Pursuant to major legislative reforms addressing an alleged crisis in rising medical malpractice premiums and health care costs, Judiciary Law section 474-a was amended effective July 1,1985 substantially reducing contingency fees allowable in medical malpractice cases. NY CLS Jud §474-a. The statute, previously allowing a 1/3 contingency fee retainer on the net sum recovered after deduction for chargeable disbursements was reduced to not exceed the following schedule:
“30 percent of the first $250,000 of the sum recovered; 25 percent of the next $250,000 of the sum recovered; 20 percent of the next $500,000 of the sum recovered; 15 percent of the next $250,000 of the sum recovered; 10 percent of any amount over $1,250,000 of the sum recovered.” (also to be calculated on the net sum recovered after deduction for chargeable disbursements).
