Personal injury law in the United States covers a wide array of accidents, including car accidents, workplace injuries, and assault. The number of emergency room visits, according to the CDC, stands at 40 million (in 2021).
It is, therefore, highly likely that most people in the US will need the services of a personal injury lawyer at some point in their lives. You should know the cost of hiring an attorney in a personal injury case in order to be well prepared for such instances.
In this article, we will focus on the benefits of hiring a lawyer on a contingency fee basis, as this type of payment is pretty common.
What is a contingency fee?
A contingency fee is when the lawyer receives a percentage of the winnings from a case instead of being paid upfront for their services. The winnings refer to any compensation the client receives from the conclusion of the case.
Typically, the percentage is around 30-40% of the settlement the client receives, but this can vary depending on the complexity of the case and other factors. For example, a lawyer may be paid more if the case goes to trial.
Benefits of hiring a lawyer on a contingency fee
A contingency fee gives clients several benefits. Here are a few of them:
Financial buffer
The first major benefit of a contingency fee is that it gives clients a sort of financial buffer because they don’t have to pay anything upfront. The lawyer gets paid only if they win the case, so the client doesn’t have to spend anything out of pocket and only has to share a portion of their compensation.
High success rate
Lawyers do not take on cases with a low success rate on a contingency fee basis. This means that the chance of winning compensation is high. Only lawyers with experience in this area of law will take on these cases, giving you access to pros in the field.
Motivates lawyer
A contingency fee can also serve as a motivating factor for lawyers because they don’t get paid unless they win the case. Also, the lawyer only gets a portion of your compensation, so the higher your compensation, the higher their cut – this could serve as an additional motivator for them to fight for the highest possible compensation for your case.
Note: Other costs
It is important to note that in addition to the contingency fee, you may be asked to pay for other costs that arise during the course of the case, including the cost of submitting documents, hiring experts, and obtaining records related to the case.
Other fee structures
There are several other fee structures that lawyers in the US use, like a flat fee, hourly rate, or retainer fee. Here are a few of them:
Hourly fee
Some lawyers charge an hourly fee, meaning you are to pay them for every hour they work. Different law firms charge different hourly rates, which can also vary based on the kind of work they do.
Retainer fee
A retainer fee is a flat fee that you pay the lawyer upfront for their services. This money goes into an account and will be used for any costs related to your case. The fee can be based on the lawyer’s hourly rate, which means that the lawyer is available to serve you for a set period.
Conclusion
In conclusion, a contingency fee arrangement can benefit clients in several ways. While there are other fee structures that can be discussed with a lawyer, a contingency fee gives clients a chance to hire legal professionals at an affordable rate.
If you ever find yourself in a position where you need to hire a personal injury lawyer, be sure to look into contingency fee payments, as they can be free of financial burden.
