Victims of accidents hesitate to hire a lawyer to handle their case, fearing the fees they have to pay. In reality, victims don’t have to pay a penny till they win their case if they hire a lawyer who works on a contingency fee basis.
You might have seen personal injury lawyers using the phrase “no win, no fee.” This is because they work on a contingency fee basis. Reputed law firms, like Jacoby & Meyers, LLP, prefer to work on contingency fee terms because it allows victims to seek justice regardless of their financial situation.
So, you can hire a lawyer for your personal injury case without worrying about upfront fees.
Contingency Fee
Lawyers have been using the contingent fee arrangement for a long time now. In a contingency fee arrangement, a lawyer gets paid only if they win the case. The lawyer takes a portion of the settlement, usually 33-45%, as their fee.
Types of Contingency Fee
Lawyers use three different types of contingency fees, which are:
- Fixed percentage contingency fee
- Staged or graduated contingency fee
- Partial contingency fee
Lawyers choose one of these three types, depending on the case.
Fixed Percentage Contingency Fee
A fixed percentage contingency fee arrangement allows the lawyer to collect the same percentage throughout the case. Regardless of whether the case goes to court or not, the lawyer will get the same fee.
For example, a lawyer charges 35% of the settlement as their fee for car accident cases. In a fixed percentage contingency fee arrangement, the lawyer will get that percentage, even if the opposition agrees to settlement immediately. In short, this applies to the whole case.
Staged or Graduated Contingency Fee
A staged or graduated contingency fee arrangement allows the lawyer to change their fee depending on which stage the case gets resolved. In this type, the fee might change for cases that go to court and cases that get settled out of court.
For example, a slip and fall accident victim files a case and agrees on a 20% fee if the case gets settled out of court and 40% if the case goes to court. Now, the case gets settled outside the court, so the lawyer will get only 20% as their fee since that is what they agreed to.
Partial Contingency Fee
A partial contingency fee arrangement is a bit more complicated than the other two. In this arrangement, the client has to pay upfront costs in addition to the agreed contingency fee. Lawyers use this fee arrangement for high-risk cases where they are not sure of winning. This is a kind of safety net for personal injury lawyers in high-risk cases.
When a Contingency Fee Arrangement is Applicable
The contingency fee arrangement is applicable in the following cases:
- All types of personal injury cases
- Breach of contract cases
You cannot apply the contingency fee arrangement for the following case types:
- Criminal cases
- Divorce cases
- Other family court related cases
Benefits of the Contingency Fee arrangement
- Increase access to justice
- No upfront costs
- A greater incentive for the lawyer’s hard work
- No consequences if the case is lost (For the client)
- Motivates lawyers
Final Thoughts
Due to a lack of knowledge of lawyers’ fee structure, many victims deal with personal injury cases individually. This leads to unfair compensation. Around 49% of people who don’t hire a lawyer get unfair compensation. Lawyers can boost your chances of getting fair compensation. You don’t have to worry about their fees since they work on a contingency fee arrangement. All you have to worry about is your health.
Hire a personal injury lawyer and focus on your recovery. They will get you the compensation you deserve.
