Contingency Fee Advantages and Limitations
Personal injury attorneys generally handle cases involving vehicle collisions, boating accidents, and work-related injuries. Most personal injury lawyers don’t charge by the hour for their time. You may be aware that personal injury attorneys aren’t paid unless you win your case. This form of compensation is known as a contingency fee arrangement, and contingency fees are common in personal injury litigation. They’re called contingency fees because they are contingent upon the outcome of the case.
Contingency Fee Advantages
Many people cannot afford to pay upfront retainer fees to hire a lawyer. Contingency fees give injured individuals who are not wealthy a fighting chance against large insurance companies with deep pockets. Contingency fee agreements are popular, since they allow an injured party to attempt recovery of their damages without having to pay attorney’s fees upfront. These fees will only be paid if the attorney recovers damages or obtains a settlement on behalf of his client. However, contingency fees don’t cover all of the expenses associated with your personal injury case.
Contingency Fee Agreements
The law firm’s compensation is detailed in a contract known as a fee agreement, which you’ll need to sign. By law, your attorney must tell you how his fee is earned, but you’re obligated to review and understand the fee agreement prior to signing it. In addition to contingency fees, your attorney may incur out-of-pocket expenses related to your case. You will reimburse him for these costs once your case settles. These expenses may include:
- The cost of hiring expert witnesses.
- Court filing fees.
- Postage and courier services.
- Long distance phone charges.
- Copying fees.
- Service of process fees.
- Equipment rental, meeting space, and transcription fees for depositions.
You Need an Attorney
If you’ve been injured in an accident, you deserve compensation. Contingency fees make seeking justice more accessible and affordable, allowing you to avoid upfront legal fees. To discuss your claim, contact the law offices of Steve M. Lee, P.C., by using the form on this page.