New York — Contingency Fee Rules

How Are Contingency Fees Regulated in This State?

Direct Answer: New York permits contingency fees in personal injury and most civil cases. Medical malpractice fees follow a strict sliding scale under Judiciary Law §474-a (30% of first $250,000, descending to 10% above $1.25M). General PI cases typically use a flat 33⅓% under court rule 22 NYCRR 1215.

New York does not impose a statutory cap on contingency fees in general personal injury cases. The market standard is 33⅓% of the net recovery. Fees must be "fair and reasonable" under New York Rules of Professional Conduct Rule 1.5.

In medical, dental, and podiatric malpractice cases, Judiciary Law § 474-a mandates a sliding scale:

• 30% of the first $250,000
• 25% of the next $250,000
• 20% of the next $500,000
• 15% of the next $250,000
• 10% of any amount exceeding $1,250,000

All contingency fee agreements must be in writing under RPC Rule 1.5(c), clearly stating the percentage, how disbursements and costs are handled, and whether the fee is calculated before or after expenses are deducted.

Statute of Limitations

New York-Specific Considerations

Pure comparative negligence: New York follows pure comparative fault under CPLR § 1411. A plaintiff can recover even if 99% at fault, with the award reduced by their percentage of responsibility.

No-fault auto insurance: New York is a no-fault state. To bring a lawsuit for pain and suffering, the plaintiff must demonstrate a "serious injury" as defined by Insurance Law § 5102(d), which includes significant disfigurement, bone fracture, or substantial limitation of a body function.

Scaffolding law (Labor Law §§ 240/241): New York's unique scaffold law imposes absolute liability on property owners and general contractors for gravity-related injuries at construction sites. These cases are frequently handled on a contingency fee basis.

No general tort reform caps: Unlike many states, New York has no statutory cap on non-economic damages in personal injury or medical malpractice cases. Juries have significant discretion in awarding pain and suffering damages.

Contingency fees are prohibited in domestic relations matters. The contingency-fee rules above apply to personal injury, medical malpractice and similar civil claims — they do not apply to divorce or family law. Under 22 NYCRR § 1400.3, a lawyer may not charge a fee contingent on securing a divorce, annulment or legal separation, or calculated as a percentage of the amount of alimony, maintenance, child support or equitable distribution obtained. Domestic relations matters in New York are handled on an hourly or fixed-fee basis instead.