Almost every accident victim has a similar concern: Can they afford a good personal injury
attorney?
Although a victim might realize the dire need to have an attorney present them in their case,
there is always a general feeling that the associated representation costs are beyond reach.
However, realizing that most injury lawyers charge their fees on contingency terms ought to be
good news.
A contingency fee agreement is one that allows the victim to only pay the legal fees after the
attorney successfully recovers compensation for their claim. That means that legal advice is
accessible to almost everyone.
How do Personal Injury Lawyers Charge?
Attorneys use three major bases when charging for their legal services:
Hourly Rate
The hourly rate covers the time that the attorney has spent on the case. Normally, the lawyer
will generate an itemized statement then bill the client periodically as the case progresses.
Some attorneys prefer holding a retainer in trust, then billing against it until the money runs
out. Afterwards, the attorney bills the client monthly on any time spent on their account.
Although most lawyers prefer hourly rating, the amount charged need to be reasonable.
Fixed Rate
In this case, the client and the lawyer agree on a fixed, lumpsum fee for the entire
representation. Fixed-rate system is common in cases of will preparations.
Contingency Fee
Contingency fee agreements occurs where both the client and the attorney agree on the fees
based on the amount settled. Mostly, the fee is in form of a percentage of the total settlement
granted.
However, it is worth noting that extra costs may be involved when filing your claim. Such costs
include deposition costs, expert witness fees, court filing fees, postage and copies, and the cost
to obtain reports (accident and medical) and other documents.
To ease client’s cost burden, most law firms cover these extra costs beforehand with a hope of
reimbursement once the settlement is done.
It is equally important for the client to inquire about any other potential fees or charges that may arise throughout the case, such as court filing fees, expert witness costs, or administrative expenses. Clarifying these details upfront will help avoid any misunderstandings and ensure transparency in the legal process. Clients should also ask how any recoveries, settlements, or verdicts are calculated, especially when factoring in the contingency fee. This understanding can significantly impact the final amount the client receives and provide greater peace of mind throughout the legal proceedings.
Rules for Contingency Fee Agreements in the Personal Injury Cases
Most states require that all contingency fee agreements fulfill the following conditions:
- All agreements must be put in writing.
- All agreements to state the specific percentage as charged by the lawyer
- The client should be able to negotiate the percentage
- The agreement has to acknowledge that the client has reviewed the client’s right clause
- There has to be a cancellation clause that allows the client to cancel the contract within
- three business days, and without having to incur any attorney’s fees
How Do Personal Injury Lawyers Earn Their Contingency Fees?
Personal injury lawyers put in a lot of work to ensure that the client secures all the
compensation due to them.
The attorney fee is attributed to the following services:
Performing an investigation: This process involves taking relevant statements from the
witnesses, site photography, police reports, coming up with accident diagrams, among
others.
Evaluating defendant’s liability: Evaluation stage is meant to clarify any legal issues that
will arise from the facts provided. Your personal injury lawyer will apply the law to all
the provided fact in order to generate an argument
Calculating the damages: Your attorney will review all medical bills and expenses and
other expert valuations. In addition, the attorney will talk to you about the extent of
pain and suffering you are experiencing. If you have suffered a permanent disability, the
lawyer will calculate all future damages.
Negotiating your claim: This is probably one of the most difficult talks in your claim
process. However, your attorney is there to talk with insurance adjusters—who are very
good negotiators—then settle at an agreeable amount.
Filing the lawsuit: Unlike filing a claim in the small claims court, filing a lawsuit requires
a careful drafting of a formal complaint. In the case of complaint draft, every single
sentence matters, and will be evaluated.
Executing pre-trial discovery process: This process involves conducting the depositions,
sending in (and answering) interrogatories, and demanding access to the available
physical evidence.
Mediation representation: Most courts favor mediation since it reduces the size of their
dockets. As such, the court might try to put some pressure on you to accept the
mediation. You should allow your lawyer to represent you in the mediation proceedings.
Conclusion
Overall, the cost of representation is nothing compared to the value that your attorney will
bring on board. Ensure you engage a lawyer who has a good winning record especially in the
personal injury cases.
