The Second Department of the Appellate Division of New York Supreme Court is tinkering with the time-honored rule in personal injury cases - the plaintiff;s law firm fronts the costs, pays itself back off the top, and calculates the contingent fee on the net recovery. Eric Turkewitz reports and discusses the issues. - gwc
New York Changing Its Contingency Fee Formula – New York Personal Injury Law Blog:
But New York’s second appellate department has now changed rule NYCRR § 691.20(e), which formerly read that the fee:
shall be computed on the net sum recovered after deducting from the amount recovered expenses and disbursements for expert medical testimony and investigative or other services properly chargeable to the enforcement of the claim or prosecution of the action.
Now, however, counsel is permitted to give the new clients a choice of how they wish to do it. The clients can either front the costs themselves (which most are economically unable to do) and allow the fee to be calculated against the net, or the clients may elect to have the lawyer front the costs at her own risk and have the fee calculated against the gross. Here’s the new rule: Contingency Fees in PI Rule Change
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