Introduction
Money from a personal injury case can pose problems for the injured person in many situations. It seems so easy to state that money from a personal injury case can pay the person’s medical bills, but there are many other financial concerns that the injured person must deal with.
It is often the case that a person who has been injured by another’s actions or inactions cannot afford to pay for the time and services of a lawyer. The contingency fee model is the best option for many people in this situation. Since the contingency fee model does not require the client to pay the lawyer in advance of the lawyer’s services, there is concern that if the case loses, the client will be left with more financial problems.
This article will explore typical contingency fees charged by personal injury lawyers as well as typical case expenses and the consequences of a case losing.
Define Contingency Fees in Personal Injury Law
Many people today worry about incurring a large bill for their legal fees. Also, recovering from injuries can be a financial drain. Yet, having a good injury lawyer on your side can put a strain on your finances also. This payment structure is the most widely used by most lawyers and their clients. It is referred to as a contingency fee. A contingency fee is a method of payment for a patron and an attorney, where the attorney’s fee is to be paid upon winning the case of his or her patron. If a patron were to lose his or her case, then the patron would not be responsible for paying any of the fees for his or her lawyer. The average contingency fee for a personal injury attorney is a percentage of the total amount of money that he or she is able to recover for his or her client. The average contingency fee is between twenty percent to fifty percent and can even be higher in cases that are complex in nature.
The payment structure for legal representation in the majority of cases where an injury has occurred (i.e. a car accident, work related accident etc.) are set up so that individuals are able to afford legal representation when they have been left with finite financial resources due to their injury. Most personal injury cases are structured so that the client has to pay nothing for their lawyer’s time and effort if they do not receive any compensation for their injury.
At Bice Law, we have years of experience helping our clients in a variety of matters receive the compensation that they deserve. At Bice Law, we are able to offer a number of different payment options in order to allow our clients to afford our services. We even hold free initial consultations for potential clients in order to allow them to determine whether or not they would like to proceed with hiring us. In addition to representing a number of injured workers in Charlotte, we have also determined that the average contingency fee for a personal injury lawyer is a common practice used by many lawyers in order to allow their clients to focus on recovery from their injuries while allowing them to receive the compensation that they deserve as a result of another’s actions.
The contingency fee model solves a huge problem for parties to a dispute who are afraid to proceed with their case due to the perceived financial burden that it will take to pay for their law assistance and go to trial. By paying nothing for their law assistance until they receive compensation in their case for their injuries, they can focus on their recovery instead of worrying about the financial impact that their pursuit of justice will have on them.
Explain How Contingency Fees Work and Typical Percentages
The laws regarding payment of fees for services rendered by attorneys can be complex and if you have suffered a bodily injury, it can be particularly trying. Vasquez Law Firm charges a contingency fee for cases handled by our personal injury lawyers. Our normal contingency fee is between 33% and 40% of the total recovery (after costs and before subtraction for attorneys’ fees).
Cases that settle before filing a lawsuit typically fall in the lower end of the normal range for contingency fee for personal injury lawyers (i.e. 33%) and cases that have to go to trial to get a fair settlement from the opposing party are typically in the higher end of the normal range for contingency fees (i.e. 40%).
Either way, the contingency fee for your case will be a portion of your total recovery and you will not have to pay any attorneys’ fees for services that our injury attorneys provide for your case if you do not recover any compensation. You will have direct access to the attorneys who are handling your case at all times throughout the process of your case.
It is also a good idea to ask your personal injury attorney whether the normal contingency fee for your case will be computed based on your gross recovery (i.e. before subtraction for attorneys’ fees and costs) or on your net recovery (i.e. after subtraction for attorneys’ fees and costs) for your case.
Either way, you can get the percentage for contingency fee for personal injury lawyers for your case and the basis for calculation from your attorney prior to signing an agreement for representation of your case to get an idea of what your normal contingency fee for your case will be and to avoid any surprises at the end of your case.
For example, if your case settles for $90,000 prior to filing a lawsuit with the court, then the normal contingency fee for your case would be 33% x $90,000.00 = $30,000.00. On the other hand, if your case has to go to trial and you receive $200,000 at trial, then the normal contingency fee for your case would be 40% x $200,000.00 = $80,000.00.
We will work hard for you in order to get the best possible recovery for you in your case.
Outline Additional Costs Beyond Attorney Fees
As the prior article detailed the average contingency fee of personal injury lawyers, this article shall further elaborate on other personal injury case expenses clients are expected to incur throughout the legal process. It is commonly known that filing a lawsuit to recover personal injury damages typically commences with the filing of a complaint in a court of law which will typically cost anywhere from $300.00 to $500.00 to file, including service on the opposing parties and other corresponding filing documents. Before filing the lawsuit, prior medical records are also usually needed which typically cost anywhere from $100.00 to $500.00 plus corresponding shipping fees to receive the records in a timely fashion.
It’s also necessary to take into consideration costs of attending and reading out a deposition of a party to a case. Cost of a transcript can vary from $3 to $5 per page, depending on how many pages total. The cost of an accident reconstruction, as well as of high quality photos of the accident, will add to other expenses of a case and must be taken into account by a plaintiff.
Note that these extra costs to your claim, in addition to your average contingency fee for personal injury lawyer, are the costs for your case and the other expenses incurred by the case throughout its process. By knowing these extra costs first, you will have a realistic idea of the costs of your case as your personal injury lawyers at Parniort fight for you to receive the full compensation that you deserve. Most practice areas have these fees paid by the client on a variety of payment plans and can be paid out over time in order to help those with fewer financial means to afford legal representation and seek out justice for the injuries they have sustained. We have detailed the extra costs to your case here in order to help you with a more realistic budget for your personal injury case.
Discuss What Happens if You Lose Your Case
Most unexpected expenses from lost personal injury cases occur during trial. Typically, there are extra expenses for trial-related court costs as well as the report from your expert witness. Additional expenses that are not guaranteed for the opposing party in both North Carolina and Florida cases are paid by the plaintiff in a lost case. In many instances, the plaintiff also has to pay their own attorney for their time for the work that they performed for the plaintiff during the case.
Of the 95% or so of the cases that end up settling before trial, about 75% of those settle very early in the case when the parties are first exchanging correspondence with each other as well as their attorneys. It is helpful for our clients to be aware of the potential risks to proceed with a case as well as any potential alternate methods to reach a conclusion with a case as discussed with your attorney.
Our experienced attorneys know what can occur if a case proceeds to trial for personal injury cases and can guide you through the process. Our North Carolina and Florida attorneys work on a contingency fee basis for personal injury cases, which means there are no attorney’s fees for work done on the case until there is a recovery. We work with our clients and make payment of case expenses as affordable as possible and try to work within our clients' budget to complete their case.
Please contact any of our attorneys with any questions that you may have or regarding a potential case.
Conclusion
No one ever expects to be injured. Therefore, seeking help for an injury through the legal system can be one of the most difficult issues that an injured party faces next to recovery from injuries. Learning how contingency fees work can ease much stress and make the legal process of recovery from start to finish so smooth that you’ll hardly even know it’s happening. Not only that, but contingency fees are set up in a way that ensure people of very limited financial resources can seek help for injury when another’s actions or circumstances cause an injury to another.
The earlier portions of our website highlighted key elements of a contingency fee arrangement and typical percentages taken by attorneys for their fee and for other costs related to a matter and associated with the attorney’s fee for clients’ injury cases resulting from another’s actions or circumstances and seeking recovery for their injuries. As a general rule, most contingency fee agreements have the attorney’s fee between 20% and 50% of the recovery for his or her services and need to be explained thoroughly to potential clients.
Knowing what your fees for your case will be gives you so much confidence. At the Vasquez Law Firm, we have offices in North Carolina and Florida. Our experienced injury attorneys are dedicated to representing clients in injury cases caused by another’s actions or circumstances. There is no fee for a consultation. We work on a contingency fee basis for our injury clients. Flexible payment plans are also available. A free initial consultation and bilingual services are also offered to injury clients who need representation for their injuries. Please contact an injury attorney today to begin your recovery from your injuries.
Frequently Asked Questions
What is a contingency fee in personal injury law?
A contingency fee is a payment structure where an attorney's fee is paid only if the client wins their case. If the client loses, they do not owe any legal fees.
How much do personal injury attorneys typically charge as a contingency fee?
The average contingency fee for a personal injury attorney ranges from twenty percent to fifty percent of the total amount recovered for the client, and it can be higher for more complex cases.
Why is the contingency fee model beneficial for clients?
The contingency fee model allows clients to afford legal representation without the worry of upfront costs, as they only pay if they receive compensation for their injuries. This helps clients focus on their recovery rather than financial concerns.
Are there any initial costs for clients seeking legal representation under a contingency fee arrangement?
Most personal injury cases structured under a contingency fee arrangement require clients to pay nothing if they do not receive compensation. Additionally, some firms offer free initial consultations to help potential clients decide whether to proceed with hiring them.
How does the contingency fee model help clients who are financially strained due to their injuries?
The model alleviates the financial burden of legal fees, allowing clients to pursue justice without the stress of incurring costs while they are recovering from their injuries.
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