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When an accident caused by someone else’s negligence leaves you injured, out of work, and neck deep in medical bills, the last thing you want to think about is spending more money on a lawyer to help you fight for the compensation you deserve. Fortunately, you don’t have to, as most personal injury attorneys work on what’s called a “contingency fee” basis. Under this arrangement, you will not have to pay upfront to start work on your case.
This system is designed to allow anyone with a legitimate personal injury claim to seek accountability and fair compensation without risking financial ruin just to do it. But exactly how do contingency fees work?
What is a Contingency Fee?
A contingency fee means you pay your attorney nothing unless they win your case. Rather than charging hourly rates or an upfront retainer, they agree to take a certain percentage of the final recovery amount. If there is no recovery, there are no attorney’s fees.
The industry standard rate is 33% for cases that settle out of court and 40% for cases that go to trial. Individual attorneys may charge different rates, though, so be sure to ask any prospective attorney how they charge during your initial consultation. They are ethically bound to clearly outline this information in your client agreement, so you’ll know from the beginning what your fee will look like if you recover your compensation.
What Are Case Costs?
While contingency fees mean you don’t have to pay an attorney fee unless they win, you may need to pay for other costs associated with a personal injury claim. These are called “case costs,” and they often include:
- Court filing fees
- Medical records and reports
- Deposition transcripts
- Investigation and documentation
- Expert witness fees
- Travel expenses
Attorneys generally advance these costs, so you don’t have to pay them upfront. If they win your case, case costs come out of the total compensation. Some lawyers will still charge for these expenses regardless of the outcome, while others will waive the fees if they do not win.
Contingency Fees vs. Hourly Billing
Contingency fees are quite different from the hourly billing model that many other types of attorneys typically use. While contingency fees are only paid if the attorney recovers compensation for their client, hourly billing charges the client for every hour worked, regardless of whether they win or lose.
While the most apparent advantage of contingency fees is that you only pay if you win, there’s also the matter of attorney motivation. When your attorney knows their payment depends on a successful case, they’re incentivized to:
- Build the strongest case possible
- Seek out all available evidence
- Negotiate aggressively
- Take your claim to court when necessary
- Fight for every dollar possible
Contingency fees align your attorney’s goals with your own. You never have to worry about whether they’re invested in seeking an optimal outcome in your case.
Common Questions about Contingency Fees
At Chatham Gilder Howell Pittman, PLLC, we value transparent, honest communication about our services, and we’re always happy to answer any questions regarding contingency fees. Here are some of the most common ones we’re asked.
What happens if I lose my case?
If there is no recovery, you owe nothing in attorney’s fees. Depending on the agreement, you may or may not be responsible for case costs. However, many attorneys will absorb those costs when no compensation is recovered.
Can I negotiate the contingency fee percentage?
Some attorneys may be open to negotiating their fee, while others are more rigid in their approach. Be sure to ask your prospective attorney about their rates during your initial interview.
Will I still get a significant portion of my settlement?
Yes, although some of your compensation will go to attorney’s fees and case costs, your lawyer’s goal is always to maximize your compensation and provide the financial stability you deserve after you’ve suffered injuries due to someone else’s negligence. You’ll have a chance to see all the figures before anything is finalized, so there are no surprises.
Contact an Experienced Personal Injury Attorney Today
A sudden accident can be financially devastating, but the process of seeking compensation doesn’t have to be. The team at Chatham Gilder Howell Pittman, PLLC, will aggressively advocate for the recovery you deserve, and you won’t pay our fee unless we win your case. Contact us today for your free consultation.
