Car accidents are a frequent occurrence in New York, with approximately 300,000 reported each year, according to the New York Department of Motor Vehicles. These accidents often result in serious injuries, such as traumatic brain injuries (TBI) and spinal cord damage. Despite the potential for life-altering consequences, many accident victims hesitate to hire a lawyer, fearing the cost and opting to handle their claims alone.
After all, aren’t lawyers for wealthy people and big corporations?
Not necessarily. In New York, most car accident attorneys work on a “contingency fee basis,” meaning you don’t pay unless you win. Let’s break down what that means and how it can benefit you.
How does a New York car accident lawyer get paid for their services?
Car accident lawyers in New York work on a contingency fee basis, meaning the attorney only gets paid if they win or settle your case.
In other words, whether the lawyer gets paid is contingent on a successful outcome.
If your lawyer wins at trial or negotiates a settlement with the opposing attorney, they will collect a percentage of the amount you recover. In New York, this percentage is typically one-third (33 percent) of the total verdict or settlement, though it can vary based on the complexity of the case.
It’s important to discuss attorneys’ fees at the very beginning of your case to avoid surprises down the road. Your lawyer should provide a written fee agreement that outlines the costs of their services and the percentage they will take. Be sure to read this agreement carefully, and don’t be afraid to ask questions.
Are contingency fees capped in New York?
Yes, New York law effectively caps contingency fees for personal injury and wrongful death cases at 33 ⅓ percent of the recovery, unless extraordinary circumstances justify a higher fee, which must be approved by the court.
New York's contingency fee structure provides two main options:
| Schedule A | Schedule B |
|---|---|
Schedule A uses a sliding scale for fees:
|
Schedule B allows for a flat fee of up to 33 ⅓ percent of the total recovery, which is the most common arrangement in personal injury cases. This fee must be agreed upon in the initial contract between the client and the attorney. |
Clients also choose how fees are calculated: either on the net recovery (after expenses are deducted) or the gross recovery (before deducting expenses). This must be clearly outlined in the letter of engagement to ensure transparency.
Are there any hidden expenses with contingency fee agreements?
In addition to the attorney’s contingency fee, there are often additional costs involved in handling your case. These can include court filing fees, deposition costs, expert witness fees, charges for obtaining medical records, and other expenses related to preparing and building a strong case.
Generally, your attorney will advance these costs on your behalf and deduct them from your final settlement or judgment. This is beneficial because it allows you to pursue a claim without needing to pay upfront. However, it’s important to clarify how these expenses will be handled in case of an unfavorable outcome. Some attorneys will require you to reimburse these costs even if your case isn’t successful, while others will only deduct them if you win.
Make sure to discuss how these additional expenses will be covered during your initial consultation and confirm whether they are included in the contingency fee or treated separately. This way, you can fully understand the financial obligations involved before moving forward.
Why is it important to hire a New York car accident lawyer?
Hiring an experienced New York car accident lawyer can greatly increase your chances of securing a settlement that fully compensates you for the damages you’ve suffered. Car accident cases can be complex, and navigating New York’s unique laws and insurance requirements without legal expertise can put you at a disadvantage.
A seasoned New York lawyer understands the intricacies of the state's no-fault insurance system, which requires you to seek compensation from your own insurer regardless of who caused the accident. However, in cases involving severe injuries or when medical expenses exceed the no-fault limits, you may be entitled to pursue a claim against the at-fault driver. An experienced lawyer knows how to handle these exceptions and will work to ensure all avenues for compensation are explored.
Additionally, New York follows a comparative negligence rule, which means your compensation could be reduced if you are found partially at fault for the accident. An attorney can help protect you from unfair blame and ensure that your liability is accurately assessed, potentially preserving a larger portion of your settlement.
Strict filing deadlines also make hiring a lawyer essential. New York’s statute of limitations for personal injury cases is generally three years, but the timeframe can vary depending on the specifics of your case, such as if a government entity is involved. Missing these deadlines can result in losing your right to compensation altogether.
Beyond understanding the law, a skilled attorney can assist with gathering and preserving evidence, including police reports, witness statements, and medical records—key factors in building a strong case. They’ll also handle negotiations with insurance adjusters, who often try to settle claims for less than they’re worth. If necessary, your lawyer will represent you at trial, where having legal counsel can make a significant difference in the outcome.
Fortunately, the contingency fee model allows all accident victims to access legal representation, regardless of their financial situation. You don’t have to worry about upfront costs, as your lawyer will only get paid if they successfully recover compensation for you.