What Are Contingency Fees for Injury Lawyers?
If you are looking to hire a personal injury lawyer in Pittsburgh after a harmful accident, such as a car crash or slip and fall, it is important to understand how most injury lawyers charge. The most common payment arrangement is “contingency fees.” If a lawyer advertises this payment structure, it means you won’t pay unless you win.
How Does a Contingency Fee Arrangement Work?
Contingency fees are so-called because whether or not the personal injury lawyer charges a fee is contingent upon whether he or she wins the case. With a contingency fee payment arrangement, the client is charged $0 upfront. There is no retainer fee, or upfront amount required to hire the attorney.
The injury lawyer will only charge the client if and when the case has a positive result. If the case does not end in a successful settlement or jury verdict, the amount owed in attorney’s fees will be $0. If the attorney does win the client’s case, the fee will be deducted directly from the amount won – not billed out of the client’s pocket.
Contingency fees are charged as a percentage of the insurance settlement or judgment award achieved on the injured client’s behalf. If an attorney’s services lead to a $500,000 case outcome, for example, and the contingency fee is set at 33 percent, the attorney will take $165,000 of the award as a fee. The rest would go to the client.
What Are the Benefits of Contingency Fees?
Contingency fees are the most popular type of payment arrangement among personal injury lawyers. This payment plan allows all injured accident victims to benefit from high-quality legal representation during their claims, regardless of financial status.
In the aftermath of harmful accidents, victims are often dealing with a large number of bills and expenses. They may not be able to afford to pay an hourly rate or flat fee for legal representation. The solution is a contingency fee.
The main benefit of contingency fees is client protection from any financial risk involved in pursuing the claim. The personal injury lawyer takes on 100 percent of the risk by fronting all of the costs associated with the case.
The attorney will only get paid if his or her efforts succeed in recovering financial compensation for the client. This aligns the attorney’s interest with the client’s and motivates the attorney to get the best possible case results.
What Is the Standard Contingency Fee Percentage in Pennsylvania?
The amount of a contingency fee percentage will vary based on the case and the attorney. A more experienced attorney may charge a higher percentage than one with less experience, for example. The complexity of the personal injury case can also affect the rate, as this will determine how much work the attorney will have to do for the claim. A case that goes to trial may cost more than one that reaches a settlement.
Most attorneys keep their contingency fees at around one-third or 33 percent of the award. However, the percentage can range from 28 to 40 percent. A lawyer who operates on a contingency fee basis in Pennsylvania should always provide the exact amount of the fee upfront, so there are no surprises.
The attorney should explain what is and is not included in the contingency fee payment. Typically, the attorney’s time spent on the case and legal expertise are included, such as time negotiating a settlement with insurance companies or going to trial. Additional costs and fees may not be covered, such as the price of hiring an expert witness.
To discuss contingency fees with an attorney in Pennsylvania in relation to your specific personal injury case, contact Dallas W. Hartman P.C. for a free initial consultation.