If you’ve suffered an injury in an accident and are considering hiring a lawyer, you’ve likely come across the term “contingency fee.” But what exactly does this mean, and how does it impact your personal injury case? A proper understanding of the financial aspects of your case is essential to ensuring you feel confident and informed. Here, you can learn what a contingency fee is, how it works, and why it benefits accident victims in Florida.
What Is a Contingency Fee?
A contingency fee is a type of payment arrangement between you and your lawyer. This arrangement makes the lawyer’s fee contingent upon winning your case. Instead of paying the lawyer an hourly rate or an upfront retainer, you agree that they will receive a percentage of the settlement or verdict if the case succeeds. In other words, the lawyer only gets paid if you recover compensation.
If you don’t win your case, you don’t owe your lawyer any fees. This arrangement is designed to make legal services accessible to clients who might not otherwise be able to afford them.
How Does a Contingency Fee Work?
In personal injury cases, a contingency fee agreement is typically used. When you hire a lawyer on a contingency fee basis, the lawyer will outline a percentage of the settlement or judgment that they will receive if they successfully win the case on your behalf.
Here’s how it works:
- Percentage agreement: Before you sign the contract, your lawyer will agree on the percentage they will receive if they win the case. This percentage is usually between 25% and 40%. It all depends on the complexity of the case and the stage of the litigation.
- Payment upon success: The lawyer will only receive payment if your case results in a settlement or a favorable court verdict. If the case is not successful, you are not required to pay your lawyer any fees.
- Costs and expenses: While the lawyer’s fees are contingent on winning the case, it’s important to note that other costs may still be associated with your case. These other expenses may include filing fees, expert witness fees, or investigation costs. These costs may be deducted from the settlement or verdict amount. They might also be covered by the lawyer’s fee percentage depending on the agreement.
Why Choose a Contingency Fee Arrangement?
Contingency fees are especially beneficial for clients who are dealing with financial difficulties due to an injury. They allow victims to pursue their cases without the need for upfront payment.
Here are some key reasons why a contingency fee arrangement is advantageous:
- Access to justice: Personal injury cases can be expensive to pursue. If you had to pay hourly rates, many people might be unable to afford a lawyer. With a contingency fee, you can have legal representation without paying out-of-pocket expenses upfront.
- Incentive for success: Lawyers working on a contingency fee have a strong incentive to secure the best possible result for their clients. This is because their compensation is directly tied to the outcome of the case. The more successful the case, the more the lawyer stands to earn. This ensures that the client’s goals align with the lawyer’s.
- Risk-free for clients: If you don’t win your case, you won’t owe any legal fees. This makes pursuing a personal injury claim much less risky for you as a client. You are free to focus on your recovery while the lawyer focuses on achieving the best possible outcome.
- No financial risk: If you cannot afford upfront legal fees, a contingency arrangement removes that financial barrier. Your lawyer’s fees are only taken if you win. This makes it a less financially burdensome option for many people who have been injured.
Contingency fee arrangements provide a fair, accessible, and low-risk way for injury victims to seek justice and recover compensation without added financial stress.
When Is a Contingency Fee Agreement Used?
Contingency fee agreements are commonly used in personal injury cases, such as:
- Car accidents
- Slip and fall accidents
- Medical malpractice
- Trucking accidents
- Wrongful death claims
- Product liability cases
- Workers’ compensation claims
These types of cases often involve significant medical bills, lost wages, and emotional suffering. Since the victims of these accidents may not have the financial means to pay a lawyer upfront, a contingency fee arrangement allows them to pursue justice without worrying about legal fees.
How Much Does a Contingency Fee Lawyer Charge?
The percentage a lawyer charges for a contingency fee can vary depending on the case’s complexity, the stage at which the case settles, and the specific agreement between the lawyer and client. Typically, the lawyer’s fee will range from 25% to 40% of the total settlement or award.
It’s important to have a clear agreement in writing that outlines the lawyer’s fees and other costs associated with the case before you proceed. You should try to make yourself fully informed about the terms of your fee agreement before you select a lawyer to represent you.
What Other Costs Might I Be Responsible for in a Contingency Fee Arrangement?
While the lawyer’s fees are contingent on winning your case, other costs are usually associated with pursuing your personal injury claim.
These other expenses may include:
- Court filing fees
- Investigation costs
- Medical records or expert witness fees
- Deposition and transcript fees
In many cases, these costs are deducted from the final settlement amount. In some contingency fee agreements, the lawyer may agree to cover these expenses upfront. Make sure to clarify this during your initial consultation so that you are fully aware of any potential costs.
Contact Shaked Law Firm, P.A. Today for a Free Consultation
If you’ve been injured in an accident and are unsure how to proceed, contact Shaked Law Firm, P.A. Our attorneys will provide a free consultation to help you understand your rights and the best path forward. We will discuss how a contingency fee agreement can help you pursue your case without worrying about out-of-pocket expenses.
Contact us today at (305) 937-0191 to schedule your free case evaluation. Let us help you learn more about recovering the compensation you truly deserve.