Contingency Fees Explained: How Personal Injury Lawyers Get Paid
If you’ve been hurt in an accident and are thinking about filing a lawsuit, you may be wondering how you’ll pay for a lawyer. The good news is that most personal injury lawyers operate on a contingency fee basis, which means their clients can seek compensation without paying the initial cost of hiring a lawyer. So, what exactly does that mean? Here’s how contingency fees work and what you need to know before you hire a personal injury lawyer.
What Is a Contingency Fee?
A contingency fee is an arrangement for payment in which the attorney’s fee is “contingent” on winning your case. That is, the lawyer only receives payment if you win a settlement or court award. If your case is unsuccessful, you usually owe your personal injury attorney in Bakersfield nothing for his or her time and services.
This model is standard in personal injury law because it makes legal representation accessible to people who might not have the financial means to pay hourly or upfront fees. It also aligns the lawyer’s interest with yours: both parties are motivated to win the case and secure the highest possible compensation.
How Much Is the Contingency Fee?
The typical contingency fee in personal injury cases ranges from 33% to 40% of the recovery. The percentage typically varies based on the case’s complexity and whether it proceeds to trial.
33% (One-third) is standard in cases that resolve before a lawsuit is filed.
A rate of 40% or higher may be used if the case proceeds to trial or an appeal.
Here’s how it might play out in real life: let’s say your case gets resolved for $90,000, and your attorney takes a fee of 33%. They’ll make $29,700, and you’ll bring home the balance, $60,300, minus additional expenses (about which see below).
What Does a Contingency Fee Entail?
Contingency fees typically include time spent by the lawyer, counsel, negotiation, and trial appearance. Contingency fees, however, do not necessarily cover case expenses such as:
- Filing costs
- Cost of expert witnesses
- Fees for getting medical records
- Court reporting fees
- Deposition
- Travel cost
Some attorneys advance these expenses and take them out of your settlement afterward, while others will request that you pay as you go. It’s best to get an explanation of how these expenses are being managed before signing a fee agreement.
When Are Contingency Fees Paid?
Contingency fees come directly from your settlement or award from the court and not from your pocket. Once the case has been settled and the funds collected, the lawyer will take the agreed percentage of their share and deduct any related case expenses (if any). You will then get the difference.
What if You Lose Your Case?
If your case is unsuccessful and there’s no recovery, usually in most instances, you will not have to pay your attorney for their time or services. This is one of the primary advantages of a contingency arrangement—it significantly reduces your financial risk.
However, be aware of any out-of-pocket expenses that may still be your responsibility, even if the lawyer doesn’t get paid. Some attorneys might expect reimbursement for certain costs regardless of the case’s outcome. Always request this in writing to avoid any surprises
Why Contingency Fees Benefit Clients
Contingency fee arrangements have several advantages for injury victims:
- No Advance Fees – You don’t pay a retainer or hourly rates to receive legal assistance.
- Incentivized Representation – Because the attorney only receives payment if you win, they have a stake in working to achieve the best result.
- Affordable Legal Assistance – Even those with limited financial resources can still seek justice and compensation.
Questions to Ask Before Signing a Contingency Agreement
Before you hire a personal injury lawyer, here are a few things to ask about their fee arrangement:
- What percentage is your contingency fee?
- Does the percentage rise if the case goes to trial?
- Who pays for case expenses?
- Will I pay anything if we lose?
- Can you offer a written fee agreement?
A reasonable attorney at LA Law Group will clearly explain the agreement and address your questions openly and honestly.
Conclusion
Knowing how contingency fees function will assist you in making smart choices when you hire an injury attorney. Though the prospect of paying a high percentage of your settlement may sound high, keep in mind that a quality lawyer will be able to collect a much higher settlement than you would be able to on your own, far enough to cover their fee and then some.
If you’ve been injured as a result of another’s negligence, don’t let concerns about legal expenses stand in the way. A contingency fee structure may be the solution to securing the justice and compensation you are entitled to, without paying a single dollar up front.
