Accidents, by definition, are things that happen unexpectedly. As a result, an injured victim cannot prepare for the medical bills and loss of income that may result from the accident they’ve been in. Moreover, their saved resources will be spent on their immediate health needs and living expenses, all before they even consider their potential legal fees.
To address that inescapable fact and accommodate the injured client’s financial limitations, personal injury attorneys charge contingency fees.
Legal Billing Structures
In general, lawyers’ fees usually take one of three forms. First, there are flat fees, which give clients the greatest control over their budget. These fees typically cover discrete projects that require a known or fixed amount of work. For instance, a lawyer might charge a flat fee to fight a parking ticket or form a corporation.
Next, there are hourly fees, which give clients the greatest flexibility in choosing lawyers. The issue with these, however, is that the budget can quickly spiral out of control. Lawyers usually charge hourly fees for cases with indefinite work, like a lawsuit or contract negotiation.
Injury attorneys typically do not charge hourly fees or flat fees. Instead, they usually charge contingency fees. As their name suggests, these payments are contingent on a future event, namely, whether the lawyer recovers compensation for the client.
The lawyer will receive a percentage of the money recovered through a settlement or court award. That amount will vary depending on the following factors:
- The lawyer’s skill and experience
- The case’s complexity
- The likelihood that the lawyer must turn down other work while working on the case
If the lawyer is unable to recover anything during the case, the client does not pay anything in legal fees.
Contingency Fee Benefits
Contingency fees provide several notable benefits to clients. For one, they allow injury clients to access high-quality legal representation even if they have little or no money with which to pay upfront costs. Moreover, their lawyers can get to work immediately, as they’ll only look to collect their fees at the end of the case.
Additionally, lawyers are careful to only accept contingency fee cases they believe they can win or settle. For example, before taking a car accident case, they will review the medical records and accident report to assess the strength and value of your claim. You’ll know you have a fairly solid case when a lawyer offers to represent you for a contingency fee.
Many clients believe that lawyers are more motivated to fight for maximum compensation when they have a stake in the outcome. However, lawyers have an ethical duty to provide objective advice. They also owe the client a fiduciary duty requiring the lawyer to put the client’s interests ahead of theirs.
As a result, lawyers must always fight for the best possible outcome regardless of their fee arrangement with their clients. They must also advise them when to take a settlement rather than risking it all to fight for more.
Services Rendered For A Contingency Fee
A contingency fee typically covers all of the services rendered by the lawyer from the beginning of the case through trial. Thus, the following services are usually included in a contingency fee arrangement:
- All meetings and communications, whether by phone, text, or email
- Investigating the accident
- Collecting evidence for the case
- Preparing the insurance claim
- Negotiating with the insurer to settle the claim without a lawsuit
- Drafting a complaint to initiate a lawsuit if settlement terms cannot be reached
- Recovering evidence from the other party
- Defending your deposition
- Filing motions to determine the issues and evidence available at trial
- Presenting evidence to a jury and advocating for a fair court award
Despite all of these inclusions, a contingency fee does not cover any expenses incurred on your behalf. Specifically, your lawyer will usually be required to pay certain costs during your case, such as the following, to minimize delays:
- Court filing fees
- Expert witness fees
- Deposition expenses, including court reporter fees
- Charges by your doctor for medical records
You must reimburse your attorney for these expenditures at the end of the case. You will usually do so through the settlement or court award you receive. However, you should ask your lawyer how they handle these case expenses if they fail to recover compensation.
How To Hire A Contingency Fee Attorney
Alabama requires that contingency fee agreements be in writing. When you find a lawyer you want to hire, ask to review their fee agreement and raise any questions that come to mind before signing it. In particular, ensure you understand the percentage you will pay, how the fee is calculated, and the sections that explain how other costs are reimbursed.
Contingency Fees And Your Claim
Contingency fees provide injury clients access to high-quality legal representation for no upfront cost. They also allow lawyers to work diligently on injury cases, knowing they will be compensated when they produce positive outcomes. To learn more about the intricacies of contingency fees, it’s best to reach out to a lawyer directly.
Contact a Birmingham personal injury lawyer at Belt, Bruner & Barnett Personal Injury Lawyers at
(205) 206-5088 today to schedule a free consultation and discuss your case and legal options.