Introduction
When you have been injured in an accident caused by the negligence of another party, it can make all the difference to enlist the help of a personal injury lawyer. However, one question clients often have is how much their lawyer will take from the settlement. Most personal injury lawyers only charge you if they win, as they work on a contingency fee basis. So how much do they actually take? Knowledge of what this percentage is and the factors affecting it allow you to make an educated decision regarding hiring a lawyer.
What You Need to Know About Contingency Fees
While charging hourly or flat fees, most personal injury lawyers work on a contingency fee basis. This means their payment depends on your case being successful. If you win (or settle the case), the lawyer receives a percentage of the award. If you lose, you generally don’t end up owing them anything. This model allows legal services to be available for those who cannot afford cost upfront lawyers.
Typical Percentage Lawyers Take
Typically, personal injury lawyers will take somewhere around 30% to 40% of our settlement. The standard agreement is often in the ballpark of 33%, but of course this can vary depending on many factors, including the details of the case, when it is resolved, and the particular agreement a client and lawyer make.
If, for instance, your settlement is $100,000 and your lawyer has a 33 percent contingency fee, that gives them $33,000 and you receive $67,000. If it does go trial, it can be higher to potentially 33% due to all the added legal work necessary.
How the Lawyer’s Percentage Can Be Impacted
A lawyer’s cut from a settlement depends on several factors. One of the biggest is whether the case is resolved before or after a lawsuit is filed. Cases that are resolved early in the process through negotiation typically come with a lower fee percentage, whereas those that require litigation and going to trial may incur a higher percentage.
Another is the jurisdiction of the case. In some states, there are limits to contingency fees, which means lawyers can take only so much. The lawyer’s track record and reputation also factor in; well-seasoned attorneys with a high success rate may take a higher percentage.
Additional Costs and Expenses
There are potential extra costs that might apply to your case outside of the contingency fee. These may be mistakes such as there are filing fees, expert witness fees, medical record retrieval, depositions, national service process fees, and other costs. Some lawyers deduct these costs from the settlement before they take their percentage, while others deduct them afterward. It’s important that you confirm this with your attorney before you get hit with some unexpected deductions.
For example, if you owe $5,000 in goodies in your case and come up with a settlement of $100,000, the lawyer may take the expenses out first, before taking their contingency fee. Which means their 33 percent cut would be from $95,000, rather than the full amount of the settlement.
Negotiating Lawyer Fees
(Although contingency fees are often the norm, there may be room for negotiation. If you have a strong case with obvious liability and large damages, some lawyers might agree to a lower percentage. Likewise, when a handful of attorneys want to represent you, you may have the upper hand to ask for a lower rate.
And, it’s always good practice to talk about fees upfront, and request a written agreement detailing the percentage, extra expenses in addition to that percentage and any other pertinent terms. This guarantees that everything is clear and avoids confusions further down the line.
Why Clients Benefit from Contingency Fees
Victims of personal injury can thus benefit from the contingency fee model in the following ways. Lawyers are highly motivated to deliver the best result possible because they only get paid if they win the case. It also does away with the need to pay legal fees upfront, enabling victims to seek justice without financial concerns.
And since lawyers bear the financial risk, they are pickier about the cases they handle. In other words, they probably aren’t going to be taking frivolous claims and will only take cases that have a solid legal basis.
Conclusion
Personal injury attorneys generally charge between 30% to 40% of a settlement, which varies based on aspects like the complexity of the case, legal costs, and settlement negotiation. But this sounds like a large chunk, and the contingency fee system provides individuals access to legal representation without needing to pay upfront. Knowing how these fees work, what other costs can incur, and how to negotiate terms will empower you to go through the legal process with assurance. Before you sign any agreement, you should have a complete understanding of the lawyer’s fees and how they will affect your final settlement amount.
As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.
