When you go to the supermarket, do you know what to expect a gallon of milk to cost? If you are a careful shopper, you should. What about when you go to see a New York personal injury lawyer? Do you know?
First, you need to understand some basic concepts. The “gross recovery” in a personal injury case means the full amount of money the insurance company pays to settle the claim or to satisfy the judgment after trial. The “net recovery” means the insurance company’s payment minus expenses. The “expenses” on a personal injury are all the monies your attorney pays to others to perform services to move your claim forward. Such expenses include, for example, the money he pays to the process server to serve the claim, Court filing fees, expert fees, and copying expenses.
New York law allows a New York personal injury attorney to charge a maximum of 1/3 the “net” recovery. For example, if you settle your case for $100,000 and there were $10,000 in expenses, your attorney should charge you 1/3 of $90,000, which amounts to $30,000. This leaves you with $60,000. This is the law in New York State.