November 28th, 2006

How much are the legal fees in a personal injury case?

In part one of this FAQ, I discussed 1) the need to find a lawyer in your area, and; 2) concerns one should have if they are solicited by an attorney. Now we turn to legal fees:

3. How much are the legal fees in a negligence case?

Most New York personal injury law firms operate the same way:

First, there is no legal fee for an initial consultation. If the case is taken it is usually done on a contingency basis, which means that the lawyer gets paid only if the client gets paid. This is an incentive for the lawyer to only take good cases with serious injuries, and it relieves a burden from clients who would not otherwise be able to afford a good attorney.

Legal fees are governed by the Judiciary Law, which establishes a limit of 1/3 of any recovery as the fee, with the exception of medical and dental malpractice cases where the fee is lower (see below).

Over the course of the representation, there will be expenses that most attorneys will generally advance on behalf of the client, such as for medical records, experts, stenographers, and certain court filings. There may be exceptions to this, and a good attorney will candidly discuss them with you. (For example, if a settlement offer is made that the attorney recommends accepting, and the client refuses, the client might be asked to front any additional expenses.)

At the time of recovery, the firm will first reimburse themselves for the cash outlay for expenses and then do an apportionment of the remaining recovery. For example, if a case settles for $100 and there was $10 in expenses paid by the attorneys on behalf of the client, then the $10 would be paid back to the attorney and the remaining $90 would be used to determine the legal fee.

4. What are the fees in New York medical malpractice and hospital malpractice cases?

Medical, dental and hospital malpractice cases are also governed by the Judiciary Law, which sets forth a legal fee “sliding scale” structure that looks like this:

30% of the first $250,000 of the sum recovered;
25% of the next $250,000 of the sum recovered;
20% of the next $500,000 of the sum recovered;
15% of the next $250,000 of the sum recovered;
10% of any amount over 1,250,000 of the sum recovered.

Thus, while malpractice cases are significantly more difficult to bring, and cost a great deal more (due to the necessity of hiring additional experts), the fees are lower than in other New York personal injury matters. In fact, they are some of the lowest in the nation. Because of this, many New York firms have a much higher threshold barrier in taking malpractice cases. Essentially, the lower fees, greater expense and significant technical difficulty of bringing such suits has given virtual immunity to the medical profession for smaller claims. Samples of some of the New York medical malpractice cases my firm has handled can be viewed at this link, and they demonstrate the complexity of many matters.

In future FAQs, I hope to cover the need for speed in certain things, the issues around how to “value” a potential case, and other subjects.

November 20th, 2006

FAQ – New York Personal Inury Law – Part 1

Since many of the same questions recur in personal injury law, it makes sense to write about them. Here then is the first installment of Frequently Asked Questions:

1. There are so many attorneys and legal websites, how do I select a law firm?

Make sure the firm has a real office in your area. A “national” firm advertising on the Internet may merely be a toll free number from anywhere, without even having an attorney admitted to practice law in New York. Such a firm is likely to sign clients up, and then shop the case around to others in New York in exchange for a legal fee. This lowers the fee to the local attorney (who you have not met) that will do the actual work. Because the “national” firm is taking some of the legal fee, it will also make it less likely to be accepted by high caliber local attorney. The same is true of the dozens of attorney search “services” that are little more than an advertising web site.

Make sure the firm has handled personal injury cases such as yours and has some examples for you to see. Would you want a firm that devotes 95% of their time to matrimonial matters handling a medical malpractice birth injury lawsuit for your child?

Visit the office and talk to the attorney that will handle your case. If you feel you are being rushed and not given enough time to discuss the matter, hire another firm.

Will your case get individual attention, or be one of thousands of New York personal injury cases that the firm handles, assembly-line style? Some people like small firms with individual attention, and others like larger firms. It is a matter of personal preference.

If possible, get a reference from someone you know and trust.

2. Someone approached me at the hospital and recommended a lawyer. Is it OK to use that firm?

Any law firm that solicits you, your family or friends at a hospital should be immediately reported to the District Attorney or the local disciplinary committee. This “ambulance chasing” is illegal, unethical and embarrassing to the profession. Further, if such conduct takes place at the start of representation, it will be impossible to trust the attorneys later on to do the right thing for you when you seek advice on how to proceed. I don’t care how good they claim to be, if they are unethical than you should look elsewhere, or if you have already hired them, change attorneys.

In the next FAQ post, I’ll cover legal fees for general liability cases as well as the more complex medical malpractice suits.

November 18th, 2006

Hospitals are not healthy

A recent op-ed in the New York Times reminds us again that a hospital is not just a good place to get better, but also a great place to get sick. That’s not being cute, but simply reminding us that about 100,000 people die each year from infections they acquire in the hospital. The author of the column, former lieutenant governor of New York Betsy McCaughey, points out that this is five times as many as die of AIDS in this country.

The killer bacteria are known as MRSA., or methicillin-resistant Staphylococcus aureus. MRSA, which by definition is resistant to antibiotics, increased in the United States by 32 times from 1976 to 2003, according to the Centers for Disease Control. While staph infections comprised only 2% percent of hospital infections in 1976, it is now 60 %.

Infections are carried from patient to patient due to sloppy institutional practices, as germs travel on gowns, gloves, bedrails, stethoscopes, wheelchairs and even blood pressure cuffs. Prevention comes in the form of testing people for the bacteria that causes the problem, and isolating those individuals. The cost of illness and death vastly outpaces the cost of testing.

The sad truth is that so many of these infections and deaths are preventable. Other developed nations, faced with rapid growth of the problem, have nearly eradicated it with testing.

Ms. McCaughey, who is also the founder of the Committee to Reduce Infection Deaths, writes:

Treating hospital infections costs an estimated $30.5 billion a year in the United States. Prevention, on the other hand, is inexpensive and requires no capital outlays. A pilot program at the University of Pittsburgh found that screening tests, gowns and other precautions cost only $35,000 a year, and saved more than $800,000 a year in infection costs. A review of similar cost analyses, published in The Lancet in September, concluded that M.R.S.A. screening increases hospital profits — as it saves lives.

The failure to take proper preventative measures is institutional malpractice, and has caused extraordinary suffering and loss. Must hospitals wait to be hit by juries with large liability awards before they change their conduct?