A no-win, no-fee lawyer is basically a lawyer who agrees to be hired by a client on a contingency fee basis. In a contingency fee arrangement, the lawyer is paid a percentage of the total amount of money that they win for their client. This amount might be the result of settlement negotiations and a settlement agreement between their client and the entity they sue for damages. Or it might be the result of an award of damages after a trial.
The main attraction of hiring a lawyer on a contingency fee basis is the fact that a client does not have to pay their contingency lawyer in New York unless the lawyer wins money for their client. If the lawyer does win a money settlement or judgment for their client, the lawyer then takes a percentage of the total amount won.
If the attorney is not successful, the costs of prosecuting the case would still have to be paid, but the lawyer would not earn any fee to compensate them for the time and effort they devoted to the case. A New York lawyer would be able to provide additional information about how contingency fees work in that state.
New York law allows contingency fee agreements in specific cases, primarily personal injury, medical malpractice, and wrongful death claims.
The New York Rules of Professional Conduct, which apply to all licensed lawyers in New York, regulate attorney compensation, including contingency fees. Rule 1.5 prohibits excessive or unconscionable fees. It provides that the percentages used for contingency fees must be reasonable and justified by the work performed.
Contingency fees are generally not allowed in criminal defense and most family law cases, as public policy discourages attorneys from having a financial stake in these matters.
Whether the costs of prosecuting the case would be borne by the attorney or the client would be a matter on which they would need to agree.
The New York Rules of Professional Conduct for attorneys require them to provide their clients with a written agreement that specifies the percentage of the award of money damages that goes to the attorney for their fee.
The New York Rules of Professional Conduct for attorneys require them to provide their clients with a written agreement that specifies the percentage of the award of money damages that goes to the attorney for their fee.
Furthermore, attorneys must provide their clients with a written “Statement of Client’s Rights.” Both the client and the attorney must sign this agreement. This informs clients of their rights regarding a fee agreement. One right they have is the right to cancel the agreement within 3 business days of signing. This statement ensures that clients know what their attorney’s fee is.
The New York Rules of Professional Conduct also prohibit contingency fees in divorce and criminal defense cases. An attorney who violates these prohibitions may face penalties that could range from reprimands to suspension or loss of their license to practice, depending on how serious the infraction is.
A contingency fee agreement between a lawyer and their client should also specify whether the cost of expenses are to be deducted from the amount of money the lawyer wins for the client or whether a client would pay for them separately.
If the reimbursement for expenses is to be subtracted from the amount recovered, the agreement should also state whether it would be subtracted before or after the contingent fee percentage is applied to calculate the lawyer’s share of the recovery.
Finally, any contingent fee contract should expressly state that if there is no recovery, the client owes the attorney no money.
How To Find a Lawyer Who Will Work On Contingency
LegalMatch.com can connect an individual to a New York lawyer who works on a contingency fee basis. The individual can meet with the lawyer and discuss their fee. An individual who wishes to hire a lawyer should always question the lawyer about how they will charge the individual and how they expect to be paid. As noted above, any contingency fee agreement should be in writing and signed by the client and the lawyer.
Other ways to locate a lawyer who will work on contingency is to ask friends, relatives and colleagues for recommendations of lawyers with whom they might have worked successfully. They could also seek legal advice and referrals from attorneys who do not work on a contingency fee basis.
The New York State Bar Association has a lawyer referral service that offers help in finding a lawyer for the public. It promises help in finding a lawyer or other resources that can aid a person in responding to their legal problems or needs in an affordable manner.
Cities and counties in New York also have bar associations that offer lawyer referral services. For example, the New York City bar association has a legal referral service to which people can turn for referrals to lawyers.
What Is a Contingency Fee for a Lawyer in New York?
As noted above, generally, lawyers who represent clients in personal injury cases work on a contingency fee basis. They would charge a fee that is standard in the community in which they practice.
New York law limits attorney’s fees in medical malpractice cases to a prescribed scale so as to prevent excessive compensation as follows:
- 30 percent of the first $250,000 recovered as compensation for the victim
- 25 percent of the next $250,000 recovered as compensation for the victim
- 20 percent of the next $500,000 recovered as compensation for the victim
- 15 percent of the next $250,000 recovered as compensation for the victim
- 10 percent of any amount over $1,250,000 recovered as compensation for the victim.
Amounts needed to compensate for the expenses of prosecuting the case, e.g., for expert witness fees, should be deducted first.
For other personal injury claims, attorneys typically charge 33.33% of the amount they recover for the client. An individual should understand exactly what their contingency fee is, and New York law requires lawyer-client contingency fee agreements to be in writing.
You may be wondering, “What are the fees for contingency lawyers near me?” LegalMatch can put you in touch with lawyers who can answer your questions and inquiries.
How Is the Percentage Determined?
The lawyer and client agree on the percentage, taking New York rules into account, of course. The lawyer usually suggests a standard fee that they charge. The percentage often depends on how complex the case is, how likely it is to succeed, and the stage at which the case is resolved.
If a settlement is reached before any formal litigation is begun, this may justify lower fees, whereas cases that go to trial often warrant higher percentages due to the added time and resources required to stage a trial.
How Can I Negotiate a Contingency Fee Agreement With a Lawyer?
A prospective client has every right to negotiate a contingency fee agreement with a lawyer. They should know that the percentage a lawyer charges sometimes depends on the complexity or difficulty of a case, the likelihood that the case is going to be successful, and the phase of the litigation process in which the case comes to an end.
As noted above, if a settlement is reached before a lawsuit has to be filed, the percentage would be lower than it would be if there must be a trial in the case. This is because a trial consumes a lot of the lawyer’s time and effort.
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What Types of Lawyers Work on Contingency Fees?
It is mostly in personal injury cases that lawyers accept contingency fee arrangements. A legal consultation would clarify for a client what an attorney’s fees are.
When Are Contingency Fees Not Allowed?
As noted above, in Florida, contingency fees are not allowed in divorce cases, and that includes all cases that involve any of the issues that arise in a divorce, e.g., cases concerning child custody and support. Contingency fees are also generally not allowed in criminal defense cases.
Will I Get Monthly Bills From a Lawyer Paid on Contingency?
Generally, a client should not receive a monthly bill from their lawyer if the lawyer is being paid a contingency fee. As noted above, a lawyer who is being paid a contingency fee might charge a client for the expenses incurred in prosecuting a lawsuit while the lawsuit is in progress.
For example, an individual who initiates a lawsuit by filing a complaint must pay a filing fee to the court in which they file it. Their lawyer may incur expenses in trying to identify and obtain items of evidence that they need to prove their client’s case during the discovery phase of the process.
A contingency lawyer may have to make use of expert witnesses who would have to be paid for their services whether the client’s case is won or not. So this is an expense that is incurred in order to prosecute the case that may have to be paid before the case comes to an end. The lawyer might ask the client to cover these fees as the case progresses.
Other arrangements are possible. For example, the fee agreement might provide that the lawyer has to pay all costs. It might further say that the lawyer will be reimbursed for costs from the recovery when it is received.
In this case, the agreement must state whether costs would be subtracted before the attorney’s percentage is applied or after the attorney’s percentage is applied. Again, how costs are to be paid should be stated in the fee agreement.
What Are the Pros and Cons of Contingency Fee Agreements?
The main advantage of a contingency fee agreement is the fact that the client does not have to pay the attorney unless the attorney recovers an award of money damages for the client. This gives an attorney an added incentive to win an award for their client. The client pays nothing if their case is not successful.
Of course, the disadvantage is that the attorney’s fee reduces the amount of the money damages that a client wins. This amount is supposed to compensate the client for the losses they suffer because of their injury in a personal injury case. Of course, the attorney attempts to recover an amount that is still adequate to compensate their client even after the attorney’s fee is deducted.
However, in some cases, a client might end up with less in damages than they need to be fully compensated for their losses.
Should I Hire a Lawyer on a Contingency Fee Basis?
If you have been harmed by the wrongful act of someone else, whether it was negligent or intentional, you want to consult a contingency lawyer in New York. LegalMatch.com can connect you to a lawyer who can fully explain their contingency fee arrangement and represent your interests in your effort to recover the compensation you deserve.
