One of the most common reasons people do not seek representation after an injury is the cost of hiring a lawyer. Expensive attorney fees, on top of medical bills and lost wages, can be impossible for many.
A contingency fee agreement allows injured victims to pursue legal action without risk. In a legal agreement on a contingency basis, the victim only pays if the case is successful. Learn everything you need to know about contingency fees, including how to choose the right lawyer.
Understanding a Contingency Fee Arrangement
A contingency fee agreement means the victim pays no attorney’s fees unless the case is won. This arrangement does not include payment for filing fees or other legal-related expenses.
In most cases, the attorney advances these additional litigation costs, which are then reimbursed from the settlement. The risk of not receiving payment motivates the attorney to achieve a successful outcome.
What is a Contingency Fee Agreement?
In a contingency fee agreement, the client only pays if the case outcome is successful. If the lawyer wins the claim, the client pays a percentage of the settlement awarded to the firm. If the case isn’t successful and no money is recovered, the client owes nothing.
This fee structure means the lawyer takes the risk and works to get paid, unlike hourly fees, where clients pay for legal services regardless of outcome.
A personal injury case aims to recover damages suffered due to the defendant’s negligence, which may include lost wages, medical expenses, and pain and suffering. A contingency fee lawyer works to maximize the amount recovered, only collecting a percentage of the amount if they succeed.
How Contingency Fees Work
Contingency fees are a type of payment arrangement between a lawyer and a client. Here are a few additional things to know about contingency fees.
No Upfront Fees
With a contingency fee setup, there are no out-of-pocket or upfront costs. This arrangement means clients only pay if the case is successful and they receive compensation for damages.
A contingency agreement also usually includes a free case evaluation, which allows clients to explore their legal options and choose the best attorney without upfront costs.
Percentage-Based Fee
If the personal injury case is successful, the client pays a percentage-based fee for the legal services based on the amount awarded.
An important role of your personal injury attorney is to negotiate a fair settlement with the other party’s insurance company. Better negotiation skills can lead to a higher payout, which means more money paid to the attorney and the client.
Typical Percentages
Contingency fee percentages may vary depending on the complexity of your case. However, a range between 33% to 40% is common in contingency fee agreements.
The percentage you pay also depends on whether your claim requires trial representation. Many injury cases are settled outside of court, but trial representation may be necessary if the defendant’s insurance company is unwilling to offer a fair settlement.
Expenses and Costs
Case-related expenses are usually deducted before calculating the contingency fee percentage. This process means the law firm first removes filing fees, private investigator bills, or other related costs. The remaining amount is then divided according to the agreed-upon percentage between you and your attorney.
Benefits of Contingency Fees
A contingency fee arrangement usually benefits the client by removing the risk of paying legal fees without recovering compensation. Here are a few other benefits of contingency agreements.
Access to Justice
Personal injury claims not only aim to provide the victim with compensation for healing but also to serve justice.
Contingency fee arrangements make it easier for anyone to seek justice. They allow those without access to the necessary finances or resources to secure a results-driven lawyer to pursue legal action.
Alignment of Interests
A contingency agreement also ensures lawyers work toward case resolution and compensation in their client’s best interests. Contingency fee lawyers don’t get paid unless they’re successful, so they’re willing to put in the extra work it often takes for a successful case.
Additionally, a contingency fee lawyer is more willing to fight for maximum compensation, which leads to a higher payout.
Law firms are also more selective with the cases they represent on a contingency fee basis. A free consultation is a great way for clients to share the details of their cases and choose the best lawyer for their needs.
No Financial Risk for Clients
The most significant benefit of contingency fee arrangements is that clients can seek legal representation without risk. Contingency lawyers never charge upfront.
Clients who have suffered a personal injury are often in a difficult financial situation. They may have ongoing medical costs and be unable to work. Many injuries can also impact a person’s psychological well-being, leading to a good degree of pain and suffering.
Law firms that charge a flat fee, regardless of the outcome of the case, add unnecessary financial pressure. A trial lawyer who works on a contingency fee makes it easier and more realistic for clients to pursue legal action. It also gives clients more control over the outcome of their case.
When Contingency Fees Are Used
Contingency fees are used in many legal situations, including the following.
Personal Injury Cases
Contingency fees are commonly used in personal injury cases, including car and truck accidents, slip-and-fall cases, and medical malpractice. These cases commonly require strong evidence of negligence, which an experienced lawyer best handles.
Other Legal Matters
A contingency fee arrangement can be used for workers’ compensation, work-related injuries, and product liability cases. These cases require sufficient evidence to prove fault, and a contingency arrangement makes legal counsel accessible to those who need it.
Choosing a Lawyer with a Contingency Fee Basis
Injured victims can benefit from working with a contingency fee lawyer. However, in addition to choosing a law firm based on fee structure, here are a few other important factors to consider.
Experience and Track Record
Consider the experience and track record of the lawyer you choose. Generalized legal experience isn’t as important as a proven track record in the specific area of law you need. Research the law firm’s track record with similar cases. Ask about their investigative methods and their experience working with expert witnesses.
Clear Communication
It’s important to choose a lawyer with open and clear communication about the attorney fee before proceeding with your case. Ask your attorney to explain all terms and make sure everything is documented in writing.
Not only do you want a lawyer who will update you on your case, but also one who has effective communication and negotiation skills to win you a favorable settlement with the insurance company.
Written Fee Agreement
Review the written fee agreement before you begin working with a specific law firm. This representation agreement outlines the legalities of the professional relationship, including how and when legal fees are paid.
Review the contract in detail, including the percentage of the standard contingency fee expected and any additional costs that may be required. Consider any additional attorney fees, flat fees, or other expenses you may be expected to pay.
Secure Expert Legal Counsel!
If you were harmed due to negligence, you may be entitled to compensation through a personal injury lawsuit. Rosenfeld Injury Lawyers operates on a contingency fee structure; our attorneys help victims pursue legal compensation without financial risk.
Our law firm is committed to helping injured victims recover maximum compensation. We have the legal expertise needed to negotiate your settlement and protect your rights effectively.
Call us today at (888) 424-5757 for a free initial consultation, or fill out our online form.
