Private attorneys charge legal fees for their work. However, these traditional hourly fees can strain an accident victim’s finances.
After suffering a serious injury, their resources will typically go toward their medical treatment and living expenses until they heal enough to return to work. And in certain cases, their injuries could cause permanent disabilities that prevent them from ever working again.
Contingency fees, therefore, provide an attractive option for personal injury clients. Since they are only paid at the end of cases, they allow accident victims to hire high-quality lawyers to fight against billion-dollar insurers and their powerful insurance defense attorneys without worry.
Characteristics of a Contingency Fee
A contingency fee is calculated as a percentage of the compensation recovered by a lawyer for a client. The fee rewards lawyers for the results they produce.
For example, a lawyer might quote a 33% contingency fee, meaning their client will pay them 33% of the settlement or awarded damages in the case. If the lawyer doesn’t recover compensation for the client, the client owes them nothing in attorney’s fees.
Contingency fees can also include multiple tiers of fees. For example, a lawyer might charge a 33% contingency fee for cases that settle before filing a lawsuit and 38% if you must litigate. In such circumstances, these tiers represent the risks and costs incurred by the lawyer as the case goes on.
You can contrast contingency fees with two other common legal fee structures: flat fees and hourly fees. A flat fee is a fixed amount quoted for a defined legal project. For instance, a lawyer might charge a flat fee to write a will or form a corporation. It compensates a lawyer for the completion of a project.
An hourly fee is an amount charged for each hour spent working on a case, regardless of its outcome. Some attorneys charge hourly for legal projects that require an indeterminate amount of work, such as lawsuits or contract negotiations. Injury lawyers, however, rarely work under hourly (or flat) fees.
Benefits of Contingency Fees for Clients
A contingency fee provides many benefits to injured clients. Since the lawyer calculates it at the end of the case, the client does not need to pay any upfront fees. Instead, the lawyer will start working on the case after the client signs a contingency fee agreement.
Another benefit of contingency fees comes at the end of the representation. When a lawyer receives their client’s injury compensation, they deduct their legal fees and costs and send the rest to the client. In turn, a client never needs to worry about paying their lawyer directly or out-of-pocket.
Before offering to represent you, the lawyer will review your case carefully. Contingency fees require lawyers to risk their time and money on your case. They typically accept cases only when they feel confident they will win or settle the claim.
You will also learn the possible value of your claim. A lawyer will estimate your economic and non-economic losses to determine the compensation you may receive and the fee they may ask for in turn.
Services Typically Covered by Contingency Fees
Contingency fees cover most of the legal services you will require through the resolution of your case. Specifically, the following services usually fall within the scope of your legal representation:
- Communicating with you via phone and email
- Advising you of your rights and options
- Gathering medical records and evidence for your case
- Filing an insurance claim with the at-fault party’s insurer
- Negotiating with the insurer to settle your claim
- Filing a lawsuit if the negotiations fail
- Requesting and producing evidence during the discovery phase
- Filing motions in court to determine what gets presented at trial
- Presenting your evidence to a judge or jury and arguing for compensation
Your contingency fee might not cover every aspect of your representation, though. For instance, most do not cover appeals if the trial court commits an error that adversely affects you.
Also, your contingency fee might not cover litigation costs. However, most lawyers pay these costs themselves (at least upfront) so your case can continue uninterrupted.
When choosing a lawyer, discuss each of these fees and costs. Clients can often avoid fee disputes by having an early conversation with their lawyer about what they must pay.
Schedule a Free Case Review With an Experienced Lawrenceville Personal Injury Lawyer
Contingency fees can benefit both the lawyer and the client. The lawyer will be incentivized to put as much money into the client’s pocket as possible – after all, that means they receive more money as well. Further, an injured victim can hire a top-rated attorney even with mounting financial expenses.
Contact a Lawrenceville personal injury attorney today for a free consultation if you’ve been injured in an accident.