Understanding Contingency Fees in Personal Injury Cases
When faced with a personal injury case after an accident or injury, you may have heard the term “contingency fees” as well as the promise that you will not pay any fees unless you win your case. Perhaps you don’t have a full understanding of contingency fees.
Contingency fees are the agreement between a lawyer and the client where the client does not have to pay any lawyer fees, but the lawyer gets a percentage of the winnings from the lawsuit. If the lawsuit results in zero compensation, the lawyer is left with nothing as well. The client pays no up-front expenses. The fee is a percentage, so it grows as the amount of recovery grows. This agreement allows lawyers to represent those who are victims of negligence and cannot afford legal representation.
While it may be surprising that lawyers are willing to work hard with no guarantee of being paid, not only do lawyers work diligently, but they are exposed to significant expenses during cases that they may never be paid for. In personal injury law, lawyers are often working to get a client money to recover from property damage, injuries, and pain and suffering. Often the plaintiff needs money to return to their lives to normal. Many plaintiffs are suffering because of medical expenses, lost wages and need money for repairs to property damage, such as a wrecked vehicle.
Meanwhile, personal injury cases are typically complex. These cases take a long time and demand a lot of work – and this can be difficult for injured people to afford if they are pursuing a claim. The contingency fee system also helps clients in cases against wealthy opponents or large corporations, such as insurance companies. With a contingency fee agreement, clients who have been injured don’t have to pay an attorney up-front for representation. A big corporation with deep resources could potentially draw out the process in a personal injury lawsuit and use time to their advantage.
A contingency fee agreement is agreed upon between the law firm or lawyer and the plaintiff. With a contingency contract, a lawyer conducts the litigation either entirely or partly at his or her expense, depending on the agreement. The lawyer is paid only if he or she is successful in obtaining recovery for the plaintiff, so your interests are closely bound together. A contingency fee is the percentage of the amount you win in your case. If the case is lost, there is no fee for your lawyer.
How much does it cost to hire a personal injury lawyer?
In most cases, there are no upfront fees when hiring a personal injury attorney. The law firm you choose to handle your case will not be paid until you are. Contingency fees make hiring a personal injury attorney easier and affordable for any budget. If you have been injured or have been in an accident, it can be important to the true value of your case to talk to an experienced lawyer and gain an understanding of the actual value of your case, rather than hastily accepting a settlement.
When you hire an attorney, we encourage you to get the contingency fee agreement in writing. This determines how much your attorney fees will be. In some cases, if a lawyer charges hourly, the expenses will be factored by the total amount of hours your attorney puts into the case. In a contingent fee system, the lawyer takes out a percentage of the settlement or verdict after you are awarded compensation.
An experienced personal injury lawyer will help your case
We have helped the injured and disabled in Louisiana for over 60 years, representing car accident victims in New Iberia, Lafayette, Baton Rouge, Morgan City, Alexandria, Breaux Bridge, New Orleans and communities throughout the state. We can help you with a car accident claim, truck accident, workplace accident or assist with any type of personal injury claim.
Let us start the process of pursuing full and just compensation for your injuries. Call us or schedule a time for a free consultation about your case. We offer free and confidential consultations. We handle car accident cases on a contingency fee basis.