What is a Contingency Fee Pay Structure?
Most personal injury lawyers offer contingency fee arrangements, which are contracts between lawyers and their clients. With a contingency fee arrangement, if a client’s case is won, their attorney will subtract a percentage of the settlement or award to cover the cost of legal fees. If a case is not successful, the accident victim owes nothing. Additionally, with this type of payment arrangement, the client does not have to worry about paying any upfront costs, which allows them to obtain legal representation as soon as possible after an accident.
What Are the Benefits of a Contingency Fee Arrangement?
Hiring a personal injury lawyer is one of the smartest moves you can make following an accident. Because most personal injury lawyers work on a contingency fee basis, an accident victim can hire an experienced, knowledgeable attorney early on in the claims process.
With a contingency fee pay structure, you can expect:
No Up-Front Costs
Without any upfront costs, an accident victim can hire a personal injury lawyer as soon as possible after an accident. A contingency fee pay structure allows an accident victim to hire an attorney when they would otherwise not be able to afford it.
Motivation to Recover Maximum Compensation
A personal injury lawyer who works on a contingency fee basis will have an incentive to recover maximum compensation for their clients.
No Financial Risk
If a client’s case is not won, the accident victim won’t have to worry about owing their lawyer legal fees.
How Are Contingency Fees Calculated?
As mentioned earlier, most personal injury lawyers will only take 33-40% of the settlement or award.
The percentage an attorney charges can vary depending on the attorney’s experience, the complexity of the case, and the strength of the case.
At the Ben Dominguez Law Firm, we can discuss how the contingency fee arrangement works, what happens if your case is not successful, and agree upon the percentage we will subtract from your settlement, before the case begins.
