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SECOND DEPARTMENT CHANGES THE RULES

Dear Lucas​,

The Appellate Division Second Department recently published new rules amending 22 NYCRR § 691.20(e) relating to contingent fees in personal injury and wrongful death cases. Under the new rules, an attorney that pays the costs and expenses of an action will be able to calculate their contingency fee based upon the gross sum recovered. Until now, despite a comparable change to the Judiciary Law in 2006, the NYCRR has required that fees be calculated based on the net recovery after deducting expenses and disbursements. It is expected that the First, Third and Fourth Departments will publish similar rules in the next few weeks.

This change to the rules governing contingency fees is thanks in large part to the efforts of NYSTLA members. As reported in the New York Law Journal on March 26th last year, "Martin Edelman of Edelman & Edelman … and Jeffrey Lichtman of Trolman, Glaser & Lichtman coordinated a group of personal injury practitioners who have been discussing the need for changes in the state court rules since 2006, when the state Legislature amended §2 of the state Judiciary Law §488."

Special thanks toPast President Lenore Kramer of Kramer & Dunleavy whose leadership and guidance has proved invaluable. We would also like to thank the following for their time and commitment:

  • Robert F. Danzi, President
  • Joseph P. Awad, Past President
  • Richard S. Binko, Past President
  • Benedict P. Morelli, Past President
  • Nicholas I. Timko, Past President
  • William A. Gallina
  • Andrew G. Finkelstein

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