Bill Text: NY A03014 | 2019-2020 | General Assembly | Introduced
Bill Title: Limits contingent fees to attorneys in actions for property damage or personal injury, including death.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to judiciary [A03014 Detail]
Download: New_York-2019-A03014-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3014 2019-2020 Regular Sessions IN ASSEMBLY January 28, 2019 ___________ Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Judiciary AN ACT to amend the judiciary law, in relation to contingent fees for attorneys The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 474-a of the judiciary law, as amended by chapter 2 485 of the laws of 1986, is amended to read as follows: 3 § 474-a. Contingent fees for attorneys in claims or actions for 4 medical, dental or podiatric malpractice, or in any claim or action for 5 property damage or personal injury, including death. 1. For the purpose 6 of this section, the term "contingent fee" shall mean any attorney's fee 7 in any claim or action for medical, dental or podiatric malpractice, or 8 in any claim or action for property damage or personal injury, including 9 death, whether determined by judgment or settlement, which is dependent 10 in whole or in part upon the success of the prosecution by the attorney 11 of such claim or action, or which is to consist of a percentage of any 12 recovery, or a sum equal to a percentage of any recovery, in such claim 13 or action. 14 2. Notwithstanding any inconsistent judicial rule, a contingent fee in 15 a medical, dental or podiatric malpractice action, or in any claim or 16 action for property damage or personal injury, including death, shall 17 not exceed the amount of compensation provided for in the following 18 schedule: 19 30 percent of the first $250,000 of the sum recovered; 20 25 percent of the next $250,000 of the sum recovered; 21 20 percent of the next $500,000 of the sum recovered; 22 15 percent of the next $250,000 of the sum recovered; 23 10 percent of any amount over $1,250,000 of the sum recovered. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07297-01-9A. 3014 2 1 3. Such percentages shall be computed on the net sum recovered after 2 deducting from the amount recovered expenses and disbursements for 3 expert testimony and investigative or other services properly chargeable 4 to the enforcement of the claim or prosecution of the action. In comput- 5 ing the fee, the costs as taxed, including interest upon a judgment, 6 shall be deemed part of the amount recovered. For the following or 7 similar items there shall be no deduction in computing such percentages: 8 liens, assignments or claims in favor of hospitals, for medical care, 9 dental care, podiatric care and treatment by doctors and nurses, or of 10 self-insurers or insurance carriers. 11 4. In the event that claimant's or plaintiff's attorney believes in 12 good faith that the fee schedule set forth in subdivision two of this 13 section, because of extraordinary circumstances, will not give him 14 adequate compensation, application for greater compensation may be made 15 upon affidavit with written notice and an opportunity to be heard to the 16 claimant or plaintiff and other persons holding liens or assignments on 17 the recovery. Such application shall be made to the justice of the trial 18 part to which the action had been sent for trial; or, if it had not been 19 sent to a part for trial, then to the justice presiding at the trial 20 term calendar part of the court in which the action had been instituted; 21 or, if no action had been instituted, then to the justice presiding at 22 the trial term calendar part of the Supreme Court for the county in the 23 judicial department in which the attorney has an office. Upon such 24 application, the justice, in his discretion, if extraordinary circum- 25 stances are found to be present, and without regard to the claimant's or 26 plaintiff's consent, may fix as reasonable compensation for legal 27 services rendered an amount greater than that specified in the schedule 28 set forth in subdivision two of this section, provided, however, that 29 such greater amount shall not exceed the fee fixed pursuant to the 30 contractual arrangement, if any, between the claimant or plaintiff and 31 the attorney. If the application is granted, the justice shall make a 32 written order accordingly, briefly stating the reasons for granting the 33 greater compensation; and a copy of such order shall be served on all 34 persons entitled to receive notice of the application. 35 5. Any contingent fee in a claim or action for medical, dental or 36 podiatric malpractice, or in any claim or action for property damage or 37 personal injury, including death, brought on behalf of an infant shall 38 continue to be subject to the provisions of section four hundred seven- 39 ty-four of this [chapter] article. 40 § 2. This act shall take effect immediately.
