Percentages of Contingency Fee

Generally, a personal injury lawyer is going to receive thirty three percent of the final settlement amount in the case. Nevertheless, cases that go to trial usually incur varying expense. The objective of this charging structure is to decrease the client’s financial instability in hiring a lawyer to represent them.

The Way In Which a Personal Injury Fee Structure Typically Works

For those that choose to hire a lawyer for a personal injury claim, most law firms adhere to the same charging structure. Collecting a percentage-based fee at the conclusion of the case is a industry standard of practice.

In other kinds of cases, like those involving legal representation or the supervision of the devising of a living trust or will, the expense of hiring a lawyer might comprise of an hourly fee and retainer. These types of cases vary quite a lot in the charging structures lawyers use opposed to hourly-rate cases.

Comprehending Contingency Fees

Contingency fee structures simply means that any fees the law firm receives depends on the lawyer winning a settlement or court award on your behalf. In essence, you pay zero up front for legal representation – the law firm manages all your legal expense up to the conclusion of the case.

Furthermore, the fee is contingent on the whole amount of the total award or settlement. Because law firms utilize percentages for establishing the contingency fee, the precise amount differs from case to case. Nevertheless, you should have the chance to discuss this fee structure and the percentage a lawyer is going to take prior to you deciding to hire them and signing any paperwork.

Why Is a Percentage Fee a Portion of the Industry Standard?

Personal injury cases can conclude with just about any amount as a settlement. Every case is different, and the settlement size is subject to how severe the client’s injuries are and other particulars in the case.

By making the fee a percentage of the concluding settlement amount, the victim can be assured that the lawyer is going to work as hard as they can to achieve a favorable result in the case. The goals of the lawyer and client merge, as acquiring a larger settlement means each party receives more money.

Contingency Fees Decreases the Financial Instability for Clients

Contingency fee structures are advantageous for the client for a multitude of reasons. For instance, clients don’t have to be concerned about paying:

• Up-front expenses when they were already struggling financially prior to the accident
• Out-of-pocket expenses when they were unable to work throughout their recovery
• Nothing at all if they don’t get compensated in their case

When a victim hires a lawyer in a personal injury case, the law firm assumes a lot of financial risk.

No Win, No Charge

When operating under contingency fee systems, the lawyer might earn no fee. If the lawyer is unsuccessful at winning a settlement or court award, their client pays zero.

The objective is to help personal injury clients receive the financial recovery they want, not add to their strain and concerns. No one should have to relinquish their right to be compensated when another party injured them due to an inability in paying legal fees.

Settling Personal Injury Cases Requires Time

The initial step is investigating and building a case against the responsible party. Once the case starts, negotiations with the responsible party’s insurance company or lawyer can take multiple weeks, possibly longer. If the case ends up heading to court, the lawyer is required to prepare for trial, then arguing the victim’s case in court.

With all the steps in the process, it can be challenging to estimate legal fees for personal injury cases. In essence, knowing the percentage the lawyer might take in advance can take additional financial pressure off your back.

Source:

1. The percentage lawyers take for personal injury claims. Farmer & Morris Law, PLLC. (2022, May 25). Retrieved December 13, 2022, from https://www.farmermorris.com/faqs/percentage-lawyers-take-for-personal-injury-claims/