The custom dictates that in the case of the provision of legal services, personal injury lawyers in most cases receive compensation for providing the services they offer to their clients and for the work they do in the course of the legal process.
The only exception to this case law (which, it must be said, is quite infrequent) is in “pro bono” cases, in which the attorney agrees to work for free on the case.
The personal injury attorney should be able to estimate to his client the expenses that will have to be incurred, both for his own fee, as well as estimation for the costs to be incurred during the legal proceedings (which may, in some cases, let the final invoice rise).
It is not unusual for some personal injury attorneys to offer their services on a “contingency fee” basis when facing personal injury lawsuits.
In these cases, the lawyer’s fees will then be deducted from the agreement that will be reached at the end of the case (or from the compensation for damage that is established by a judge’s sentence, if it comes to trial).
When the lawyer agrees to work on the case on these terms, if the client finally fails to obtain monetary compensation, he will not be entitled to claim any compensation from his client.
If you have unfortunately suffered an accident that caused you serious injuries, such as fractures, spinal injuries or other types of injuries with serious consequences for your health, you may want to know how much a personal injury lawyer will cost.
Here’s what you need to know if you want to find out how much do personal injury attorneys charge.
Contingency fee agreement: how it works and what is the standard contingency fee percentages
As mentioned above, in a contingency fee agreement, the client is not required to pay their attorney’s fee immediately. So, how personal injury lawyers get paid?
Compensation typically comes in the form of a settlement that is entered into between the parties prior to the trial or a sentence handed down by the judge.
Most personal injury lawyers agree to be paid this way, knowing that the payment of their fees will depend on the outcome of the case. So, with a contingency fee arrangement, the lawyer accepts the risk of not collecting any compensation, should the case not be resolved positively for his client.
Why does a lawyer accept these conditions to defend his client, in a personal injury case?
The answer is simple: because through this arrangement, a lawyer generally gets 33 percent of the compensation that is set or agreed (often, with the insurance company).
A compensation fee equivalent to one third of the amount agreed is what is agreed between the client and the lawyer in most cases, although some personal injury attorneys may also require a fee of between 25 and 40 percent (however usually negotiable).
This means that if the injured party’s insurance company offers a settlement for $ 100,000, the attorney will receive an average of $ 33,000. It is important to remember that many people are willing to accept this fee as by hiring a personal injury lawyer, it is very likely that the initial settlement offer could be increased.
So it can be said that the two great benefits of hiring a lawyer in personal injury cases are that:
- you will not pay the fee unless you receive financial compensation
- the lawyer will probably be able to increase the initial offer, probably by multiplying the amount by up to two or three times
Now that you know how much do personal injury lawyers make, let’s dig into the details of the contingency agreement. Legal fees, litigation expenses and other costs may also be deducted from the final settlement.
Knowing about these extra costs will give you a better idea of how much personal injury lawyers charge for their services and will allow you to have a better understand of what you could expect to recover.
What are the costs and expenses to expect in a personal injury case?
In most of the personal injury cases, it is common that there will be various additional cost and expenses to be taken into consideration, aside from the contingency fee that is due to the attorney.
These extra costs and expenses are due for various reasons and also can vary greatly, according to the complexity of the case.
Normally, they cover:
- Court filing fees
- Transcripts and trial exhibits
- Expert witness fees
- Depositions
- Medical records and others similar investigations
- Police records
- Other administrative costs, like postage, travel, etc.
As mentioned, costs and expenses really depend on the complexity of the case and can easily get significant if no settlement is reached and it must go to trial.
These expenses are normally covered in advance by the personal injury lawyer as they appear during the dispute and are deducted by the settlement or the sentence.
Let’s take an example. Let’s imagine your personal injury lawyer has reached a settlement for $ 50,000. His contingency fee is 30%, so he’ll be entitled to $ 15,000. In addition, your attorney incurred costs and expenses of an additional $ 5,000. These expenses, as we have previously mentioned, are added to the compensation that you will have to pay to your lawyer, so finally the sum you will collect will be $ 30,000.
You win the settlement: now what?
After the case is closed, it is time to collect your money. It is customary for the settlement check to be sent to the lawyer and not to his client. This ensures that the lawyer is paid for his services and that the costs and incidental expenses are covered.
Once the settlement check has been received, the attorney will contact his client to pass on the difference, once his fees, costs and expenses that have been incurred during the case have been deducted.
Related to this topic, we also have another article in our website that may interest you, as it is about the cost of a social security disability attorney. We invite you to check that article as well, if that’s what you are looking for.
Also, you may be wondering how long do you have to sue for medical malpractice, if that is the case.
I hope this article helped you understand how much do personal injury attorney make from the settlement they obtain for their clients, as well as which are the lawyers’ fees and costs in personal injury cases.
