What Is A Contingency Fee?
If you’ve been injured, you might be wondering how much it will cost you to hire a personal injury lawyer. One of the most common and beneficial methods is hiring an attorney on a contingency fee basis. A contingency fee allows you to receive legal representation without having to worry about paying your lawyer up front or by the hour.
The Three Most Common Types of Attorney Fees
A contingency fee is a type of legal fee where the lawyer only gets paid when we win help you win your case. If you don’t win, we don’t get paid. This means that you do not have to pay any money upfront for the attorney’s services and are only responsible for paying fees when we win your case.
This makes it possible for people who may not be able to afford an attorney otherwise to access legal representation.
A flat fee is a one-time payment for legal services. This type of fee is often used in cases that involve simple, straightforward tasks such as drafting a will or filing documents with the court. The advantage of this type of billing structure is that it allows clients to know exactly how much they are paying upfront and eliminates any surprises down the line.
An hourly fee is when an attorney charges their client based on the amount of time spent working on their case. This means that if your lawyer spends more time than expected on your case, you may end up paying more than originally anticipated. On the other hand, if your lawyer finishes quickly, then you may pay less than expected.
Lawyers who perform legal work for an hourly rate will expect you to pay a retainer, which is similar to a deposit. Basically, you would deposit enough money to cover several hours of legal work and then be expected to replenish the retainer when the balance decreases.
How Does A Contingency Fee Agreement Work In A Personal Injury Case?
In cases involving bodily injury, our attorneys are paid a percentage of the total amount of compensation we help you receive. The percentage ranges from 33.33 to 45%, depending on when and how your case is resolved.
Pre-litigation is the first phase of an injury case. If we are able to help you receive a fair settlement without filing a lawsuit, then our attorneys will receive 33.33% of the total settlement for attorney fees.
Litigation begins when a lawsuit is filed. However, many cases are able to settle after a lawsuit is filed but before an actual trial. If we help you receive a settlement during this phase, our attorneys will be paid 40% of the total settlement as compensation for attorney fees.
The litigation fee is a higher percentage than the pre-litigation percentage because there is more work and more risk when compared to the pre-litigation phase.
Trial involves a significant amount of work and can also have risks. For this reason, the attorney fees are 45% for cases that go all the way to trial.
Are Case Expenses Included In A Contingency Fee?
It’s important to note that court costs are separate from the attorney fees in a contingency fee contract. Court costs refer to out-of-pocket expenses related directly to filing and litigating a lawsuit. One benefit of working with an experienced injury lawyer who works on a contingency basis is that we advance all court costs upfront, so you don’t have worry about paying them out-of-pocket.
Like attorney fees, case expenses are only repaid to a personal injury law firm when we help you achieve a successful outcome through settlement or jury verdict.
Case expenses include items such as:
- Accident reports
- Court filings
- Process servers
- Medical record retrieval fees
- Payments to court reporters
- Deposition transcripts
- Expert witnesses
4 Reasons You Should Hire An Attorney On A Contingency Basis After An Accident
Hiring an experienced personal injury lawyer on a contingency basis provides numerous advantages over other forms of billing arrangements, such as hourly rates or flat fees. Firstly, it eliminates the financial risk associated with hiring a lawyer since no payments are required unless there is success.
Secondly, it gives attorneys more incentive than other billing models since the attorney’s compensation increases in relation to the amount of financial compensation you receive.
Thirdly, contingent agreements often include provisions allowing clients access to additional resources such as investigators and experts needed throughout litigation processes.
Finally, having competent counsel at hand helps ensure fair treatment throughout the entire process. Building a strong case from the beginning increases your chance of having a good outcome.
FAQs in Relation To Contingency Fee
What Is Meant By A Contingent Fee?
A contingent fee is an arrangement between a lawyer and their client in which the lawyer agrees to take on a case with no upfront costs, but instead is paid a percentage of any compensation received from the case. This allows clients who may not have the financial means to pay for legal services upfront to still receive representation. The amount of the fee is typically based on state laws and can range anywhere from 33.33 – 45%, depending on the situation.
What Do Most Lawyers Charge For A Contingency Fee?
Most injury lawyers typically charge a contingency fee of 33.3% to 45% of the total amount recovered from the case. Case expenses are also deducted from the settlement amount. The exact rate will depend on whether your case is settled in pre-litigation or litigation, or whether your case goes to trial.
What Is The Typical Percentage Of A Contingency Fee?
The typical fee percentage of a contingency fee for car accidents and other types of personal injury cases usually starts at 33.33%. This means that the lawyer will be paid one-third of a settlement or jury award received by the client as their attorney fees.
In some cases, this percentage may be higher depending on the complexity and duration of the case. However, it is important to note that clients are not required to pay anything upfront in order to hire a personal injury lawyer. Instead, payment is only due when we help you receive compensation from your claim.
What Does Contingency Mean In Law?
Contingency in law refers to a situation where an attorney will only receive a payment if they are successful in obtaining compensation for a client. This means that the lawyer does not charge any upfront fees and instead takes a percentage of the total settlement or verdict as their fee. Contingency agreements help protect clients from having to pay large legal fees out-of-pocket while also providing lawyers with an incentive to fight hard on behalf of their clients.
Free Consultation With A Personal Injury Lawyer (On A Contingency Fee Basis)
If you or a loved one have been injured in an accident, don’t wait. Take action now and contact the experienced personal injury attorneys at Allbee Law Firm.
We understand how traumatic personal injury accidents can be, so we work under a contingency fee basis to make sure that our clients get the legal help they need without breaking their budget. Our team is committed to getting you fair compensation for your injury and protecting your rights every step of the way. Contact us today at (817) 244-6453 to learn more about how we can fight for justice on your behalf!