Private lawyers charge for legal services, though the way they receive payment is most often based on their clients’ needs and situations. The typical billing structures used by lawyers include hourly, flat, and contingency fees.
When lawyers charge hourly fees, they track their time working on a case and bill the client accordingly. The client pays the fee whether they win or lose. Flat fees are generally reserved for projects with a predictable amount of work, like writing a will. Like hourly fees, flat fees must be paid whether the lawyer wins or loses.
Injury lawyers typically do not charge hourly because many accident victims do not have the money to pay legal bills during the case. Similarly, they often do not charge flat fees because they cannot predict the amount of work an injury case might require. Instead, injury attorneys prefer to charge contingency fees.
Characteristics of Contingency Fees
The defining aspects of a contingency fee are that it is paid at the end of a case and that the outcome produced by the lawyer determines its applicability. The client pays the fee if the lawyer wins or settles the case. The client generally does not owe attorney’s fees if the lawyer does not recover compensation on their behalf.
The fee itself is generally an agreed-upon percentage of the compensation recovered in a settlement or court judgment. Sometimes, a lawyer may charge a different rate depending on when the case ends.
For example, suppose that you hire an Austin car accident lawyer. If your lawyer resolves the case during the insurance claim, you’ll pay them a percentage of the total settlement amount. If the insurer refuses to settle and your lawyer must file a lawsuit, you may pay a higher rate because of the additional work involved.
Benefits of a Contingency Fee
A contingency fee has many benefits for injured clients. Many need to conserve their cash for medical care, and they might not be able to work unless they recover. As a result, they usually do not have the money to pay an hourly or flat fee. A contingency fee gives these clients access to high-quality legal representation without the need to pay out-of-pocket.
Since a contingency fee is paid at the end of the case, the lawyer can start working without any upfront payment. This allows the client to focus on their recovery rather than worrying about how to pay for legal representation.
Moreover, it allows the client to obtain legal representation without seeking financial assistance from others. For example, if a client suffers a brain injury that permanently prevents them from working, a contingency fee allows a lawyer to take the case without relying on the client’s friends or family members to raise the money to pay for legal services.
Services Covered By Contingency Fees
A contingency fee covers most legal services provided during your personal injury claim, including the following:
- Consultations with the lawyer (in person, by phone, over email, or via text message)
- Investigation of your accident to gather evidence for your case
- Preparation of your insurance claim
- Negotiations with the insurer to settle the case
- Preparation of a lawsuit if the case does not settle
- Litigation of the case, including conducting discovery to gather more evidence
- Presentation of your evidence to a jury at trial
Depending on the fee agreement, case costs may be handled separately from attorney’s fees. These expenses can include:
- Court filing fees
- Charges by your doctor for copies of medical records
- Deposition costs, such as court reporter expenses
- Expert witness bills
When you meet with lawyers to discuss your case, ask about fees. Make sure you understand the percentage you will be charged and whether that percentage will change based on the stages of the case.
Hiring a Personal Injury Lawyer on Contingency
Once you choose a lawyer, review their fee agreement carefully. If you have any questions, it’d be in your best interests to ask them before signing the agreement.
Contact McMinn Law Firm for a Free Initial Consultation
Contingency fees are beneficial to clients because they can access legal representation without any upfront costs. If you’ve been injured in a car accident or other incident, contact McMinn Law Firm for a free consultation to discuss how contingency fees work and how they can benefit you. Call (512) 474-0222 today.