Thursday, April 17, 2014

Appellate Division amends rule concerning contingency fee arrangements

Thank you to Mike Ross, who presented to the NYS Academy of Trial Lawyers on this topic.  The old rule permitted 1/3 of the net recovery, whereas the new rule permits either (1) 1/3 of net recovery (i.e., fee calculated & deducted after costs are paid) IF client pays disbursements as they become due (or uses evergreen account) or (2) 1/3 of gross recovery (i.e., fee calculated & deducted before costs are paid).  This rule does not apply to medical malpractice actions.  It is important to revise retainer agreements to explain this choice in clear language. 


Post a Comment

<< Home