Understanding Contingency Fees in Personal Injury Cases
May 25, 2023
When a person has been injured due to the negligence of another person, hiring a personal injury lawyer can be an important decision. One of the most important things to consider when hiring a personal injury lawyer is understanding their fee structure. In particular, understanding contingency fees in personal injury cases is paramount.
Contingency fees are a form of fee arrangement that allows the lawyer to get paid only if they successfully win or settle a case. The lawyer receives a percentage of the total amount of money that is recovered in the case. This percentage varies and is typically between 25-40%. The advantage of contingency fees is that it eliminates the need for the client to pay any fees up front, as the lawyer will only receive money from the settlement or award from the court.
It is important to understand that there are some potential drawbacks when it comes to contingency fees. Because the lawyer will only receive money if they win the case, it is in their best interest to try and settle the case as soon as possible. This can lead to them not being as aggressive in negotiating with the other party. In addition, if the case goes to trial and is not successful, then the lawyer will not get paid.
When selecting a personal injury lawyer, it is important to ask questions about the contingency fee structure. Make sure that you are comfortable with the percentage and the terms of the agreement. Be sure to ask how expenses, such as court costs, will be handled. Ultimately, contingency fees in personal injury cases can be very beneficial for clients who have been injured, as it allows them to get representation without having to pay any money up front. It is essential, however, to understand the fee structure in order to make an informed decision about the lawyer you hire.
Questions to ask when considering a personal injury lawyer include:
- What is the contingency fee percentage?
- What are the terms of the agreement?
- How will court costs and other expenses be handled?