Bill Text: NY A03014 | 2019-2020 | General Assembly | Introduced

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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

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                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.
                                                                   LBD07297-01-9
        A. 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.