When you’ve suffered an injury in an accident caused by someone else, you have multiple questions and concerns regarding what to do next and your best options. Many accident victims have no experience with legal proceedings and aren’t familiar with how much it costs to hire a lawyer or how lawyers receive payment in personal injury cases.
If you or someone you love has suffered an injury in an accident that resulted from another party’s negligence or wrongful actions, you not only have the right to take legal action to seek compensation, but you owe it to yourself to hold the responsible party accountable. Continue reading below to learn more about the cost of a personal injury lawyer, and contact an experienced Bellingham personal injury attorney today to schedule a consultation.
Understanding the Cost of Personal Injury Cases
Being faced with the reality of filing a personal injury lawsuit can feel overwhelming for many people, mainly when they are already dealing with the physical, mental, emotional, and financial stresses that resulted from their accident. Fortunately, many personal injury attorneys work on a contingency basis, meaning injured clients don’t need to pay upfront. Instead, the lawyer’s fee will be a percentage of whatever settlement amount or award results from the case.
However, It is important to remember that additional costs may arise, including court fees, hiring expert witnesses, and administrative costs. Familiarizing yourself with the different types of payment arrangements.
Types of Fee Arrangements for Personal Injury Lawyers
Understanding the different types of fee arrangements utilized by personal injury lawyers is helpful when hiring legal representation after your accident. In most cases, personal injury attorneys offer flexible payment options to make obtaining legal representation more accessible to people of any financial status.
The most common type of payment structure is the contingency fee, in which plaintiffs can hire an attorney without paying upfront. Some attorneys, however, offer their services for an hourly rate or flat fee, depending on the situation’s specifics. Each payment structure is explored in more detail below.
Contingency Fees
Most commonly, personal injury lawyers work on a contingency fee structure. Under this structure, the attorney’s payment is contingent on reaching a settlement or winning a compensation award via trial, with the fee being an agreed-upon percentage of the compensation amount. In many cases, this percentage ranges anywhere from 25 percent to 40 percent, depending on various factors. Contingency fees present a way for legal services to be accessible to more people and motivate personal injury lawyers to work diligently on behalf of their clients to seek a favorable outcome. When you meet with a prospective personal injury attorney, there is a good chance they will represent you for a contingency fee.
Hourly Rates
An hourly rate is a less common type of payment structure used by some personal injury lawyers. When working on an hourly rate agreement, lawyers will bill clients for the time spent working on the case. This results in significantly higher costs early on in the case and the potential for much greater expenses overall. Though hourly rates are more common in other areas of law, personal injury cases often have uncertain timelines, making hourly rates less conducive and manageable for clients. Although more transparent, hourly billing can become impractical in personal injury cases when long hours of negotiation and research are required.
Flat Fees
A flat fee structure sees the client pay a predetermined amount in a single payment for the attorney’s representation. Due in large part to the inherent complexity and unpredictability of personal injury cases, flat fee arrangements are rare. Flat fee structures are commonly used for smaller, simpler legal matters, such as drafting documentation or filing paperwork. Personal injury cases often involve lengthy investigations, negotiation periods, and unpredictable litigation, making flat fee agreements inadequate to cover the full scope of the work required from the attorney. Containment fee arrangements are more suitable for individuals needing comprehensive legal representation in personal injury cases.
Average Contingency Fee Percentages in Personal Injury Cases
When considering hiring personal injury lawyers as your legal representation, understanding contingency fee percentages is vital. Your lawyer will only receive payment if you reach a settlement or win your case in court. The contingency fee will typically be a percentage of the compensation awarded in the settlement or trial verdict and will serve as payment to your lawyer for their time, effort, and resources spent on your case.
The specific percentage that makes up your attorney’s contingency fee can vary depending on various factors, including the lawyer’s level of experience and the complexity of your case.
Typical Ranges
In many personal injury cases, the contingency fee percentage will fall between 25 percent and 40 percent of the final amount awarded via settlement or trial victory. The percentage frequently varies within that range based on different considerations, including the case’s complexity, the anticipated amount of work that will be required, and the lawyer’s level of experience. Simpler, more straightforward cases may lend themselves to the lower end of the contingency fee percentage scale. In contrast, more complicated cases involving larger or multiple defendants can result in lawyers seeking a higher percentage. Discussing the contingency fee percentage with attorneys before hiring them is a critical aspect of the process.
Adjustments for Settlement Vs. Trial
Some attorneys offer the flexibility to adjust their contingency fee percentage based on whether your case reaches an out-of-court settlement or goes to trial. If your case reaches a resolution through settlement negotiations and avoids going to court, the contingency fee percentage may be adjusted to the lower end, often around 25-35 percent. If your case goes to trial, however, the percentage the attorney will receive usually increases, sometimes reaching 40 percent of the awarded amount. This is due to the increased time and resources required from the lawyer. This adjustable approach can benefit clients who end up paying lower attorney fees following quicker resolutions to their cases.
Other Potential Costs in a Personal Injury Case
Aside from normal attorney fees, other expenses you incur during your personal injury case can noticeably impact the final amount you receive. Such costs, often referred to as case-related expenses, include vital elements needed to build a strong case, such as payment for expert witnesses, court fees, and costs incurred during the gathering of evidence. Though these expenses are not included in your lawyer’s contingency fee, they may be necessary to seek compensation aggressively. Understanding case-related expenses and their role in your case will help you anticipate the additional costs of your case.
Case-Related Expenses
Additional expenses beyond attorney fees may be involved in many personal injury cases. Case-related expenses are often essential to building a compelling case for compensation. Common case-related expenses in personal injury cases include:
- Filing Fees
- Expert Witness Fees
- Investigation Fees
- Medical Record Acquisition
- Administrative Fees
Though specific arrangements may vary, these additional expenses are often deducted from the final compensation amount awarded to you if your case is successful. Discussing these various expenses with your lawyer at the beginning of the legal process can help you better understand what to expect in your case.
How These Costs Are Handled
Different personal injury lawyers handle case-related expenses in various ways. Depending on their payment structure and their firms’ policies, attorneys may advance these expenses on your behalf so that you can focus on your physical recovery without an immediate additional financial hit. After your case, these expenses will then be deducted from the awarded compensation amount. In some instances, however, you may need to cover some expenses upfront. In either situation, clarifying how these expenses are handled with your lawyer is important to avoid any potentially unexpected issues.
Payment Timeline & Process in a Contingency Fee Arrangement
Under many circumstances, contingency fee arrangements in personal injury cases are structured to relieve financial stress on you throughout the case. Under a contingency fee structure, you will only owe legal fees to your attorney if your case results in a favorable outcome.
Avoiding having to pay upfront can be a relief as you work with your lawyer to focus on the pursuit of compensation and postpone payment to the attorney and other case-related expenses until after the case’s conclusion. Being familiar with the timeline involved in the process can be helpful and allow you to feel secure that your financial burden will not grow any heavier in the meantime.
No Payment Required Until Settlement or Verdict
One of the most significant benefits of a contingency fee arrangement is that you will not be required to pay any legal fees until you win compensation through a settlement agreement or victory in court. It means you can see your case through to the end without experiencing additional stress due to mounting legal fees. Removing this financial obstacle allows you to focus on regaining your physical health and working with your lawyer to build the best possible compensation case while motivating your attorney to strive for the best results in your personal injury case.
Understanding What “Net Settlement” Means
One important element to understand in this situation is what is commonly referred to as “net settlement.” This term refers to the final amount you will receive after deducting all legal fees, court costs, and other case-related expenses. When you hire an attorney under a contingency fee agreement, the lawyer’s percentage will be deducted first, followed by any other additional expenses. The remaining balance of the compensation amount awarded to you — the “net settlement” — will be yours to keep.
Pros & Cons of Hiring a Personal Injury Lawyer on a Contingency Basis
While other lawyers offer different payment structures in personal injury cases, hiring an attorney on a contingency fee basis has distinct advantages. There are, however, some potential drawbacks. The pros and cons of hiring a personal injury lawyer on a contingency basis include:
- Pros: There are no upfront costs, easy access to legal representation, and your lawyer is motivated to work diligently for you.
- Cons: Variable settlement percentage, potential for higher costs in longer trials.
Weighing these pros and cons will help determine how working with a lawyer under a contingency fee agreement will work in your favor.
Questions to Ask a Lawyer About Costs Before Hiring
Before hiring a personal injury attorney, there are some questions you should address with them to avoid potential surprises later in the process. Important questions to ask include:
- What is your contingency fee percentage?
- Are there any additional fees?
- How do you handle case-related expenses?
- Do you charge any fees if my case is unsuccessful?
By getting answers to these important questions, you can find the right personal injury attorney to represent you in your case and go into the legal process to understand better what to expect and how the payment of legal fees and other expenses are addressed.
Contact an Experienced Personal Injury Lawyer Today
Christopher C. Walton, Accident Attorney
Understanding more about the cost of hiring a personal injury lawyer to represent you in your case allows you to go into the process with confidence that you will have a solid chance to seek the fair financial compensation you deserve. Knowing what questions to ask prospective attorneys will work in your favor as you look for the right legal representation.
If you have been left injured following an accident caused by someone else, you have the right to take legal action to hold them accountable and seek the compensation you need. Contact a knowledgeable personal injury lawyer today to schedule a consultation and learn more about your legal options.
During a free consultation with a personal injury lawyer, you can expect to discuss the details of your accident and injury, as well as any potential legal options available to you. This initial meeting is an excellent opportunity to ask questions, address concerns, and gain a better understanding of your rights. By reaching out to an experienced personal injury lawyer for a free consultation, you can take the first step towards seeking justice and obtaining the compensation you deserve.