Example Of Contingency Fees For Medical/Legal Malpractice Or Wrongful Death
Let’s take a look at fees for medical and legal malpractice cases or wrongful death. For complex cases such as a medical or legal malpractice or wrongful death, there are no fees if there is no recovery, the fee up until the lawsuit is filed is 33 1/3 percent of the total gross recovery. This is 40 percent of the gross recovery after the lawsuit is filed.
- No fee if there is no recovery (subject to other sections of the agreement);
- 33 1/3 percent of the gross recovery (before deduction of expenses, subrogation, letters of protection, etc.) up until the lawsuit is filed;
- 40 percent of the gross recovery (before deduction of expenses, subrogation, letters of protection, etc.) after the filing of the lawsuit.
If there is a separate attorney’s fees award by the court, then the fee is the greater of the attorney’s fees or the contingency fee (not both). An appeal requires a new fee agreement to be executed by the client.
Let’s look at a hypothetical client to illustrate how a contingency fee is calculated. If Malpractice Mary resolves her medical malpractice case at mediation for $750,000.00, the litigation expenses are $50,000.00, and she owes subrogation to her health insurance company in the amount of $150,000, then this is how Malpractice Mary’s attorney’s fees and expenses would be calculated:
Gross Settlement: $750,000.00
Attorney’s Fees: -$300,000.00 (40 percent of $750,000.00)
Gross Receipt Tax: -$21,937.50
Subrogation: -$90,000.00 (Reduced from $150,000)
NET to CLIENT: $303,062.50
Although it is not a perfect system, contingency fees allow an everyday person or their family to prosecute a personal injury case without having to pay the attorney up front. Without contingency fees, only corporations would have sufficient money to have access to the court room and everyday people would never be able to recover as the result of another person’s or corporation’s negligence.
It helps to have a strong team behind you during such a critical time for you and your family. Finding an attorney who will zealously fight for a just outcome can make all the difference not only in helping you get compensated for your injury but also providing ease of mind during a very difficult time.
If you have a medical malpractice, legal malpractice or wrongful death claim we can assist. The Davis Kelin Law Firm is Albuquerque’s Premier Personal Injury Law Firm. We handle very complex cases and are not shy about delivering results. If you want to win your case with strong representation you have come to the right place.