A contingency fee is what some attorneys charge for representing clients. It’s a portion of the client’s settlement award. When an attorney charges a contingency fee, the client doesn’t need to pay anything out of pocket, even if they lose the case.
Before deciding to hire a personal injury attorney, many people are legitimately concerned about how much it will actually cost them financially, which could ultimately discourage them from seeking legal guidance and representation. Attorneys may choose to charge a flat fee, bill by the hour, or require the payment of a retainer. The fee structure can greatly influence affordability.
In the personal injury field, the majority of attorneys work on a contingent basis, meaning they charge a contingency fee based on the outcome of a claim. This fee structure is designed to compensate an attorney for services rendered and is paid only when a case is successfully resolved in the client’s favor. Contingency fees can be a win-win for both clients and personal injury attorneys.
How Contingency Fees Work
Contingency fees tend to make seeking legal representation more accessible, allowing personal injury victims to pursue justice and financial compensation without having to pay a high lawyer fee upfront.
Here is an overview of how contingency fees work:
- The client meets with the attorney in a no-cost consultation to talk about the case and determine whether the case is strong enough for the law firm to take on.
- If the attorney decides to take on the case, they will provide a written contingency fee agreement. The agreement must adhere to the American Bar Association’s Model Rules of Professional Conduct as well as comply with state bar rules. These rules, among other things, include the maximum percentage that can be charged for such an arrangement.
- The attorney will then represent the client and advocate for their legal rights, seeking as much compensation as possible for their client. The process typically includes gathering evidence about the claim, filing paperwork, negotiating with insurance companies, and going to trial when necessary.
- Upon successful resolution of the case, the agreed-upon percentage of funds is distributed to the attorney, with the client receiving the remainder.
- If the case is unsuccessful and the client gains no compensation, the attorney does not charge any fees for having represented the client. The client may still owe other fees depending on what the attorney has agreed to cover.
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Types of Cases That May Involve a Contingency Fee
With some exceptions, according to the Model Rules of Professional Conduct, almost any case can involve a contingency fee. However, contingency fees are more common in personal injury cases, including the following types of claims:
- Car, truck, and motorcycle accidents
- Uber & Lyft accidents
- Bicycle accidents
- Pedestrian accidents
- Bus accidents
- Slip and fall accidents (premises liability)
- Animal attacks
- Workplace injuries, including construction accidents
- Medical malpractice
- Wrongful death
This list does not necessarily include every type of personal injury claim. Additionally, attorneys determine their own fee schedules, which means some personal injury attorneys don’t charge on a contingency basis. To discuss your case, call Accident Hotline at 888-340-7454.
5 Factors That Influence the Percentage of a Contingency Fee
Contingency fees can vary dramatically between law firms, typically ranging from 20% to 50% of the total personal injury award.
The following 5 factors may influence the attorney price structure:
- Case complexity: A simple, straightforward case may command a much lower contingency fee, while a case that is complex and requires more legal resources may command a higher lawyer price tag.
- Estimated length of time to resolve the case: Generally speaking, the more time a law firm invests in resolving a case, the higher the contingency fee may be.
- The probability of success: Cases with a lower probability of success may have a higher contingency fee to compensate the firm for the higher risk associated with litigation.
- The potential award: Sometimes, contingency fees are set on a sliding scale, with a certain percentage assigned for varying settlement amounts. For example, an attorney might assign a contingency fee of 50% for the first $10,000 recovered and decreasing percentages for everything over that amount.
- Geographic location: If there are fewer lawyers in a region or market, the contingency fee may be higher.
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Costs That May Not Be Included in a Contingency Fee
Depending on the law firm, any associated expenses that come with legal representation may be built into the contingency fee or charged separately as a lawsuit cost. Before hiring a personal injury attorney, it is important to understand how and if the attorney cost structure works and if some or all of these expenses will be charged against a settlement or judgment award.
The costs that may be additional to a contingency fee include:
- Filing fees
- Service of process fees
- Costs to order copies of records, police reports, and transcripts
- Fees for depositions and transcripts
- Travel expenses
- Costs of hiring expert witnesses
- Investigation fees
- Trial exhibits
- Administrative fees
Clients have the right to inquire about the maximum amount they may need to pay before agreeing to work with an attorney.
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Seeking Compensation in a Personal Injury Case
The role of a personal injury is to secure compensation for parties injured as a result of another party’s negligent or reckless conduct. Depending on the facts of a case, the following types of compensation may be available:
- Lost wages
- Future lost earning potential
- Medical bills (including surgery and prescription medication)
- Ongoing medical treatments
- Property damage
- Pain and suffering
- Emotional distress
- Loss of consortium
- Disfigurement and scarring
- Loss of reputation
- Punitive damages
- Wrongful death benefits
A personal injury attorney will review the facts of a case, gather the relevant evidence, and argue for compensation as appropriate for the circumstances.
About Accident Hotline
Accident Hotline is a trusted destination for accident victims seeking legal assistance across multiple practice areas, including car and truck accidents, premises liability, and more. Working with Accident Hotline provides peace of mind because attorneys are available to answer questions and provide support 24/7, even on holidays.
To schedule a consultation with an experienced personal injury attorney, call 888-340-7454.
For a free consultation, call 888-340-7454