Schedule A vs Schedule B: Reading the Fee Clause in Your Retainer
Your New York injury retainer cites Schedule A or Schedule B. What those terms mean, where they come from, and what you are actually agreeing to.
By Nico Steele · Published
Somewhere in the contract your injury lawyer hands you, there is a paragraph about fees. It may mention Schedule A, Schedule B, or a rule number in the 600s, 691s, 806s or 1015s. Those are not boilerplate. They are the two fee structures New York permits, and the paragraph is telling you which one you are signing up for.
Where these terms come from
New York's appellate courts cap what a lawyer may charge in an injury or wrongful death case. Each of the state's four judicial departments publishes the same pair of schedules, which is why the rule number changes by borough but the math does not.
| Where your case is | The rule your retainer may cite |
|---|---|
| Manhattan, Bronx | 22 NYCRR 603.25 |
| Brooklyn, Queens, Staten Island | 22 NYCRR 691.20 |
| Upstate and Hudson Valley | 22 NYCRR 806.27 |
| Western New York and the Finger Lakes | 22 NYCRR 1015.15 |
What each schedule actually says
| Schedule A | Schedule B | |
|---|---|---|
| Plain-language name | The sliding scale | The flat rate |
| The numbers | 50% of the first $1,000, 40% of the next $2,000, 35% of the next $22,000, 25% of anything above $25,000 | A single percentage, not exceeding 33⅓%, on the whole recovery |
| How it applies | Automatically, unless the retainer says otherwise | Only if your written agreement elects it |
| Lawyer may later ask a judge for more | Yes, on a showing of extraordinary circumstances | No |
Two details worth sitting with. First, Schedule A is the default and Schedule B is the opt-in, which is the reverse of what most people assume when they see a one-third retainer. Second, the flat rate says "not exceeding," so 33⅓% is a ceiling rather than a fixed price.
A quick sense of the difference
The scale front-loads and then drops to 25%; the flat rate never moves. They produce the same fee at $33,000.
| Recovery | Schedule A | Schedule B at 33⅓% |
|---|---|---|
| $25,000 | $9,000 | $8,333 |
| $100,000 | $27,750 | $33,333 |
| $500,000 | $127,750 | $166,667 |
The second election in the same clause
Separate from which schedule applies, the rules require your agreement to state how expenses are treated. There are two lawful methods and they produce different checks.
- Under the fee after expenses method, case costs come off the recovery first and the percentage is calculated on what remains.
- Under the fee on the gross method, the percentage is calculated on the full recovery and costs come out afterward. This version is generally paired with the firm absorbing the costs if the case is lost.
One thing the rules specifically do not allow: deducting hospital and medical liens before calculating the fee. Those come out of your side, after the fee is set.
What is not covered by either schedule
- Medical malpractice has its own statutory scale: 30% of the first $250,000, then 25%, 20%, 15%, and 10% above $1,250,000, calculated after expert and investigation expenses.
- No-Fault benefits after a car crash are not part of this at all. There, the insurer pays your lawyer under a separate cap, so your medical benefits are not a pot your lawyer takes a share of.
- Workers' compensation fees are approved by the state board out of your award, and a private fee arrangement is not just unenforceable but a crime.
What your retainer has to tell you
New York requires a written engagement letter or signed retainer in essentially any matter where the fee will exceed $3,000, and it must cover:
- The scope of what the lawyer will do
- The fee, including which schedule and which expense method
- How expenses and billing are handled
Two more documents exist in every contingency injury case, and both are yours by right:
- A retainer statement, filed with the court system's administrative office shortly after you hire the firm.
- A closing statement at the end, itemizing the recovery, the fee, the costs and every medical payback, filed with that same office and sent to you.
Five questions that make the clause readable
- Is this Schedule A or Schedule B?
- If it is Schedule B, what percentage, and is it fixed for the life of the case?
- Does the percentage come off the recovery before or after case costs?
- If the case does not succeed, am I billed for the costs already spent?
- Will you send me the closing statement when the case ends?
One thing that should stop you
A fee above one-third in an ordinary injury case is not standard in New York. The rules treat a fee beyond the schedules as unreasonable unless a judge approves it for extraordinary circumstances. If you are shown a retainer that escalates to 40% at trial, ask which rule authorizes it and where the court approval comes from. A straight answer is easy for a firm that has one.
You can compare the illustrative effect of either fee clause with the recovery calculator before discussing the retainer with a lawyer.
This article is general information about New York law, not legal advice for your situation.
Sources: 22 NYCRR 603.25 · 22 NYCRR 691.20 · 22 NYCRR 806.27 · 22 NYCRR 1015.15 · 22 NYCRR Part 1215 · Judiciary Law 474-a · 11 NYCRR 65-4.6 · Workers' Compensation Law 24