Bill Text: NY A05190 | 2013-2014 | General Assembly | Introduced

---

Bill Title: Limits contingent fees to attorneys in actions for property damage or personal injury, including death.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2014-01-08 - referred to judiciary [A05190 Detail]

Download: New_York-2013-A05190-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5190
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 21, 2013
                                      ___________
       Introduced  by  M. of A. ORTIZ, CASTRO -- Multi-Sponsored by -- M. of A.
         HIKIND, ROBINSON -- read once and referred to the Committee on Judici-
         ary
       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    S  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.
                                                                  LBD08654-01-3
       A. 5190                             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    S 2. This act shall take effect immediately.