Understanding Contingency Fees for Personal Injury Claims
Posted on behalf of Goldberg Finnegan, LLC on Aug 06, 2020 in Personal Injury
After being injured in an accident, you may be hesitant to hire a lawyer because you think you cannot afford it. However, most personal injury lawyers work on a contingency fee basis. This type of fee agreement allows a lawyer to provide legal services to an injured victim at no upfront cost, making it possible for anyone to be able to afford legal representation.
At Goldberg Finnegan, our services are provided on contingency. You owe us nothing unless we help you obtain compensation for your injuries and damages. We also do not charge you for an initial consultation with a member of our legal team to learn more about your rights and legal options.
Below, we further explain contingency fees and how they may benefit you after suffering an injury caused by another’s negligence.
What Is a Contingency Fee?
A contingency fee arrangement is one where fees are only due if your lawyer successfully obtains a recovery on your behalf. He or she will collect a fee from the amount awarded. This is generally a percentage of your recovery. Should your lawyer be unable to recover a settlement or verdict for you, he or she will not be paid. Your lawyer’s fees are contingent on you getting compensated for the losses you have suffered.
Most lawyers who work on contingency will not accept a case and put in the time and effort unless they have good reason to believe the case will have a successful outcome.
How Other Lawyers May Charge You
Aside from a contingency fee arrangement, there are other ways a lawyer may charge for their legal services. These arrangements can be quite costly, especially if a personal injury case takes longer than anticipated:
- Retainer fee – A retainer fee works similarly to a down payment, whereby a lawyer requires payment before starting on a case. The retainer will cover a portion of legal services that both you and the lawyer agreed to. Any extra work could be billed on an hourly basis or at a flat fee.
- Hourly rate – Other lawyers may charge to utilize their services by the hour. You would be billed on a monthly basis based on the hourly rate and number of hours spent on the case.
- Flat fee – A lawyer may have certain flat fees based on the type of case. For instance, he or she may charge the same rate for divorce cases or DUI cases.
Benefits of Working With a Contingency Fee Lawyer
Legal fees can quickly add up if the case is complex and it takes longer than usual to reach a resolution. Working with a contingency fee lawyer allows an injured victim the chance obtain legal representation and pursue a claim without the financial risk. You would owe nothing for using his or her services if the case is not won.
When you enter into a legal agreement, it is important to know the payment terms and conditions before signing a contract. Make sure that you understand the services that are being provided and how they are being provided before you decide to hire a lawyer to represent your bests interests.
When is the Contingency Fee Paid?
Contingency fees are usually paid directly out of the recovery once a case is closed. This could be achieved through settlement negotiations or a courtroom verdict. You would not have to pay out-of-pocket to cover lawyer fees. However, you may be required to pay court fees and other costs. The remainder of the award would be issued to you.
How Much Would the Contingency Fee Be?
The contingency fee is a percentage of the total amount awarded. This percentage will be based on a number of different factors unique to your situation, such as the nature and extent of your injuries, the amount of your medical bills in the past and into the future, loss of wages in the past and into the future, the effects your injuries have had on your life, and whether your injuries resolve or are permanent. Since nobody can answer these questions at the beginning of each case, it is impossible to know how much the fee will be.
However, on average, the contingency fee for a lawyer is 33 and one-third percent if the case is resolved quickly through a settlement or mediation before filing a lawsuit. The contingency fee could go up to 40 percent if a lawsuit is filed or it is absolutely necessary to go to trial in order to maximize your recovery.
Call for a Free Case Review To Get Started
Reach out to a licensed Silver Spring personal injury lawyer from our firm today. We have more than two decades of experience helping injured victims seek maximum compensation for their damages. To date, we have successfully recovered more than $130 million in verdicts and settlements for our clients.
We welcome the opportunity to review your claim in a free consultation. You are under no obligation after this meeting to hire us. There are no upfront fees for our services. We only get paid if you do.
Have Questions? We Have Answers. Ph: (888) 213-8140.