How Much Does a Personal Injury Lawyer Cost in New York?

Cost is one of the first things people worry about when they consider hiring a personal injury lawyer. Understanding how the fee works, and what to ask before you sign a fee agreement, puts you in control of the relationship from day one.

How an Outcome-Based Fee Works

In many personal injury matters the attorney’s fee is a percentage of the money recovered on your behalf, paid at the conclusion of the case either by settlement or after a trial verdict. The percentage and the way it is calculated are set out in a written agreement.

This arrangement lets injured people bring a claim without paying an hourly rate up front. Hourly billing is a different model, and an attorney who bills hourly will explain the rate and the expected work before you agree.

What Does the Fee Agreement Have to Say?

New York’s Rules of Professional Conduct (Rule 1.5(c)) require a lawyer, promptly after being hired in a matter where the fee depends on the outcome, to give the client a writing that states:

• The method by which the fee is determined, including the percentage or percentages that apply if the case settles, goes to trial, or is appealed
• The litigation and other expenses to be deducted from the recovery
• Whether those expenses are deducted before or after the fee is calculated
• Any expenses the client will be responsible for even if the client does not prevail

At the end of the matter the lawyer must also provide a writing stating the outcome and, if there is a recovery, showing how the money was divided.

What Are Case Expenses, and Who Pays Them?

Separate from the attorney’s fee are case expenses: the out-of-pocket costs of investigating and litigating a claim.

Typical case expenses include:

• Filing fees to commence a lawsuit in court
• Process server fees to serve the defendant
• Medical record retrieval fees from hospitals and providers
• Expert witness fees for physicians, accident reconstructionists, and vocational experts
• Deposition transcript costs
• Court reporter fees
• Investigation costs (police reports, scene investigation, surveillance)
• Mediation or arbitration fees in some disputes

How expenses are typically handled: New York’s Rules of Professional Conduct permit a lawyer to advance court costs and expenses of litigation, with repayment that may depend on the outcome of the matter. Your agreement should say whether the expenses are deducted from the gross settlement before or after the attorney’s percentage is calculated, because the difference can be meaningful on larger cases.

Before vs. After: Why the Math Matters

The order of deductions affects your take-home recovery. The numbers below are a made-up illustration only. They are not Seraj Law’s fee and not a statement of what any attorney charges. Suppose a $100,000 settlement, a 30% fee, and $10,000 in case expenses:

Expenses deducted before the fee is calculated:

• Gross settlement: $100,000
• Minus expenses: ($10,000)
• Net: $90,000
• Attorney fee (30% of $90,000): $27,000
• Client recovery: $63,000

Expenses deducted after the fee is calculated:

• Gross settlement: $100,000
• Attorney fee (30% of $100,000): $30,000
• Minus expenses: ($10,000)
• Client recovery: $60,000

The difference grows in cases with substantial expert witness costs. Ask your attorney to walk through the math before you sign the fee agreement.

Do More Complex Cases Cost More?

Complex cases, such as those involving disputed liability, serious injuries requiring several expert witnesses, or commercial defendants, usually generate higher case expenses. How those expenses are advanced and repaid is something the fee agreement should spell out.

Questions to Ask Before Signing a Fee Agreement

1. What percentage do you charge, and does it change if a lawsuit is filed?
2. Will you advance case expenses, and are they deducted before or after your fee is calculated?
3. What happens if there is no recovery: am I responsible for any costs?
4. Will you update me before incurring any expense over a certain threshold?
5. Is there anything in writing that explains the fee agreement clearly?

If an attorney is reluctant to give you a written fee agreement, that is a red flag.

Personal Injury Fees at Seraj Law

If you would like to talk about your situation, contact Seraj Law to ask about a free consultation. We will walk you through the fee structure in plain language before you make any decisions.

Personal injury matters are handled on a contingency-fee basis under a written retainer agreement: no attorney fee is charged if there is no recovery. You may still be responsible for court costs and case expenses, and the retainer agreement states whether those are deducted before or after the fee is calculated.