Hiring a lawyer can be daunting, especially considering the potential cost of dealing with a personal injury case. However, you can hire a lawyer who works on a contingency fee basis.
This favors those who would otherwise be unable to afford legal representation. Here are details you need to know about contingency fees and its benefits and disadvantages.
What Are Contingency Fees?
A contingency fee is a payment schedule where the legal fees depend on the case outcome. This means the attorney is paid if they successfully recover compensation for the client through settlement or court judgment.
The fee is calculated as a percentage of the amount given as compensation. The percentage can vary depending on local regulations and the case’s complexity.
Consulting with professionals from Salvi Schostok & Pritchard P.C. will help you understand how the percentage is arrived at.
How Do Contingency Fees Work?
The following are ways the contingency fees work.
Initial Agreement
Before representation begins, you will sign a contingency fee agreement. This document will outline the percentage the lawyer will take and how other costs, such as court elevation costs, expert witness expenses, or investigation costs, will be handled. You must keep a record of everything and make copies of the agreement for your records.
Progress of the Case
The lawyer will pay the up-front costs when pursuing your claim. It is usually repaid with money obtained from the settlement or verdict.This is why it is crucial to go through your agreement with the lawyer and know what happens in certain situations. You may have to compare different lawyer rates and offers to choose an agreement that works well for you.
Benefits of Contingency Fees
Some of the benefits that come with contingency fees are discussed below.
Access to Justice
Contingency fees allow people without the means to pursue legal action to get assistance even when they could otherwise not afford to due to how expensive legal services are.
No Financial Risk
Since you pay only if you win, the client runs little to no financial risk and feels like the lawyer needs to take advantage of their situation.
Motivated Advocacy
Your lawyer’s success is directly tied to your success, which is a great motivation for them to work hard in your case.
Disadvantages to Consider
The drawbacks associated with contingency fees include:
Percentage Might Be High
Although you do not pay until you win, the percentage at which lawyers take a settlement to represent their clients might feel a lot, especially when the payouts are huge.
Other Costs
Although the attorney’s fee is contingent, the reimbursement for things like court filings, medical records, or expert witnesses falls to the client, win or lose. When looking for a lawyer, this is one of the factors that should guide you.
Complex Cases
They are often too complex or problematic for lawyers to represent clients unless there are considerable possibilities for success. Most lawyers do not want to spend time representing a client on contingency fees when they doubt they’ll win the case.
Is a Contingency Fee Right for You?
If you want to figure out if engaging a lawyer according to a contingency fee basis is the way to go for your injury case, consider the following:
- The Strength of Your Case: A strong case with straightforward liability and damages may grab the attention of lawyers willing to work on contingency.
- Potential Recovery Amount: Some attorneys may find if the damages you are seeking are low, the case is not worth pursuing on a contingency-fee basis.
- Your Financial Situation: If you cannot pay upfront, you will want to look for a contingency fee arrangement.
Endnote
Contingency fees are essential in promoting access to legal representation for personal injury victims. By understanding how they work, the victim can make an informed decision about hiring a lawyer and have the confidence to walk through the process.
Always read over and understand the terms of the contingency fee agreement before signing, and don’t hesitate to ask your attorney about costs and fees relative to your case.
