Setareh Law
November 6, 2024
Many accident victims fear hiring an attorney because of the cost. After all, they’re most likely facing large medical bills or lost wages, so they may not be able to afford one. Most people don’t realize that, unlike criminal defense attorneys who have a set hourly rate, most personal injury lawyers use a contingency fee to charge their clients. Attorney fees are typically separate from other legal expenses and are only paid if the case is won.
Contingency fees allow those who might not be able to afford an attorney a chance to pursue fair and just compensation for their injuries without added monthly bills. That said, there are some things you should know about contingency fees before you hire an attorney.
What Are Contingency Fees?
By definition, a contingency fee is a payment for services provided where the client only pays the cost if there is a favorable outcome. Whether your case settles in or out of court, payments are contingent upon winning the case. This will be a certain percentage of your compensation, which is determined by several factors. Contingency fee agreements are crucial in establishing a fair payment structure between lawyers and clients, ensuring attorneys only get paid upon securing compensation for the client and protecting the client’s financial interests.
How Do Attorneys Calculate Contingency Fees?
While injuries vary from person to person, the basic estimation of a lawyer’s fee is generally uniform across the board. The lawyer’s fee is contingent upon winning the case or obtaining a settlement and may cover an attorney’s costs, which are deducted from a final settlement. Generally, personal injury claims become more expensive the longer they take to settle. Some expenses that contingency fees cover may include:
Filing and Court Fees
Going to court isn’t free. State and federal courts require a fee to file a case, but a personal injury attorney generally covers the cost, including court filing fees, and deducts it from the settlement. Bear in mind that courts charge for everything: filing, copying, and postage. So, these costs add up quickly.
Discovery
Discoveries in court cases can be a lengthy and expensive process. Discovery may also require witnesses to testify in a deposition, and they must be paid to do so. There are typically a few depositions in personal injury cases. Expert witness fees are separate and must be paid regardless of the case outcome.
Documents
To prove certain aspects of your injury, such as doctor’s visits and medical procedures, your attorney will have to gather documentation. Obtaining medical records and other documents can cost hundreds of dollars, whether through requests or issuing subpoenas.
Expert Witness Fees
Your attorney may also bring expert witnesses to testify if the case goes to court. They’re brought in to give their opinion on the issue at hand, and the court often relies on their opinion to cast judgment. While expert witnesses might help you win the case, they may charge a few hundred dollars per hour for deposition appearances and providing trial testimony. Hiring a contingency fee lawyer can be advantageous as you do not have to pay upfront costs and only pay if the lawyer wins your case.
Factors Influencing Fee Percentage
Several factors can influence the contingency fee percentage in a personal injury case. The complexity of the case is a significant determinant; more intricate cases that require extensive research, expert testimony, and prolonged litigation may warrant a higher contingency fee percentage. Additionally, the likelihood of winning plays a crucial role. Cases with a higher probability of success might have a lower contingency fee percentage, as the attorney is more confident in securing a favorable outcome.
The amount of work required is another critical factor. Cases demanding significant time, effort, and resources may have a higher contingency fee percentage to reflect the attorney’s increased investment. Lastly, the case’s overall value can impact the fee percentage. Cases with higher potential damages may see a higher contingency fee percentage as the attorney’s potential earnings are greater. Understanding these factors can help clients set realistic expectations when entering into a contingency fee agreement.
Typical Percentage Ranges
In California, contingency fees for personal injury cases generally range from 33% to 40% of the recovered amount. However, these percentages can vary based on several factors, including the case’s complexity, the attorney’s experience, and the case’s risk level. For instance, more complex cases that proceed to trial may see higher percentages due to the increased workload and risk for the attorney. It’s essential for clients to discuss these details with their attorney to understand how the specific circumstances of their case might influence the contingency fee percentage.
Contingency Fee Arrangements
Contingency fee arrangements are a common payment structure in personal injury law. Under this arrangement, the attorney’s fee is contingent upon the successful resolution of the client’s case. This means that if the case is not successful, the attorney does not receive a fee. Contingency fee arrangements are particularly beneficial for clients who may not have the financial means to pay upfront for legal services. This structure allows clients to pursue justice and compensation without the burden of immediate legal fees, making legal representation more accessible to those in need.
Advantages of Contingency Fees
There are many advantages to contingency fees. Aside from offering low-income individuals a chance at legal services, attorneys typically won’t charge you if you lose the case. This does vary by attorney and by case. Consider that a contingency fee lawyer will be incentivized to work harder on a case where they will only be paid if the outcome is favorable.
Fee Agreements and Payment
A fee agreement is a contract between an attorney and a client that sets forth the attorney’s fees for representing the client. In a contingency fee arrangement, the fee agreement should clearly outline the contingency fee percentage, how the fee is determined, and how expenses are deducted. The agreement should also specify how the attorney’s fee is paid, including whether the fee is deducted from the settlement or judgment before or after expenses are reimbursed.
Upon a successful case resolution, the attorney receives their fee as a percentage of the settlement or judgment. The exact method of calculation should be transparent and agreed upon at the start of the attorney-client relationship. Clients should discuss legal fees with their attorney at the outset of their case to ensure transparency and set realistic expectations for the financial aspects of their case. This clarity helps build trust and ensures that both parties are on the same page regarding the financial terms of the legal representation.
What Happens If I Switch Attorneys During the Case?
If you switch attorneys or decide to represent yourself, your former attorney will most likely put a lien on any financial earnings you receive from the case. A lien is someone’s legal right to take part in the settlement proceeds from your compensation.
Keep in mind that most attorneys will have you sign an agreement before working on your case. Read over the contract carefully before switching attorneys, as you may be obligated to pay for work that’s already been completed. It is also crucial to understand contingency fee agreements, as these ensure attorneys only get paid upon securing compensation for you, protecting your financial interests.
Skilled Personal Injury Attorney in California
If your injuries result from another party’s negligence, you have a right to seek compensation. The best way to receive fair and just compensation for your injuries is to speak with an attorney skilled in California personal injury law. Attorney fees are typically separate from other legal expenses and are only paid if the case is won.
At Setareh Law, our team of legal experts is dedicated to representing accident victims. We have a proven track record of getting the justice our clients deserve. Call (310) 659-1826 or complete an online contact form to get in touch with one of our attorneys today.
