SB463: relative to limits on attorney contingency fees in civil actions for medical injury.

SB 463 - AS INTRODUCED

2004 SESSION

04-3176

06/09

SENATE BILL 463

AN ACT relative to limits on attorney contingency fees in civil actions for medical injury.

SPONSORS: Sen. Gallus, Dist 1

COMMITTEE: Judiciary

ANALYSIS

This bill limits the amount of contingency fee that an attorney may collect in a medical injury case.

This bill also changes the definition of medical care provider for the purposes of medical injury actions.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04-3176

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to limits on attorney contingency fees in civil actions for medical injury.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Definitions; Medical Care Provider. RSA 507-E:1, II is repealed and reenacted to read as follows:

II. "Medical care provider" means a physician or other health care practitioner licensed, accredited, or certified to perform specified health services consistent with state law; a health care facility or agency licensed by the state or otherwise lawfully providing medical care or services, or an officer, employee or agent thereof acting in the course and scope of employment.

2 New Paragraph; Definitions; Recovered Added. Amend RSA 507-E:1 by inserting after paragraph III the following new paragraph:

IV. "Recovered" means the net sum recovered after deducting any disbursements or costs incurred in connection with prosecution or settlement of the claim. Costs of medical care incurred by the plaintiff and the attorney's office-overhead costs or charges are not deductible disbursements or costs for such purpose.

3 New Section; Limitation on Attorney Contingency Fees. Amend RSA 507-E by inserting after section 507-E:3 the following new section:

507-E:4 Limits on Contingency Fees.

I. An attorney shall not contract for nor collect a contingency fee for representing any person seeking damages in connection with an action for medical injury or damage against a health care provider based upon the health care provider's alleged negligence, error, or omission in excess of the following limits:

(a) Forty percent of the first $50,000 recovered.

(b) Thirty-three and one-third percent of the next $50,000 recovered.

(c) Twenty-five percent of the next $500,000 recovered.

(d) Fifteen percent of any amount on which the recovery exceeds $600,000.

II. The limitations in paragraph I shall apply regardless of whether the recovery is by settlement, arbitration, or judgment, or whether the person for whom the recovery is made is a responsible adult, a minor, or a person of unsound mind.

III. If periodic payments are awarded to the plaintiff, the court shall place a total value on these payments based upon the projected life expectancy of the plaintiff and include this amount in computing the total award from which attorney's fees are calculated under this section.

4 Effective Date. This act shall take effect January 1, 2005.