTICLE 15
§ 474-a. Contingent fees for attorneys in claims or actions for
medical, dental or podiatric malpractice. 1. For the purpose of this
section, the term "contingent fee" shall mean any attorney's fee in any
claim or action for medical, dental or podiatric malpractice, whether
determined by judgment or settlement, which is dependent in whole or in
part upon the success of the prosecution by the attorney of such claim
or action, or which is to consist of a percentage of any recovery, or a
sum equal to a percentage of any recovery, in such claim or action.
2. Notwithstanding any inconsistent judicial rule, a contingent fee in
a medical, dental or podiatric malpractice action shall not exceed the
amount of compensation provided for in the following schedule:
30 percent of the first $250,000 of the sum recovered;
25 percent of the next $250,000 of the sum recovered;
20 percent of the next $500,000 of the sum recovered;
15 percent of the next $250,000 of the sum recovered;
10 percent of any amount over $1,250,000 of the sum recovered.
3. Such percentages shall be computed on the net sum recovered after
deducting from the amount recovered expenses and disbursements for
expert testimony and investigative or other services properly chargeable
to the enforcement of the claim or prosecution of the action. In
computing the fee, the costs as taxed, including interest upon a
judgment, shall be deemed part of the amount recovered. For the
following or similar items there shall be no deduction in computing such
percentages: liens, assignments or claims in favor of hospitals, for
medical care, dental care, podiatric care and treatment by doctors and
nurses, or of self-insurers or insurance carriers.
4. In the event that claimant's or plaintiff's attorney believes in
good faith that the fee schedule set forth in subdivision two of this
section, because of extraordinary circumstances, will not give him
adequate compensation, application for greater compensation may be made
upon affidavit with written notice and an opportunity to be heard to the
claimant or plaintiff and other persons holding liens or assignments on
the recovery. Such application shall be made to the justice of the trial
part to which the action had been sent for trial; or, if it had not been
sent to a part for trial, then to the justice presiding at the trial
term calendar part of the court in which the action had been instituted;
or, if no action had been instituted, then to the justice presiding at
the trial term calendar part of the Supreme Court for the county in the
judicial department in which the attorney has an office. Upon such
application, the justice, in his discretion, if extraordinary
circumstances are found to be present, and without regard to the
claimant's or plaintiff's consent, may fix as reasonable compensation
for legal services rendered an amount greater than that specified in the
schedule set forth in subdivision two of this section, provided,
however, that such greater amount shall not exceed the fee fixed
pursuant to the contractual arrangement, if any, between the claimant or
plaintiff and the attorney. If the application is granted, the justice
shall make a written order accordingly, briefly stating the reasons for
granting the greater compensation; and a copy of such order shall be
served on all persons entitled to receive notice of the application.
5. Any contingent fee in a claim or action for medical, dental or
podiatric malpractice brought on behalf of an infant shall continue to
be subject to the provisions of section four hundred seventy-four of
this chapter.
medical, dental or podiatric malpractice. 1. For the purpose of this
section, the term "contingent fee" shall mean any attorney's fee in any
claim or action for medical, dental or podiatric malpractice, whether
determined by judgment or settlement, which is dependent in whole or in
part upon the success of the prosecution by the attorney of such claim
or action, or which is to consist of a percentage of any recovery, or a
sum equal to a percentage of any recovery, in such claim or action.
2. Notwithstanding any inconsistent judicial rule, a contingent fee in
a medical, dental or podiatric malpractice action shall not exceed the
amount of compensation provided for in the following schedule:
30 percent of the first $250,000 of the sum recovered;
25 percent of the next $250,000 of the sum recovered;
20 percent of the next $500,000 of the sum recovered;
15 percent of the next $250,000 of the sum recovered;
10 percent of any amount over $1,250,000 of the sum recovered.
3. Such percentages shall be computed on the net sum recovered after
deducting from the amount recovered expenses and disbursements for
expert testimony and investigative or other services properly chargeable
to the enforcement of the claim or prosecution of the action. In
computing the fee, the costs as taxed, including interest upon a
judgment, shall be deemed part of the amount recovered. For the
following or similar items there shall be no deduction in computing such
percentages: liens, assignments or claims in favor of hospitals, for
medical care, dental care, podiatric care and treatment by doctors and
nurses, or of self-insurers or insurance carriers.
4. In the event that claimant's or plaintiff's attorney believes in
good faith that the fee schedule set forth in subdivision two of this
section, because of extraordinary circumstances, will not give him
adequate compensation, application for greater compensation may be made
upon affidavit with written notice and an opportunity to be heard to the
claimant or plaintiff and other persons holding liens or assignments on
the recovery. Such application shall be made to the justice of the trial
part to which the action had been sent for trial; or, if it had not been
sent to a part for trial, then to the justice presiding at the trial
term calendar part of the court in which the action had been instituted;
or, if no action had been instituted, then to the justice presiding at
the trial term calendar part of the Supreme Court for the county in the
judicial department in which the attorney has an office. Upon such
application, the justice, in his discretion, if extraordinary
circumstances are found to be present, and without regard to the
claimant's or plaintiff's consent, may fix as reasonable compensation
for legal services rendered an amount greater than that specified in the
schedule set forth in subdivision two of this section, provided,
however, that such greater amount shall not exceed the fee fixed
pursuant to the contractual arrangement, if any, between the claimant or
plaintiff and the attorney. If the application is granted, the justice
shall make a written order accordingly, briefly stating the reasons for
granting the greater compensation; and a copy of such order shall be
served on all persons entitled to receive notice of the application.
5. Any contingent fee in a claim or action for medical, dental or
podiatric malpractice brought on behalf of an infant shall continue to
be subject to the provisions of section four hundred seventy-four of
this chapter.