Hiring a personal injury lawyer may seem financially difficult when you are already dealing with medical bills, lost income, and other expenses after an accident. However, many personal injury attorneys work on a contingency fee basis, which generally means you do not pay attorney’s fees upfront.
Instead, the lawyer’s fee is contingent on recovering compensation for you. If the case results in a settlement or verdict, the attorney receives an agreed-upon percentage of the recovery. If there is no recovery, you generally do not owe an attorney’s fee, although responsibility for case-related costs can depend on the fee agreement.
Understanding how contingency fees work can help you make an informed decision before hiring a personal injury lawyer.
What Is a Contingency Fee?
A contingency fee is a payment arrangement in which an attorney’s fee depends on the outcome of a case. Rather than charging an hourly rate or requiring a large retainer, the lawyer agrees to receive a percentage of the compensation recovered for the client.
For example, if an attorney and client agree to a contingency fee and the case settles successfully, the attorney’s fee is calculated from the settlement according to the terms of their agreement.
The exact percentage can vary based on the attorney, type of claim, complexity of the case, and applicable state rules.
How Does a Contingency Fee Work in a Personal Injury Case?
When you hire a personal injury attorney on a contingency fee basis, you typically sign a written agreement explaining how the attorney will be paid.
The lawyer can then begin working on your claim without requiring you to pay attorney’s fees as the case progresses. Depending on the circumstances, this work may include investigating the accident, gathering evidence, communicating with insurance companies, negotiating a settlement, and preparing the case for trial.
If compensation is recovered, the attorney’s fee is generally deducted from the recovery according to the agreement. The remaining funds are distributed after applicable case expenses, medical liens, or other obligations are addressed.
What Percentage Do Personal Injury Lawyers Charge?
There is no single contingency fee percentage that applies to every personal injury case. The percentage may vary depending on the lawyer, jurisdiction, case type, and stage at which the claim is resolved.
Some agreements also use different percentages depending on how far the case progresses. For example, the percentage could change if a lawsuit must be filed or the case proceeds to trial.
Before hiring an attorney, review the contingency fee agreement carefully. It should explain how the fee is calculated and whether the percentage can change during the case.
Do I Have to Pay Anything Upfront?
One of the primary advantages of a contingency fee arrangement is that clients generally do not have to pay attorney’s fees upfront. This allows someone who has been injured to obtain legal representation without having to fund hourly legal bills while recovering from an accident.
However, attorney’s fees and case expenses are not necessarily the same thing. Your agreement should explain whether you could be responsible for any costs associated with pursuing the claim.
Ask questions about anything you do not understand before signing the agreement.
What Costs Can Arise During a Personal Injury Case?
Personal injury cases can involve expenses beyond an attorney’s professional fee. The amount and type of expenses depend on the complexity of the claim and how far the case progresses.
Common case-related costs may include:
- Court filing fees
- Medical record fees
- Police or accident report fees
- Deposition expenses
- Expert witness fees
- Investigation costs
- Costs associated with obtaining records or evidence
- Trial exhibits and other litigation expenses
The contingency fee agreement should explain how these expenses are handled. It should also state whether costs are deducted before or after the attorney’s percentage is calculated and whether the client may owe costs if there is no recovery.
What Happens If I Lose My Personal Injury Case?
Under a typical contingency fee arrangement, you generally do not owe an attorney’s fee if the lawyer does not recover compensation for you. This shifts some of the financial risk of pursuing a claim from the client to the attorney.
However, you should not automatically assume that you will owe nothing at all if the case is unsuccessful. Depending on the agreement and applicable law, you may still have responsibility for certain expenses.
Before hiring a lawyer, ask what happens to case costs if your claim does not result in a settlement or verdict.
What Are the Benefits of a Contingency Fee?
Contingency fees can make legal representation more accessible to people who could not afford to pay an attorney by the hour.
Potential benefits include:
- No upfront attorney’s fees: You generally do not need to pay a retainer to begin your case.
- Payment depends on recovery: The attorney generally receives a fee only when compensation is recovered.
- Access to legal representation: You can pursue a claim even if you cannot afford substantial legal fees upfront.
- Aligned financial interests: Both you and your attorney have an interest in obtaining a favorable financial result.
- Less financial pressure during the case: You generally do not receive ongoing hourly bills for your attorney’s work.
These arrangements can be particularly helpful after a serious injury has disrupted your income or created unexpected expenses.
Contact an Ohio Personal Injury Lawyer at the Law Office of Michael J. Tremoulis for a Free Consultation
A contingency fee arrangement can allow you to pursue a personal injury claim without paying attorney’s fees upfront. If compensation is recovered, the lawyer is generally paid an agreed-upon percentage of the settlement or verdict.
A free consultation can give you an opportunity to discuss your claim, learn about your legal options, and ask questions about contingency fees and costs before deciding how to proceed. Contact the Law Office of Michael J. Tremoulis today.
