Steven A. Bagen | April 1, 2025 | Personal Injury
For most personal injury cases, hiring a lawyer from our firm costs you nothing out of your own pocket. We use a contingency fee agreement.
This means our fee is a percentage of the money we recover for you. If you don’t get paid, we don’t get paid. It’s that straightforward.
You are likely dealing with mounting medical bills and lost wages; the cost of legal help shouldn’t be another source of stress. The contingency fee system is designed so that anyone can get skilled legal representation, regardless of their financial situation.
If you have questions about your accident and what your case might be worth, call Steven A. Bagen & Associates, P.A. for a free, no-obligation consultation at (800) 800-2575.
What Is a Contingency Fee and How Does It Work for You?
A contingency fee is a payment arrangement where the lawyer’s fee is “contingent” on the outcome of the case. Think of it like this: The law firm invests its time, resources, and knowledge into your case. The firm is paid only if and when you receive a financial settlement or a jury award.
No Win, No Fee
This approach removes the financial risk from your shoulders and places it onto ours. We are confident in our ability to assess the merits of a case before we move forward.
How Is the Percentage Determined?
The percentage is agreed upon at the beginning of your case and is clearly written into the agreement you sign. In Florida, these percentages are regulated by The Florida Bar to ensure fairness for clients.
The amount can sometimes change depending on how far the case progresses. For example, the percentage might be higher if a lawsuit has to be filed and the case proceeds toward trial. This reflects the significant increase in work, time, and resources required for litigation. We will explain this to you in detail before you sign anything.
Why Does This System Exist?
The contingency fee model serves two powerful purposes.
- First, it provides access to justice for everyone, not just those who can afford to pay a lawyer by the hour. An injury can turn your financial life upside down, and this system ensures you can still stand up for your rights.
- Second, it gives your law firm a direct incentive to secure the maximum compensation available for you under the law. Our success is tied directly to your success. We are motivated to pursue every dollar you are rightfully owed because it is how we are compensated for our work.
Are Attorney’s Fees the Only Cost? Understanding Case Expenses
It’s important to be clear about the two types of costs in a legal case: attorney’s fees and case expenses. They are not the same thing.
- Attorney’s Fees: This is what you pay the lawyer for their work and time. Under our contingency agreement, this is the percentage discussed above.
- Case Expenses (or “Costs”): These are the out-of-pocket costs required to build and pursue your case. Our firm typically advances these costs on your behalf, so you still don’t have to pay anything up front. These expenses are then reimbursed to the firm from the settlement or award, separate from the attorney’s fee.
What Do Case Expenses Include?
Building a strong personal injury claim requires gathering evidence and, in some cases, hiring outside professionals to strengthen your position. These necessary costs may include:
- Filing Fees: The costs charged by the court to officially file a lawsuit.
- Expert Witness Fees: Payments to doctors, accident reconstructionists, or financial experts who analyze your case and may testify on your behalf. Their unbiased, professional opinions can be invaluable.
- Deposition Costs: Fees for court reporters and videographers to record official, under-oath testimony from witnesses, the at-fault party, and others involved in the case.
- Medical Records: The administrative costs charged by hospitals and clinics to provide copies of your medical history, which are the foundation of proving your injuries.
- Investigation Costs: The expense of hiring investigators, serving legal documents (subpoenas), and gathering other evidence like police reports or video footage.
What Are the Other Ways Lawyers Typically Charge?
While we handle personal injury cases on a contingency basis, you may encounter other fee structures in different areas of law.
The Billable Hour
This is the traditional model where a lawyer charges a set rate for every hour, or fraction of an hour, they work on a case. This is common in business law, family law, and criminal defense. The challenge for a client is the unpredictability. A complex case would lead to costs that are difficult to forecast, creating financial uncertainty when you can least afford it.
Flat Fees
A flat fee is a single, predetermined price for a specific legal service. This is often used for straightforward tasks like drafting a will, handling a real estate closing, or managing an uncontested divorce. This model provides cost certainty for the client, as the price is known from the outset.
Retainer Fees
A retainer fee is essentially a down payment on a lawyer’s future services. The lawyer will then bill their hourly rate against the retainer amount. When the retainer is used up, the client may need to deposit more money to continue the representation. This is not how we handle personal injury cases at our firm. You should never have to pay out-of-pocket to get the legal help you need after an accident.
Structured Settlements vs. Lump Sums: The Cost Implications
When you reach a settlement, you’ll face a choice that sounds simple but has complicated financial implications: take all the money now, or receive it in payments over time.
Why Insurance Companies Love Structured Settlements
Insurance companies frequently offer structured settlements because the math works in their favor. Instead of writing you a check for $500,000 today, they might offer you $3,000 per month for the rest of your life.
From their perspective, this is brilliant. They can invest that $500,000 and likely earn more than the monthly payments they’ll make to you over time. They’re essentially using your settlement money to generate profits while paying you back slowly.
The Hidden Costs of Each Option
Lump Sum Challenges:
- You receive the full amount immediately, but you’re responsible for making it last
- Large settlements can push you into higher tax brackets if portions are taxable
- You’ll need to invest or manage the money yourself
- There’s no protection if you spend it unwisely or lose it to bad investments
Structured Settlement Trade-offs:
- Payments are guaranteed and typically tax-free
- You can’t access the money early if you face a financial emergency
- The total amount you receive over time might be less than what you could earn investing a lump sum
- Inflation slowly erodes the purchasing power of fixed monthly payments
How This Affects Your Attorney’s Fee
Here’s something most people don’t consider: how does your attorney get paid when you choose a structured settlement?
With a lump sum, it’s straightforward. The attorney takes their percentage off the top, and you receive the remainder.
With a structured settlement, it gets more complex. Your attorney might:
- Take their fee from the present value of the structured settlement
- Receive a portion of each monthly payment
- Negotiate a hybrid approach with some money upfront and some over time
This decision affects your attorney’s cash flow, which is why some firms have preferences about settlement structures. Make sure your attorney explains how their fee will be handled before you decide.
How Lawyer Shopping Actually Affects Costs
Most people assume that shopping around for an attorney is like shopping for any other service—find the best price and highest quality. But in personal injury law, the relationship between cost and value is more difficult than you might expect.
Why the Lowest Fee Isn’t Always the Best Deal
Attorney A charges a 25% contingency fee. Attorney B charges 33%. Attorney A looks like the obvious choice, right?
Not necessarily. Here’s what those numbers don’t tell you:
- Case Expense Policies: Attorney A might advance fewer case expenses, meaning they build a weaker case. They might skip the expensive biomechanical expert who could explain why your back injury will cause problems for decades. Attorney B might invest $50,000 in expert witnesses and medical records that turn your $100,000 case into a $300,000 case.
- Settlement Approach: Some attorneys with lower fees make up the difference in volume. They settle cases quickly rather than pushing for maximum value. A 25% fee on a $150,000 quick settlement nets them $37,500. A 33% fee on a $400,000 settlement after thorough preparation nets them $132,000, and nets you $268,000 instead of $112,500.
- Firm Resources: Personal injury law requires significant upfront investment. Attorneys with lower fees might lack the resources to properly investigate your case or the financial ability to take it to trial if necessary.
How Firm Size Affects Your Costs
- Large “Billboard” Firms: These firms handle thousands of cases and sometimes operate like settlement mills. They might offer lower contingency fees because they’re processing cases in volume. Your case might be handled primarily by paralegals and junior attorneys, with the “name” attorney you saw in the commercial making minimal involvement.
- The trade-off: lower personal attention but potentially strong negotiating power with insurance companies who know the firm will go to trial when necessary.
- Mid-Size Litigation Firms: These firms typically handle 50-200 active cases. They often provide a good balance of personal attention and resources. They have the infrastructure to handle complex cases, but aren’t so large that you get lost in the shuffle.
- Solo Practitioners and Small Firms: You’ll typically get more personal attention, but the attorney might lack resources for expensive cases. They might refer complex cases to larger firms (and share the fee) or handle them with limited resources.
The Real Cost of Switching Attorneys Mid-Case
Let’s say you hire Attorney A, but six months into your case, you’re unhappy with their communication. You want to switch to Attorney B.
Both attorneys will likely claim a portion of the eventual fee based on work performed. The first attorney might claim 20% of the total fee for initial case development. The second attorney might want their full 33% for taking the case to conclusion.
Suddenly, your total attorney fees jump to 53% of your settlement—if both attorneys are reasonable. If they dispute the fee split, you might end up paying for fee arbitration or litigation between your own attorneys.
Frequently Asked Questions About Lawyer Costs
Will I have to pay taxes on my settlement money?
Generally, compensation for physical injuries and related emotional distress is not considered taxable income by the IRS. However, portions of a settlement meant to cover lost wages or punitive damages (which are rare) may be taxable.
We’ll discuss the specifics as they apply to your case and will structure the settlement in a way that is most advantageous to you.
Does it cost more to take my case to trial versus settling?
Yes, taking a case to trial involves significantly more case expenses (like expert witness fees for in-person testimony) and may involve a higher contingency fee percentage to account for the increased work and risk.
This is a strategic decision we would make together, carefully weighing the insurance company’s final offer against the potential outcome at trial. You will always have the final say.
Why can’t you tell me exactly how much my case is worth in our first meeting?
An honest lawyer cannot and will not promise a specific outcome at the beginning. The value of your case depends on many factors that unfold over time, including the full extent of your medical treatment, your long-term prognosis, the total amount of your lost wages, and the evidence we gather.
We can give you a general idea based on similar cases, but we will not make guarantees we can’t keep.
What if the other party’s insurance company offers me a quick settlement?
Insurance companies are businesses that must balance paying claims with making a profit. An early offer is often an attempt to settle your claim for less than its full value, before you fully understand the long-term impact of your injuries.
It is always wise to speak with a lawyer before accepting any offer or signing any documents presented by an insurance adjuster.
Does hiring a lawyer mean my case will take longer?
Not necessarily. While a thorough investigation takes time, having a lawyer often streamlines the process. We handle the paperwork, communicate with the insurance company on your behalf, and meet all the legal deadlines, which can prevent delays caused by common mistakes. Our involvement signals to the other side that you are serious about receiving fair compensation, which can sometimes encourage a more reasonable and timely settlement offer.
Your Path Forward Starts with a Conversation
Worrying about how to pay for a lawyer shouldn’t stop you from getting the help you need to put your life back together. The contingency fee system was created to remove that barrier, ensuring that your financial situation does not dictate your access to justice.
The next step is a simple, free conversation to discuss your situation and get clear answers to your questions. You have nothing to lose and everything to gain by understanding your rights.
Let our team at Steven A. Bagen & Associates, P.A. handle the legal process so you can concentrate on what matters most—your health and your family.
Call us today at (800) 800-2575 to get started.