Q: Is it legal for attorney to base fee on original judgment after a reduction in NY?

A: The legal fee is based upon the $500,000.00.

Jack

A: It's not so much illegal as it is unethical. As my colleague correctly advised (and as is likely set forth in your retainer agreement), the attorney's fee is calculated based upon the actual recovery obtained by the client, not the judgment which is later reduced by an appellate court upon review. Otherwise, there could theoretically be a scenario in which the attorney's fee eats up the entire recovery.

A: It would depend on the terms of your retainer. But the normal practice in the industry is to base the fee on the ACTUAL FINAL amount recovered. Awards can routinely be reduced by a court, or through an appellate decision. It's ultimately that REDUCED amount on which attorney fees are typically based. Good luck

A: That situation would leave anyone confused and rightfully concerned. In New York, attorney fees in personal injury cases are typically based on a contingency agreement, where the attorney receives a percentage of the amount recovered. If the final amount awarded is reduced on appeal, your attorney is generally expected to base their fee on the actual amount recovered—not the original judgment.

If your attorney is calculating their fee based on the $900,000 rather than the final $500,000, that could be seen as unreasonable or even improper. What matters most is what your signed fee agreement says. If the agreement allows for fees based on a higher amount regardless of appeal, it may be technically legal—but still questionable in terms of fairness or ethics.

You have the right to request a detailed explanation of how your fee was calculated. If something feels off, you can file a complaint with the New York Attorney Grievance Committee or seek a fee dispute resolution through the local bar association. You’re not wrong to question this—your recovery should be respected, and you deserve full transparency.