Introduction
When you have been injured in an accident caused by the negligence ofâanother 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 lawyerâwill take from the settlement. Most personal injury lawyers only charge you if they win, as they work on a contingency feeâbasis. So how much do theyâactually take? Knowledge of what this percentage isâand the factors affecting it allow you to make an educated decision regarding hiring a lawyer.
What YouâNeed to Know About Contingency Fees
While charging hourly or flat fees,âmost personal injury lawyers work on a contingency fee basis. This means their payment depends onâyour case being successful. If you win (or settle the case), the lawyer receives a percentageâof the award. If you lose, you generally donât end up owing themâanything. This model allows legal services to beâavailable for those who cannot afford cost upfront lawyers.
Typical Percentage LawyersâTake
Typically, personalâinjury lawyers will take somewhere around 30% to 40% of our settlement. The standard agreementâis 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 $100,000âand 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%âdue to all the added legal work necessary.
Howâthe Lawyerâs Percentage Can Be Impacted
A lawyerâs cut from aâsettlement depends on several factors. One of the biggest isâwhether 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 requireâlitigation and going to trial may incur a higher percentage.
Another is the jurisdictionâof the case. Inâsome states, there are limits to contingency fees, which means lawyers can take only so much. The lawyerâs track record and reputation also factor in; well-seasoned attorneys withâa high success rate may take a higher percentage.
Additional Costs and Expenses
There are potential extra costsâthat might apply to your case outside of the contingency fee. These may be mistakes such as there are filing fees, expert witness fees, medical recordâretrieval, depositions, national service process fees, and other costs. Some lawyersâdeduct these costs from the settlement before they take their percentage, while others deduct them afterward. Itâs importantâthat 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 takingâtheir contingency fee. Which means their 33 percent cut would be from $95,000, rather than the full amountâof the settlement.
Negotiating Lawyer Fees
(Although contingency fees areâoften the norm, there may be room for negotiation. If you have a strong case with obvious liability andâlarge damages, some lawyers might agree to a lower percentage. Likewise, when a handful ofâattorneys want to represent you, you may have the upper hand to ask for a lower rate.
And, itâs always good practice toâtalk 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 avoidsâconfusions further down the line.
WhyâClients Benefit from Contingency Fees
Victims of personal injuryâcan thus benefit from the contingency fee model in the following ways. Lawyers are highly motivated to deliver the best result possible because theyâonly get paid if they win the case. It also does awayâwith the need to pay legal fees upfront, enabling victims to seek justice without financial concerns.
And since lawyers bear the financial risk,âthey are pickier about the cases they handle. In other words, they probably arenât going to be takingâfrivolous 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 likeâthe complexity of the case, legal costs, and settlement negotiation. Butâthis 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 throughâthe legal process with assurance. Before you sign any agreement, you should have a complete understanding of the lawyerâs fees and howâthey will affect your final settlement amount.
