How Do I Pay A Personal Injury Lawyer in New York?
Personal injury lawyers will typically represent clients on a contingency-fee-basis. This allows clients to hire an injury attorney without paying upfront for the legal services. The attorney agrees to collect fees once they’ve recovered compensation for the client.
In New York, attorneys are paid a contingency fee of one-third, meaning they will usually collect one-third of your recovery (by verdict or settlement). With a contingency fee agreement, you won’t pay the lawyer an hourly basis for their legal services – in fact, you won’t pay anything up front. Their payment is contingent on whether you recover compensation for your injuries. If you don’t win your case or settle, they don’t get paid.
With a contingency fee arrangement, everyday New Yorkers who would not otherwise be able to afford access to good lawyers will be able to afford the best legal services available.
If you have been injured in New York due to someone’s negligence, don’t let legal fees stop you from seeking the justice and compensation you deserve. Contingency fees make lawyers accessible and affordable. From the attorney’s perspective, the contingency fee is a bit of a gamble: if they don’t win, they don’t get paid.
If you have been seriously injured in New York through no fault of your own, you might be entitled to compensation. The contingent fee arrangement gives Hach & Rose, LLP the ability to bear the risk in our client’s cases. It also gives us the ability to pour all of our firm’s vast resources into your personal injury case.
When you retain the New York personal injury attorneys at Hach & Rose, LLP, you can rest assured that we will do everything in our power to get you the fair compensation you need and deserve. When you enter into a contingency fee agreement with us, it means our interests are entirely aligned. We won’t get paid until you get paid.
What is a Retainer Agreement?
A retainer agreement is a contract you enter into with your lawyer. Until you sign the retainer agreement, the attorney does not work for you. The retainer agreement specifies the contingency fee agreement, and expenses you will be paying. It will also states that the attorney will work diligently on your behalf, and that you will not settle or terminate your claim without advising the attorney.
A personal injury lawyer pays for certain items as the case proceeds. These fees and disbursements may include what the attorney pays for litigation expenses such as court filing fees, investigations, and expert witnesses, among other expenses. If you recover compensation, these amounts will be deducted from your recovery before the attorney takes their one-third cut. If you do not recover compensation, your obligation to pay will be detailed in the retainer agreement you enter into with the personal injury attorney.
What are the Two Options for Contingency Fees in New York?
New York State rules and regulations require New York personal injury attorneys to offer two options for paying the expenses of your case. Either you pay the expenses incurred in the case, or your lawyer does. None of the expenses will come out of your pocket until the case is concluded, but the choice you make determines how the fee is calculated. In general, you should let the attorney bear the risk. After all, that’s why you are paying them. Here’s a more in-depth breakdown of the two options:
You agree to reimburse the attorney for the disbursements paid out on the case regardless of the outcome. The case expenses are taken off the top of the recovery amount, before the attorney’s fees are deducted. When you agree to remain liable for repayment of all costs and expenses, the contingency fee is based on a percentage of the “net sum recovered.” This option may put more money in your pocket because you are assuming the risk of getting stuck with expenses if no recovery is achieved.
You assume some risk with this option because if the case is not successful, you are paying for the expenses.
Example of Option 1
- Total recovery: $100,000
- Less expenses and disbursements: -$10,000
- Less 33 1/3% of remaining -$30,000
- Client’s Recovery : $60,000
In this option, the personal injury attorney agrees to remain liable for all expenses if there is no recovery. Therefore, there is no risk that you will get a bill for the expenses if you lose. If the case is lost, the attorney must foot the bill for the expenses. If the attorney bears this responsibility, the contingency fee is going to be greater to compensate for it. With Option 2 you will see slightly less money if you win. The contingency fee under Option 1 is one-third of the “gross” sum recovered while Option 1 fees are based on the “net” sum.
Example of Option 2
- Total recovery: $100,000
- Less 33 1/3% of $100,000: -$33,333.33
- Less expenses and disbursements: -$10,000
- Client’s Recovery : $56,666.67
Beware of Interest Charges on Expenses
Typically, personal injury clients choose option 2 because they do not take the financial risk. Many law firms borrow on behalf of the clients to pay expenses to pay for the lawsuit. The law firm may turn to a third-party lender to fund the cost of bringing legal action, and often at high interest rates. When you sign a personal injury attorney to retainer, watch out for the law firm asking you to approve interest costs or expenses. This will cost you money. In these situations, the clients end up bearing the interest costs when the case is resolved, often significantly reducing the net-to-client.
At Hach & Rose, LLP, we do not charge expense interests to our clients. We have the resources to handle personal injury cases ourselves and will not go into debt at your expense to handle your case. Our goal is to recover fair compensation for you, and make sure you get what you need to pay your bills and move on with your life.
Costs Associated with Personal Injury Cases
Hach & Rose, LLP takes a 33% fee off the entire settlement and then subtracts the costs we cover during the representation from the remaining balance. These costs are known as disbursements and may include:
- Obtaining evidence, such as medical records
- Payment for expert witness
- Costs of investigation
- Discovery costs
- Deposition costs
- Payment of any court costs and filing fees
- Costs for making copies
- Travel expenses
It’s important to distinguish between fees and costs. They are not the same thing when it comes to personal injury law. Fee refers to the contingency fee, the amount the personal injury lawyer charges for handling a case, which is the percentage of the recovery they will receive as compensation for working on the case. Unlike fees, costs include expenses for everything involved in handling the case.
For example, if you recover $100,000 for your injuries, we will take $33,333, and you will have $66,666 remaining. At this point, we will then deduct costs. Say the costs amounted to $5,000 from the $66,666. That means you will recover $61,666 in total.
Types of Personal Injury Cases We Handle
Types of cases Hach & Rose, LLP handles that involve a contingent fee agreement include:
- Car accidents
- Motorcycle accidents
- Truck accidents
- Bicycle accidents
- Train accidents
- Pedestrian accidents
- Slip and fall accidents
- Nursing home abuse
- Medical malpractice
- Defective products
- Premises liability
The contingent fee agreement gives the New York personal injury lawyers at Hach & Rose, LLP the ability to take all of the risk in our clients’ cases. It gives us the ability to pour all of our resources into building the strongest-possible case. Our clients understand that we’re going to fight tirelessly for them. When they enter into a contingency fee arrangement with our firm, it’s a partnership.
What Sets Hach & Rose, LLP Apart
Many other lawyers will borrow from lawsuit-funding entities to be able to front the costs of handling the personal injury case. This means that the firm is going into debt to handle your case. Unfortunately, this often makes them more motivated to settle your case for an amount that allows them to repay their loan, but ultimately might not be the maximum amount you’re entitled to.
Hach & Rose, LLP never does this. We don’t have to borrow money to handle personal injury cases. Our firm has the resources necessary to see cases through to a jury verdict if need be. We are committed to seeing the case through so that you get every last dollar you need and deserve for your injuries.
At Hach & Rose, LLP, we do not charge expense interests to our clients. We have the resources to handle personal injury cases ourselves and will not go into debt at your expense to handle your case. We will do everything we can to make sure you get what you need to pay your expenses and move forward with your life following the incident that caused your injury.
Our Reputation Speaks for Itself
In addition to our vast resources, our attorneys are well-qualified and experienced. Our attention to detail is unmatched, and our ability to litigate personal injury cases can have an impact on the amount of compensation you get.
Hach & Rose, LLP’s reputation can be a significant factor in your personal injury case. Insurance companies know which law firms are looking to settle quickly, and they know that firms like Hach & Rose, LLP only accept a settlement if it covers all the client’s losses. We won’t hesitate to take your case to trial if the settlement being offered is less than what you deserve.
Contact an Experienced New York Personal Injury Lawyer
Keep in mind that it costs absolutely nothing to retain a personal injury lawyer in New York because of the contingent fee agreement. At Hach & Rose, LLP, we only recover in circumstances where clients recover. Our interests and our clients’ interests are completely aligned, and that’s to get the maximum recovery possible. It is truly a beneficial arrangement for the client because they have absolutely nothing to lose. They have no risk, and we’re only getting paid in circumstances where they are.
Every potential client who calls the offices of Hach & Rose, LLP is entitled to a free initial consultation. We don’t get a cent unless our client successfully recovers compensation, and our clients don’t pay anything unless they recover financially. Call Hach & Rose, LLP at (212) 779-0057 today for a free and confidential case evaluation. We will answer all your questions about your personal injury case and your contingency fees.
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