What is a Contingency Fee?
Posted on July 18, 2022 in Debt
If you are planning to file a personal injury lawsuit, you may have heard that personal injury attorneys will charge you on a contingency basis. A contingency fee is a payment that is only due if there is a favorable result. The fee an attorney takes is based on their success in your case.
According to Phoenix personal injury lawyers Wattel & York, the vast majority of personal injury attorneys will charge their clients a contingency fee rather than an hourly fee. There are some types of attorneys who are actually forbidden from taking a contingency fee. Family attorneys who represent clients in divorce cases are not allowed to take this type of payment. Neither are attorneys who represent clients accused of a crime.
What percentage of my award will an attorney take?
A personal injury attorney will take between 30% and 50% of your award. On average, a personal injury contingency fee will be around 33%. There are some attorneys who will charge you a higher fee based on their reputation. It is always a good idea to call around it to several attorneys and ask them questions about their experience with cases like yours and the contingency fee they will charge you.
Lawyers may also base the contingency fee on how complicated the case is and any risks involved. The amount of money a case will cost will also affect your contingency fee.
What kind of personal injury case do you have?
Were you injured in a two-car accident where the other driver was clearly at fault? Did you slip and fall at a grocery store on some spilled oil that had not been cleaned up, or is your case much more complicated than that?
If you were injured by a defective product, The personal injury law firm that you hire will have to do a lot of research to prove your case. They will have to determine whether or not the designer or manufacturer is to blame or if poor instructions caused your injuries. Technology is ever-changing, and a lawsuit against a technology company can be complicated and difficult to prove.
An attorney will have to determine if other victims would be willing to testify in the case or even join the case in a class-action lawsuit.
If you have a medical malpractice case, it will require extensive research into the type of medical procedures that you have had. The attorney’s official fee may be a contingency fee. However, they may need to hire expert witnesses, which will increase the cost of your case significantly.
What kind of risks are there involved in your case?
When an attorney works on a personal injury case, they will spend hours researching the facts and negotiating with attorneys for the opposing side. The risks are much higher if the opposing legal team has a strong case against you than if you have an open and shut case. Hence, your contingency fee will be much higher than it would be if your case were open and shut.
Personal injury attorneys worry about their reputations. When you go in for your free consultation, they want to make sure that you have a valid case. They do not want to be known for representing dishonest clients. They are aware that there are people out there who will try to make a personal injury case out of nothing.
If your personal injury attorney is unable to negotiate a decent settlement amount for you, you may have to go to court. If you go to court, the defendant’s lawyer may try to impeach your character. They can do this by digging into your past. They may look at things such as your credit rating, your medical history, and even any criminal records that you may have. If they feel you have a valid case, but you have an impeachable character, they may charge you a higher contingency fee because your case will be harder to win.
How to Keep Your Costs Down
Although a personal injury attorney will work on a contingency basis, there are some things for which you must pay whether you win or lose. An attorney will charge you for court costs, copies, and legal documents. You can keep the cost down by documenting your case very well. Remember to get a copy of the accident report and bring your attorney copies of your medical reports. Save the bills for all of your medical expenses connected to your injuries. If you take care of this first, an attorney will not be able to overcharge you for small clerical expenses.
If you believe you have a personal injury case, it is always worth talking to an attorney. You deserve to be compensated for your injuries, and an attorney can get you the money you deserve.
Related blog posts
Need expert financial advice?
Let TurboFinance connect you with the best consulting services and resources to help you take control of your finances and find a path to build wealth.Get A Free Consultation Today!