Anthony Lin in the NYLJ reports that a law firm which was successful in a $1.2 million dollar assault case may only take its 1/3 contingency fee.  It had charged another $ 450,000 for appellate and collateral work without an additional retainer, and without even a letter to the client.

"Lawyers whose original retainer agreement stated only that they would receive a one-third contingent fee must disgorge additional fees collected for an appeal and collateral litigation, a Manhattan judge has ruled.

Omar Siagha was assaulted in 1993 by a bartender at an Upper East Side restaurant called Ruby’s River Road Cafe. To pursue a claim against the restaurant, Mr. Siagha contacted lawyer Michael J. Rosenblatt, then an associate at the firm of Schwartz, Gutstein & Associates.

Mr. Rosenblatt soon thereafter left the firm to start his own practice and then to co-found Katz & Rosenblatt with attorney David Katz. The suit against the restaurant was filed by Katz & Rosenblatt, which later became Katz & Associates after Mr. Rosenblatt’s resignation. A jury returned a verdict of $1.2 million, which was affirmed on appeal. "

Following further litigation with the insurance companies, Mr. Siagha received a judgment of $1.7 million, from which Katz & Associates took a fee of around $870,000, including one-third of the award and legal costs relating to the appeal and collateral litigation.