If you turn on the TV, you are flooded with legal ads and personal injury lawyers promising you that they will not get paid unless you do. For those facing legal issues, this “contingency” basis may seem like the ideal solution they need. Yet, no matter how promising this arrangement may be, very few people actually understand what these fees mean or how they work on an individual case basis.
To help you better grasp the concept of contingency fee agreements, we have created the following blog to try to help explain what contingency agreements are, how they work, and whether they are right for you and your case.
A contingency fee is a type of payment that a personal injury lawyer receives if you obtain some compensation for the harm you endured. Instead of charging an hourly rate for their services, the attorney receives a percentage of any monetary recovery they help you recover. Consequently, their payment is “contingent” on you receiving some compensation.
Typically, you and your lawyer will agree to a recovery percentage.
The precise amount of compensation your attorney can receive may depend on:
Generally, in a more risky or complicated case, a personal injury attorney can charge a higher contingency fee percentage as long as it is not unreasonable or excessive. In comparison, the lawyer can lower the contingency fee if the case appears relatively straightforward or likely to end in recovery.
Contingency fees are especially beneficial in complex or costly cases, and when the client is short on funds. However, because a personal injury lawyer would not get paid until their client receives compensation—and even then, would only collect a percentage of that compensation—and—most personal injury attorneys do not accept cases unless they find a means to collect a settlement or judgment, such as an insurance policy or a clear and present liability.
Lawyers often work for contingency fees in civil cases such as workers’ compensation claims or personal injury cases.
But some lawyers may use them in:
Contingency fees are not allowed in criminal or divorce cases where the fee is contingent upon securing a divorce, alimony support, or a property settlement.
In most situations, even if a lawyer will work for a contingency fee, the client may still need to pay for individual administrative costs—unless the contingency fee contract states explicitly the client is exempt from these fees.
These litigation costs can include:
Before agreeing to any contingency fee arrangement, it is vital to review your contract and clarify with the attorney what expenses you will must pay, even if you lose your case.
The numerous advantages to contingency fee agreements include:
Contingency fee agreement contracts need to be in writing, signed by the client, and any lawyer paid under the contract. These agreements must also state the percentage of the recovery the attorney can keep, the expenses the attorney will deduct from the award, and how the attorney will deduct these expenses.
Check the state’s laws, because many times, they cap the contingency fees a lawyer may charge.
Lawyer fees can be complicated and hard to understand. However, they should not stop you from bringing a claim for the harm you endured. If you are looking for a more detailed explanation regarding contingency fees, you need to discuss your case with a trusted and experienced attorney who can take the time to explain everything you need to know about the legal process and how these contingency fee agreements work.
That is why if a personal injury accident injured you or a loved one, do not wait. Contact a skilled personal injury lawyer today, and let these lawyers provide you the answers you want, the clarification you need, and fight for the justice that you deserve.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
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