Contingency fees are an arrangement in which an attorney agrees to represent a client on the condition that the attorney will only receive a payment if they can recover compensation for the client successfully. In other words, if you don’t get a recovery, neither does your lawyer. At Shiner Law Group we call this the Shiner Free Guarantee.
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How Does a Contingency Fee Work?
Most personal injury attorneys get compensated on a contingency fee basis, meaning they don’t get paid unless you do. Under a contingency fee arrangement:
You and your lawyer agree on what percentage of recovery your lawyer will keep as their fee. For example, you and your lawyer agree that if the case settles, your lawyer will keep 33 1/3% of the settlement amount as their fee. If the case goes to trial and you win, your lawyer will retain 40% of the jury verdict as their fee. Your lawyer pays all of the expenses associated with pursuing your claim from their pocket. If there is no recovery, you are not obligated to pay any attorney fees or costs. You usually pay nothing upfront to hire an attorney on a contingency fee basis.
The Basics of Contingency Fees
A lawyer takes a percentage of your settlement or court award as their fee. The typical contingency fee is one-third of the total settlement or award.
So, if you receive a $300,000 settlement from the insurance company, your lawyer would get $100,000, and you would get $200,000.
There are some advantages to working with a lawyer on a contingency fee basis. First, there is no cost to you upfront. Second, if your case is unsuccessful, you don’t owe the lawyer anything.
However, there are also some disadvantages to contingency fees. The most obvious one is that you will end up with less money if you win your case because the lawyer will take a portion of the settlement. Additionally, some people feel like they have less control over their case when working on a contingency fee basis because the lawyer has a financial incentive to settle the case quickly rather than taking it to trial.
What Types of Cases Are Contingency Fee Arrangements Used?
Contingency fees are most often used in personal injury cases like car accident claims, slip and fall accidents, medical malpractice cases, defective product injury claims, and more.
What Percentage Will My Attorney Charge?
The attorney’s contingency fee is a percentage of the total amount recovered, and it is usually one-third to 40 percent. The attorney may also charge additional fees for expenses incurred during the case.
What Other Fees Should I Expect as Part of the Personal Injury Claims Process?
In addition to a contingency fee, there are other fees that you may be responsible for such as:
- Filing fees
- Investigation fees
- Expert witness fees
- Court costs
Your attorney will likely advance these costs on your behalf and then be reimbursed from any settlement or award you receive. Therefore, it is important to discuss all potential fees and expenses with your attorney up front to eliminate any potential surprises.
How Much Does a Personal Injury Lawyer Charge?
A personal injury lawyer’s contingency fee is typically one-third of the total amount you receive in compensation. The lawyer may also charge a small percentage for any costs related to your cases, such as court filing fees and the cost of obtaining medical records.
Contingency Fee Variations
There are a few different ways that contingency fees can be structured in personal injury cases. The most common is the “pure” contingency fee, where the lawyer takes a percentage of the total settlement or verdict as their fee. This percentage can vary depending on the stage at which the case settles, with some lawyers taking a higher percentage if the case goes to trial.
Other common variations include the “hybrid” contingency fee, where the lawyer takes a smaller percentage of the total settlement or verdict but also charges an hourly rate for their time; and the “modified” contingency fee, where the lawyer takes a smaller percentage of the total settlement or verdict but only gets paid if they recover money for the client.
The important thing for potential clients to remember is that they should always ask their lawyer how their contingency fee will be calculated before hiring them. This way, there are no surprises down the road and both parties are on the same page from the start.
Contingency Fee Example
A contingency fee is a fee charged by an attorney for legal services only if the case is won. The lawyer and client agree on a set percentage of the total amount of damages awarded to the plaintiff as compensation for the lawyer’s services. If no monetary damages are awarded, then the lawyer does not receive a fee.
For example, assume you are seriously injured in a car accident caused by someone else’s negligence. You hire a personal injury attorney on a contingency basis. This means that your attorney will only receive a percentage of any monetary damages awarded to you as compensation for their legal services. If you do not win your case, then your attorney does not receive a fee.
What Are Some Other Kinds of Fee Structures?
There are a few different ways that attorneys can choose to structure their fees in a personal injury case. For example, some attorneys may work on an hourly basis, meaning they charge by the hour for the time they spend working on your case. Others may choose to work on a contingency fee basis, which means they only get paid if you win your case.
Some attorneys may also charge a flat fee, which is a set amount that covers all of the work that will be done on your case from start to finish. This option can be helpful because it allows you to know exactly how much you will need to pay upfront without having to worry about any additional costs down the road.
No matter what kind of fee structure your attorney chooses, it is important that you understand all of the details before moving forward with your case. This way, there are no surprises, and you can be confident that you are getting the best possible representation.
Benefits of Working With a Contingency Fee Lawyer
There are many benefits to working with a contingency fee lawyer in a personal injury case. One of the most significant benefits is that you do not have to pay any upfront costs. This means that you can get the legal help you need without having to worry about how you will pay for it. Another benefit is that you will only have to pay the lawyer if they win your case. This gives you a much better chance of being able to afford the legal help you need.
Experienced Contingency Fee Lawyers
The lawyers at Shiner Law Group have years of experience helping people with personal injury cases. For example, if you were injured in an accident, you may be entitled to financial compensation for your injuries. We can help you get this compensation through a personal injury case against the responsible party. Speak with a lawyer today to learn more about our firm and how we can help you.
When is the Contingency Fee Paid?
A contingency fee is a percentage of the total compensation that you receive from your personal injury case. The lawyer’s fee is only paid if you win the case or settle it out of court. If you lose, the lawyer does not get paid.
What is a Fee Agreement?
A fee agreement is a contract between an attorney and a client that sets forth the attorney’s fees for representing the client. The agreement should set forth the hourly rate or flat fee that the attorney will charge, as well as any other conditions of the representation, such as whether the client will be responsible for paying any out-of-pocket expenses.
An attorney and client may enter into a fee agreement at any time during the attorney-client relationship. However, it is generally best to do so before the attorney begins work on the client’s behalf so that both parties are clear about the terms of the representation from the outset.
Hiring A Contingency Fee Lawyer For An Accident Case Near Me
If you have been in an accident and are looking for a lawyer to help you get money for your damages, then consider finding one that has contingency fees. This means that the lawyer will only get paid if they win your case and you receive a financial settlement from the at-fault party. These lawyers work on a percentage of what they win for you, so it is in their best interest to give it their all to make sure that you receive the maximum amount possible.
Many different lawyers offer this type of arrangement, so it should not be too difficult to find one near you. You can ask around at work or look online for reviews to find out which ones have been recommended by others in similar situations. You can also search on Google or Yahoo to see what other people say about certain lawyers that offer contingency fees. When searching, make sure to include the words “accident” and “contingency” so that you get more specific results. If there are any complaints or negative reviews against a particular lawyer, make sure to avoid them as well.
You should always consult with several lawyers before deciding which one will represent you in court. Compare how much money they charge, what type of cases they have handled, and their success rates. You should also make sure that you feel comfortable with the lawyer you choose and that you think they will be able to handle your case professionally.
If you were injured in an accident, it is essential to consult with a personal injury lawyer as soon as possible. They can help you get the compensation you deserve for your injuries and damages. However, if you wait too long to hire one, then it may be more difficult for them to prove your case in court because the other driver’s insurance company will have already paid out a settlement to cover their expenses.