All personal injury lawyers charge clients in one of two ways: contingency fees or hourly billing rates. What is the best for you and your case.
An attorney who charges a contingency fee, will only get paid if he/she wins at trial or settles your case for some monetary value. If the attorney does not win or is unable to settle your case, then you will not be responsible for paying any legal fees.
Contingency fees are calculated as a percentage of the total settlement or judgment. Most attorneys will take a percentage of the gross award - before deducting expenses; however some attorneys will take a percentage of the net award - after deducting expenses.
Percentages vary from firm to firm and you may be able to negotiate the fee with your attorney. However, most attorneys will charge anywhere from 20% to 40%. Further, the rate may differ depending upon if the case settles or goes to trial. You will want to read your retainer agreement in dept to determine if your attorney will take a higher percentage if the case goes to trial.
You will also be responsible for reimbursing your attorney for any expenses incurred on your behalf. Many attorneys working on contingency will waive expenses if they are unable to successfully settle or win your case, but others may hold you responsible for expenses even if you do not settle or win a judgment.
The advantage of a contingency fee agreement is that you do not have to pay anything if your attorney cannot win or settle your case. This arrangement will ensure that your attorney is motivated to secure the largest possible settlement or judgment as he/she will benefit financially from the settlement/judgment.
The main disadvantage of a contingency fee agreement is if your attorney settles the case with very little time or effort, then you may feel as if he did not earn his fee. However, this disadvantage is clearly outweighed by the advantages to having a contingency fee agreement.
If an attorney takes an auto accident case on an hourly fee basis, then you will be billed for each increment of hour he/she works on your case. You will also most likely be required to put down a retainer. Therefore, even if you do not win or settle your case, you will be responsible for paying legal fees.
Most attorneys will not charge hourly fees for an injury case. If that is the offer, it most likely means your attorney does not feel he/she has a good chance of winning or you do not have a good case. Therefore, you will most likely want to avoid hiring an attorney on an hourly basis for an injury claim.
When choosing an accident attorney, there are a few important pieces of information that will help you evaluate each attorney:
This article is not legal advice and is not intended as legal advice. This article is intended to provide only general, non-specific legal information. This article is not intended to cover all the issues related to the topic discussed. The specific facts that apply to your matter may make the outcome different than would be anticipated by you. You should consult with an attorney familiar with the issues and the laws of your jurisdiction. This article does not create any attorney-client relationship.