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We did not find any state that sets a numerical or percentage limit on the fees that health care providers or their insurers may pay for legal representation. But we did find several states that allow or require the court to determine the reasonableness of the attorney’ fees doctors, or their insurers, and plaintiffs pay.
Most, like Connecticut’s, establish a sliding scale that places an upper limit based on the amount of the settlement or judgment. Connecticut allows 33 and 1/3% of the first $ 300,000, 25% of the next $ 300,000, 20% of the next $ 300,000, 15% of the next $ 300,000 and 10% of amounts exceeding $ 1,250,000. (This sliding scale applies to any lawsuit to recover damages resulting from personal injury, wrongful death, or property damage involving contingency fees, not just to medical malpractice cases. ) A few states such as Tennessee and Utah set the limit at one third regardless of the recovery. One state, Florida, establishes different limits depending on the stage the case gets to. For example, it allows a higher limit if the case goes to trial and even more if the case is appealed.
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