When dealing with the fallout of an injury, the last thing you want to worry about is how you’ll pay your personal injury lawyer. Many personal injury lawyers have a contingency fee, so you don’t have to stress about upfront legal costs.
Understanding how contingency fees work in a personal injury case can help you make informed decisions while pursuing compensation for your injuries.
Contingency Fees With a Personal Injury Lawyer
A contingency fee is a financial arrangement in which the lawyer doesn’t get paid unless they win your settlement. More often than not, the payment you’ll owe your lawyer will be based on a percentage of your overall settlement or verdict instead of a flat rate or hourly fee.
Not all attorneys have them, but contingency fees are standard in personal injury cases. This concept is designed to make legal representation accessible to injured people who cannot afford personal injury attorneys otherwise.
A contingency fee arrangement aligns your interests with your lawyer’s. You get experienced legal representation without any upfront costs, while your personal injury attorney is motivated to secure the maximum compensation for you since their payment depends on your settlement or court award.
Typical Contingency Fee Percentages
Contingency fee arrangements vary between law firms; however, there is a typical range that most personal injury attorneys stick with. Your contingency fee can be anywhere from 33% to 40% of your settlement or verdict.
Though this is the typical range, it isn’t set in stone. Your contingency fee can vary depending on the lawyer you hire, your location, and other factors.
For example, straightforward personal injury cases might have a 33% contingency fee or even less. For a complicated personal injury claim that potentially goes to trial, you might see your fee jump closer to 40%.
Factors Affecting Percentages
Several factors will affect what percentage you’ll owe your attorney per your contingency fee agreement:
- Lawyer’s Experience & Reputation: More experienced personal injury lawyers or those with significant case closure rates might charge higher legal fees.
- Complexity of the Case: Fees might increase for a personal injury case that requires more extensive research, expert witnesses, lengthy settlement time, or go to trial.
- Stage of the Legal Process: Some personal injury lawyers charge more fees if the case goes to trial.
- Case Value: Some use a sliding scale to determine what percentage of your settlement will go to attorney fees, with the rate decreasing as your settlement amount increases.
- Location: Contingency fees can change based on your state and city. Urban areas tend to have higher costs than suburban and rural areas.
- Risk Involved: Cases with a low success rate might have a higher percentage associated with them because the attorney is taking an increased risk.
Before hiring a law firm, discuss their contingency fee structure with their attorneys.
Additional Costs and Fees in Personal Injury Cases
Even though the contingency fee will cover your attorney’s services, other costs are associated with a personal injury claim. These additional expenses are separate from your lawyer’s fee and are sometimes handled differently depending on what you and your attorney agree on or their policies.
Court Costs
When you file a personal injury lawsuit, just because you’re not making any upfront payment to your lawyer doesn’t mean you won’t have other legal fees. Some of the court fees that you might have to pay are:
- Filing fees for the initial complaint
- Fees for getting official copies of documents
- Fees for serving summons and subpoenas
- Court reporter fees for transcripts and depositions
Some personal injury attorneys will cover these costs upfront and add them to their percentage fee later. Others might require you to pay these court fees as you go. When working with an attorney who operates on a contingency basis, it’s important to learn these things before they start working on your case.
Expert Witness Fees
Many personal injury cases require experts to provide testimony to help establish liability and verify the extent of the damages. These experts can include:
- Life care planners for cases that have long-term care needs
- Medical professionals to testify about medical treatment and medical costs
- Economic experts to calculate lost wages, diminished earning capacity, or future earnings
- Accident reconstruction specialists
Expert witnesses can charge hundreds of dollars per hour for their expertise. Your personal injury lawyer should discuss whether they’re necessary for your case before utilizing their services.
Out-of-Pocket Expenses
Throughout your personal injury case, you might have other out-of-pocket expenses to handle. Some of those might be:
- Photocopying and postage fees
- Travel costs
- Investigator and researcher fees
- Costs to obtain police reports or medical records
The Benefits of Contingency Fees
The idea of having to give up a percentage of your settlement might seem odd or daunting. Still, contingency fee agreements offer benefits that outweigh the potential drawbacks of losing a percentage of your settlement.
Reduced Financial Risk
There’s a significant decrease in financial risk for injured people using a contingency fee system. When dealing with medical bills, lost wages, and other expenses, the last thing you want to worry about is how you’ll pay your personal injury lawyer. You get to pursue justice and compensation without worrying about a hefty legal bill if your case doesn’t pan out.
Access to Legal Representation
This fee structure allows those who can’t afford legal services to secure experienced lawyers for their cases. Many people who’ve been injured because of someone else’s negligence don’t have the extra cash to pay upfront legal fees.
Not having to pay upfront fees levels the playing field by allowing you to seek justice regardless of the size of your bank account.
Motivation for Personal Injury Lawyers
A contingency fee agreement perfectly aligns your interests with your lawyer’s, as their payment depends on winning your case. A personal injury lawyer’s motivation to take a case on contingency can translate into benefits like:
- Building strong case
- Handling your case with efficiency
Personal injury lawyers take cases that they’re more likely to win since they don’t get paid unless they do. So, if they choose to take your case, it’s a good sign that they think you have a good chance of obtaining a fair settlement.
Secure Expert Legal Counsel at a Contingency Fee!
While attorney fees can be substantial, they shouldn’t prevent you from seeking the compensation you deserve. Contingency fees are a great way to ensure you can seek a personal injury settlement, regardless of your financial situation. At Rosenfeld Injury Lawyers, we understand your challenges and are here to help.
Our experienced team of personal injury attorneys is committed to protecting your rights and reaching a final settlement based on the damages. We operate on a contingency fee agreement so you can focus on recovery while we work diligently on your case.
Call (888)-424-5757 or fill out our contact form to book a free consultation with a Chicago personal injury lawyer from our team.