How Contingency Fees Work in Personal Injury Cases

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This page was written, edited, reviewed & approved by Dustin Lance following our comprehensive editorial guidelines. Dustin Lance, the Founding Partner, has handled many types of personal injury cases and is licensed in Utah and Idaho.

If you have been hurt in an accident and are thinking about filing a personal injury case, you may be wondering how to pay for legal representation. Many personal injury lawyers work on a contingency fee basis, meaning you don’t pay any upfront costs.

Lance Bingham helps you understand how contingency fees work in personal injury cases, so you know exactly what to expect. With a contingency fee arrangement, you can afford legal representation without worrying about legal fees until your case settles. This helps injury victims get the help they need without the financial burden of upfront payment.

What Is a Contingency Fee?

A contingency fee is an arrangement where a lawyer agrees to represent you without charging hourly fees or upfront legal costs.

Instead, the lawyer receives a percentage of the final settlement or court award if you win the case. If you lose, the lawyer doesn’t get paid. This makes it easier for those who may not be able to afford legal representation upfront to still have access to quality legal services.

How Contingency Fees Are Calculated

Type of FeeDescriptionExample
Percentage of SettlementThe lawyer takes a set percentage of the final settlement.If you receive $10,000, and the fee is 30%, the lawyer gets $3,000.
Sliding ScaleThe percentage varies depending on the case's complexity.In a simple case, the fee could be 25%; in a complex case, it may reach 40%.
Additional CostsIn some cases, additional costs such as filing or expert witness fees are added.Any additional expenses are deducted from your settlement.

No Win, No Fee: The Risk for Lawyers

The main risk for lawyers with a contingency fee arrangement is that if the case doesn’t succeed, they don’t get paid. This makes the lawyer highly motivated to work hard for a successful outcome, ensuring the client receives compensation. However, it also means that if you lose, the lawyer will pay out-of-pocket expenses such as filing and expert witness fees.

Advantages of Contingency Fees in Personal Injury Cases

There are many benefits to contingency fees for personal injury cases.

Access to Legal Representation Without Upfront Costs

One of the biggest advantages of contingency fees is that they allow you to pursue legal action without having to worry about upfront costs or hourly billing. This is especially important for accident victims who may be struggling with medical bills or lost wages after the accident.

Lawyers Are Motivated to Maximize Your Compensation

Since the lawyer only gets paid if you win, they are motivated to work hard to get you the maximum compensation. This means they are more likely to go the extra mile to get the best possible settlement or court award.

How Lawyers Determine Their Contingency Fee Percentage

The contingency fee percentage can vary depending on different factors. Here’s how lawyers typically determine their fee:

Complexity of the Case

If the case is complicated and requires expert witnesses or a lengthy trial, the contingency fee might be higher. Personal injury lawyers may charge more for cases that are harder to win or take longer to resolve.

Experience and Reputation of the Lawyer

An experienced lawyer with a strong track record may charge a higher contingency fee because of their ability to achieve a successful outcome. Lawyers with a reputation for winning tough cases may have more confidence in their ability to get you compensation.

Whether the Case Goes to Trial

If your case goes to trial, the contingency fee is often higher because litigation is more time-consuming and costly. If the case settles before trial, the fee may be lower.

What Happens if You Don’t Win the Case?

If your case doesn’t result in compensation, you don’t have to pay the lawyer's fees. However, there may still be other costs you need to cover.

No Legal Fees if You Lose

The great thing about a contingency fee arrangement is that if you don’t win the case, you don’t owe your lawyer any legal fees. This is why it’s known as a no-win, no-fee arrangement.

Other Costs That May Apply Even If You Lose

While you don’t have to pay legal fees if you lose, there may still be other costs, such as filing fees, medical payments, or fees for expert witnesses. These costs may be deducted from any potential settlement, even if you don’t win.

Understanding the Payment Structure of Contingency Fees

Understanding how the contingency fee is paid and structured is important before agreeing to any arrangement.

When Do Lawyers Get Paid?

Lawyers get paid only when you receive compensation. If you win, the fee is usually deducted from the settlement or court award. If the case doesn’t result in compensation, there is no payment due to the lawyer.

Deductions and What You Get After Fees

After the contingency fees are deducted, you’ll receive the remaining settlement or award. Any additional costs, such as filing or expert witness fees, will also be deducted from your final amount.

Common Misconceptions About Contingency Fees

There are a few common myths about contingency fees that might make people hesitant to sign a written contingency fee agreement.

“Contingency Fees Are Only for Big Cases”

While contingency fees are often used in large personal injury cases, they can also be applied to smaller cases, such as car accidents or slip-and-fall injuries. Lawyers work on a contingency fee basis to help people who can’t afford hourly rates for legal services.

“Lawyers Take Too Much of the Settlement”

The contingency fee is usually a percentage of the settlement or court award, but the amount is often fair for both the client and the lawyer. Most lawyers aim to keep fees reasonable, and the more the case is worth, the harder they work to achieve the best possible outcome for the client.

How to Choose the Right Lawyer with a Contingency Fee Agreement

Choosing a skilled personal injury lawyer is a big decision, especially when agreeing to a contingency fee arrangement. Here's how to ensure you’re working with the right lawyer:

Research the Lawyer’s Experience in Personal Injury Law

When choosing a lawyer, ensure they specialize in personal injury law. A lawyer with experience will be equipped to pursue legal claims effectively and provide quality legal representation. They will also help manage legal matters and advise on the best course of action.

Understand the Attorney Fees and Payment Structure

Before committing to a contingency fee agreement, make sure you fully understand the attorney fees and how they are calculated. Transparency in attorney fees ensures there are no surprises, and you can make informed decisions about how to proceed with your legal matters.

Evaluate the Lawyer’s Success in Handling Similar Cases

A strong track record of success in personal injury law is crucial. The lawyer should have experience in cases similar to yours and a proven ability to pursue legal claims and deliver quality legal representation that aligns with your goals and needs.

Ensure You Have Ongoing Access to Legal Representation

You should have access to legal representation throughout the legal process. A dedicated lawyer will be there to guide you through legal matters, update you on case progress, and ensure that your personal injury law case is handled with care and attention.

Frequently Asked Questions (FAQs)

How are contingency fees calculated?

Contingency fees are typically a percentage of your settlement or court award. This percentage can vary depending on the case’s complexity.

Do I need to pay anything upfront with a contingency fee?

No, with a contingency fee arrangement, you don’t pay anything upfront. The lawyer is paid only if you win the case.

What happens if I don’t win my case?

If you don’t win, you don’t have to pay the lawyer’s fees. However, you may still be responsible for some costs, like filing fees.

How do contingency fees benefit clients?

Contingency fees benefit clients by eliminating the need for upfront costs. Clients don’t pay unless they win, making legal representation more accessible.

What does a contingency fee mean in a wrongful death case?

In a wrongful death case, a contingency fee means the lawyer is paid a percentage of the settlement or court award only if the case is successful, allowing family members to pursue compensation without upfront costs.

Are there additional fees besides the contingency fee?

Yes, there may be additional fees, such as filing fees, medical record costs, or expert witness charges. These fees are often deducted from the final settlement.

How does the payment arrangement work in a contingency fee case?

The lawyer receives their percentage of the settlement or court award only after the case proceeds, and you win. No upfront payment is required, and clients are responsible only for attorney fees if they succeed.

Can a contingency fee be lower in certain cases?

Yes, lawyers may offer a lower percentage for cases that are easier to resolve, or when clients don’t have the financial risk of a more complex case.

Contact Our Utah Personal Injury Lawyer for a Free Consultation

If you’ve been injured in an accident, don’t let concerns about upfront costs stop you from getting the legal help you need. Lance Bingham law firm offers free consultations to discuss your personal injury case and the contingency fee arrangement. We make it easy for you to recover compensation with no upfront financial burden.

Our experienced personal injury lawyers will fight for the full and fair compensation you deserve. With no upfront payment required, we provide legal representation on a contingency fee basis, so you can focus on recovering. At the same time, we handle the legal process and help you seek justice.

Contact our office today to start your claim and get the help you need. We’re here to guide you every step of the way.

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