Contingency Fees in Personal Injury Cases: Payment for Legal Services

Legal representation in the United States can be expensive. Contingent fees allow anyone injured in an accident to hire an attorney, no matter their financial situation. You don’t have to pay anything upfront; your lawyer only gets paid if you win your case.

Most personal injury attorneys offer contingent fee arrangements. It is essential to understand these legal fee agreements when you hire a lawyer. To find out more about hiring a personal injury attorney under a contingency fee, talk to a personal injury attorney.

What Is a Contingency Fee?

A contingency fee is an agreement to take a percentage of the award as payment for legal services. Contingency fees generally require no upfront payment. Your attorney advances the legal fees and costs for the lawsuit. You only have to pay your attorney after they win. The payment is based on a percentage of your damages award.

A contingency fee basis allows anyone to pursue a personal injury claim even if they can’t afford to pay a lawyer. If an attorney thinks you have a legal claim, they can advance the costs of litigation to make sure you recover compensation from the at-fault party. Without these fee arrangements, people with limited income may have no access to the justice system.

How Much Do You Have to Pay in a Contingency Fee?

Most states limit contingency fees to a reasonable amount. Some states set a percentage limit. Generally, contingent fees are capped at around 33% to 45%. Some states have a sliding scale. For example, California provides for 40% of the first $50,000, 33 1/3rd% of the next $50,000, 25% of the next $500,000, and 15% for any remaining award.

Do I Have to Pay If I Lose My Case?

In most cases, you won’t have to pay anything if you lose your case. This also incentivizes your lawyer to work hard to win your case. Even if the attorney has invested a lot of time and money into your case, you still don’t owe anything if it doesn’t succeed. For injury victims who aren’t sure if they want to pursue a legal claim, there is little to no risk in trying it.

What Are the Benefits of a Contingency Fee Arrangement?

The benefit of a contingent fee arrangement is that you don’t have to have a lot of money to fight for your rights. The insurance companies and corporations may have plenty of money to fight back. A contingency fee arrangement means you can have a lawyer fight for you even if you can’t afford attorney fees.

A contingency agreement also encourages the lawyer to work hard for your rights. The attorney only gets paid if you win your case. Your attorney can work to negotiate the maximum settlement offer or jury award possible.

Do I Have to Pay My Lawyer Upfront?

With a contingency agreement, you usually don’t have to pay any money upfront. There are other fee arrangements for legal services in other cases. For example, in a contract dispute, criminal defense, or immigration case, the attorney may charge an hourly rate or a flat fee. The attorney may want a retainer upfront to cover their costs. This usually doesn’t apply in a personal injury case.

What Happens When I Win My Case?

When you win your case, your personal injury lawyer will take a contingency fee percentage of the award. This includes a jury award, judgment, or settlement. However, before your attorney takes the percentage, they will generally deduct their legal costs.

The contingency fee generally does not include all the court fees, legal services, and other upfront litigation costs. Legal costs in a personal injury case may include:

• Court filing fees
• Copying medical records
• Expert witness fees
• Court costs
• Sheriff’s and service fees

After deducting those fees, your lawyer will take the pre-approved percentage as their lawyer’s fee for resolving your case. The remaining money will go to you unless other government or insurance liens exist. If your insurance company paid your medical bills, they may want you to reimburse them.

Before hiring an attorney, ensure you understand the contingent fee agreement and any other fees involved. If you are not sure, ask questions. If you don’t feel like you are getting a clear answer, you can talk to another attorney. For more information about contingency fees, contact a personal injury law firm for an initial consultation.