The short version
- Most New York injury lawyers work on a contingency fee. No retainer up front, no hourly bill. The lawyer takes a set percentage of what they recover for you — and if there’s no recovery, there’s no fee.
- For ordinary personal injury and car accident cases, that percentage is customarily around one-third (about 33%) of the recovery. What matters just as much is whether your retainer calculates the fee before or after case costs are deducted.
- Case costs (disbursements) are separate from the fee. Court filing fees, medical record charges, expert witness fees, and deposition costs are actual out-of-pocket expenses, usually settled out of the recovery on top of the fee.
- Medical malpractice cases follow a different, lower fee schedule set by statute. New York’s Judiciary Law § 474-a imposes a sliding scale that steps the fee down from 30% to 10% as the recovery grows.
- Workers’ compensation is not a contingency arrangement at all. You don’t pay your lawyer directly; the New York Workers’ Compensation Board approves the fee and it comes out of your award (WCL § 24). A related third-party lawsuit, though, is handled on contingency.
- Net recovery = total recovery − attorney fee − case costs − liens. Medical liens, No-Fault, Medicare/Medicaid reimbursement, and the comp lien (WCL § 29) all come off the top before you see a dime.
The first question in almost every consult isn’t “Can I win?” It’s “What’s this going to cost me?” Fair enough. You’re already hurt, and the fear is that legal fees will eat whatever you recover. But that fear, left unchecked, pushes people into the worst decision of all — handling a serious claim alone and leaving real money on the table. New York injury lawyer fees aren’t a mystery number. They’re built from three defined parts: the contingency fee, case costs, and liens. Here’s how Jay Koo breaks down that structure, and what to check before you sign a retainer.
How are New York injury lawyer fees set in the first place?
New York injury lawyer fees are almost always set on a contingency basis — the lawyer is paid a percentage of the recovery, and only if there’s a recovery. You pay nothing up front to start the case.
The whole point is that the lawyer carries the risk. Unlike commercial litigation billed by the hour, a personal injury or car accident case pays the lawyer only when a result comes in. Recover nothing, and the fee is zero. That structure is what lets an injured client go toe-to-toe with an insurer that has far deeper pockets.
“No fee unless you win” doesn’t mean “free,” though. The fee and the case costs (disbursements) are two different things, and any firm that blurs that line is one to watch. In practice, when that distinction gets glossed over at signing, it comes back as an argument over the settlement statement months later.
- Contingent on results: a fee exists only if there’s a settlement or judgment.
- No retainer up front: the client generally pays nothing to open the case.
- A written retainer agreement: the percentage, the cost-handling terms, and the calculation basis must be spelled out in writing.
What percentage is the fee, and what is it calculated on?
For ordinary personal injury and car accident cases, the contingency fee is customarily about one-third (roughly 33%) of the recovery, and the number written in your retainer is the number that governs. There’s no fixed statutory rate for these cases — it’s set by contract.
The percentage matters less than the answer to one question: one-third of what? The same 33% produces very different take-home numbers depending on what it’s applied to.
| Calculation basis | How it works | Effect on the client |
|---|---|---|
| Net of costs | Case costs are subtracted first, then the percentage is applied to the remainder | Often more favorable to the client |
| Gross recovery | The percentage is applied to the full recovery, then costs come off separately | Can produce a larger fee |
| Graduated rate | Some retainers raise the percentage as the case moves toward trial | Fee rises when a case goes the distance |
Read the retainer for one line: is the fee taken “net of expenses” or on the “gross”? That single clause can move the final settlement statement meaningfully. That’s the first thing Jay Koo walks a client through — the basis comes before the number.
Why contingency favors you is clearest in reverse. As covered in what not to say to an insurance adjuster after a New York injury, the adjuster opens low and negotiates down from there. Under a contingency fee, the lawyer’s pay grows as the recovery grows — so the incentives line up with yours, not the insurer’s.
How are case costs different from the fee?
Case costs, or disbursements, are the real expenses of running the case, and they are entirely separate from the attorney’s fee. If the fee pays for the lawyer’s work, disbursements pay for what the case itself consumes.
The common ones add up fast, especially once a case moves into litigation.
- Medical records and imaging: the cost of obtaining charts, MRIs, and X-rays from providers.
- Expert witness fees: physicians, economists, and other experts who write reports and testify — often the single largest cost in an injury suit.
- Court filing, subpoena, and service fees: the cost of filing suit and compelling witnesses.
- Deposition and stenographer fees: putting sworn testimony on the record.
Who advances these costs, and when, is another retainer question. Usually the firm fronts the costs as the case runs and settles up out of the recovery at the end. The real issue is what happens to those costs if the case loses or recovers nothing — do you owe them? Policies differ, so ask exactly how your retainer handles it. Once you understand how New York personal injury settlements are actually valued, it becomes clear why spending on strong evidence and expert proof is an investment that grows the net recovery rather than a drain on it.
Why are medical malpractice fees calculated differently?
In New York, attorney fees in medical malpractice cases follow a descending sliding scale fixed by statute — the fee schedule in Judiciary Law § 474-a. The percentage drops as the recovery climbs, which sets these cases apart from the flat ~33% of ordinary injury claims.
This scale is a cap the state built into the law to protect clients. A retainer cannot charge more than it allows.
| Recovery tier | Maximum fee |
|---|---|
| First $250,000 | 30% |
| Next $250,000 | 25% |
| Next $500,000 | 20% |
| Next $250,000 | 15% |
| Amount over $1,250,000 | 10% |
The key is that the rate applies tier by tier, not as one flat number. On a large malpractice recovery, the lower tiers at the top pull the blended fee rate below what an ordinary injury case would charge. So in malpractice, understanding the tier structure — not a single percentage — is where an honest take-home estimate starts.
Of course, the fee structure only matters if the case is worth bringing at all. Work through whether it’s actually worth suing your doctor in New York first, and this fee scale becomes something you can actually apply.
Why isn’t workers’ comp handled on contingency?
New York workers’ compensation is not a contingency arrangement. You don’t pay your attorney directly — the Workers’ Compensation Board approves the fee, and it’s deducted from your award (WCL § 24). There’s no retainer and nothing out of your pocket to start.
In a comp case, the Workers’ Compensation Board reviews and approves the attorney’s fee based on the work done and the benefits secured. The approved fee is taken out of what’s payable to you, so you never write a separate check. If your claim was denied or is being contested, that structure means you can get a lawyer’s help without a cost barrier.
The wrinkle is when comp and a third-party lawsuit overlap. On a construction accident, for example, you may pursue comp benefits and, separately, a damages suit against a general contractor or manufacturer. That third-party suit is handled on a standard contingency fee.
- The comp side: a Board-approved fee, deducted from the award (WCL § 24). Nothing paid directly by you.
- The third-party side: a contingency fee (customarily around one-third).
- The comp lien (WCL § 29): benefits already paid through comp give the carrier a lien to be reimbursed out of a third-party recovery. Negotiating that lien is what moves your net number.
How the comp benefit itself is calculated is a separate axis — see how New York workers’ comp settlements are valued. Fee method and benefit valuation are two different questions, and you need both to see the whole picture.
How is your net recovery actually calculated?
Net recovery is the total recovery minus the attorney’s fee, minus case costs, minus every lien — taken in that order. The settlement or judgment figure is not the money that lands in your hands.
The most common misread is “a $100,000 settlement means $100,000 to me.” What actually happens is a sequence of deductions.
| Step | Deduction | What it covers |
|---|---|---|
| 1 | Total recovery | The settlement or judgment (already reduced if comparative negligence applied) |
| 2 | − Attorney fee | The contracted contingency fee (about 33%, or the § 474-a scale in malpractice) |
| 3 | − Case costs | Experts, medical records, court fees, and other actual disbursements |
| 4 | − Lien reimbursement | Medical liens, No-Fault, Medicare/Medicaid, the comp lien, and similar |
| = | Net recovery | What the client ultimately takes home |
Here’s the part people miss — lien negotiation is the last lever on your net recovery. The hospital that treated you, the No-Fault insurer, and Medicare/Medicaid all want to be repaid out of the recovery. Medicare’s right to reimbursement under the Medicare Secondary Payer rules is especially strong under federal law, and leaving it unresolved can stall the final payout or shrink your take-home more than expected. How far a lawyer knocks those liens down is what separates a seasoned attorney from an average one.
A quick hypothetical to show the order (illustrative numbers only, not a real case): on a $300,000 recovery, a one-third fee ($100,000) and $20,000 in costs leave $180,000; reimburse a $30,000 medical/No-Fault lien and the net recovery is $150,000. Every case’s numbers differ wildly, but the order and the categories of deductions don’t leave this frame. That’s why Jay Koo runs these four lines in front of a client before any settlement decision — you can’t make a real choice until you know the number you’ll actually keep.
Frequently asked questions (FAQ)
Q. Do I have to pay a retainer up front to hire a New York injury lawyer?
For most personal injury and car accident cases, no — they’re handled on a contingency fee, so there’s no up-front retainer. The lawyer is paid a percentage of the recovery (customarily around one-third) only if there’s a recovery. Check the retainer for how case costs are handled, though.
Q. If the fee is 33%, does the lawyer just take 33% of my settlement?
No. On top of the attorney fee, case costs (experts, records, court fees) and liens (medical, No-Fault, Medicare, and others) are deducted separately. Your net recovery is the total minus all three. Also confirm whether the 33% is calculated on the “gross” recovery or “net of costs.”
Q. Are medical malpractice fees also 33%?
No. New York caps attorney fees in medical malpractice cases through the sliding scale in Judiciary Law § 474-a. The rate steps down from 30% to 10% as the recovery grows across tiers, and it’s a statutory ceiling a retainer cannot override.
Q. How do I pay a lawyer in a workers’ compensation case?
Comp isn’t a contingency arrangement. The New York Workers’ Compensation Board approves the fee and it’s deducted from your award (WCL § 24) — you don’t pay directly. If you also pursue a separate third-party lawsuit, that portion is handled on contingency.
Q. What is a lien, and why does it affect my net recovery?
Treating hospitals, No-Fault insurers, Medicare/Medicaid, and comp carriers all have a right to be repaid out of your recovery. Medicare’s reimbursement right under federal law is especially strong. If those liens aren’t resolved and negotiated down, the amount you actually take home drops sharply.
Putting off a consultation because you’re afraid of the fee is the most expensive move you can make. Under a contingency fee, it costs nothing to start, and the lawyer’s pay rises only as your recovery does. The real work is reading the calculation basis in the retainer and factoring in costs and liens so you know your true net recovery before you agree to anything. Jay Koo lays that structure out plainly before you sign, and pushes the lien negotiation to the end to protect what you take home.
