Steven A. Bagen | December 15, 2024 | Personal Injury

Contingency Fees wording with clock and calculator.

If you’re searching for a personal injury attorney to represent your legal needs, you’ve likely seen them advertise they work for contingency fees. But they often fail to clarify the answer to the obvious question: what does a contingency fee mean? A contingency fee is a disclosed percentage of your personal injury settlement that your attorney will collect before issuing you a final settlement check.

A contingency or contingent fee arrangement allows personal injury attorneys to provide legal services to clients without upfront costs or ongoing out-of-pocket expenses. They also guarantee that your lawyer doesn’t get paid unless you do. If you or a loved one have been injured or experienced wrongful death due to the negligence of another person, consult a Williston personal injury lawyer. 

 

What is the Average Contingency Fee Amount?

Lawyers discussing legal fees using calculator in law office.

The average contingency fee amount varies widely—based on your location, the nature of your accident type, the length of your treatment, the complexity of your case, and your lawyer’s discretion. Personal injury cases, such as car and truck accidents and worker’s compensation claims, generally have a lower contingency fee percentage than mass torts or class action lawsuits—which can involve considerably more time and risk.

Some personal injury attorneys have a set contingency fee, regardless of their case type. Others use a sliding scale for their fees. A sliding scale contingency fee is generally based on the timeframe in which a personal injury claim is resolved. You must have a personal injury lawyer clarify their fees before retaining their services.

Factors That Influence a Contingency Fee Percentage

How a personal injury attorney determines their contingency fee can be based on several factors. You can ask prospective law firms to explain how they’ve determined theirs before hiring them. Some standard considerations made include:

  • Case Complexity: The more complex your case is, the more it may affect the percentage of an attorney’s contingency fee. For example, truck accident cases often involve multiple liable parties and extensive evidence that is not typical of other cases. Personal injury cases that require extensive research and resources may have higher contingency fee percentages.
  • Invested Time: The time and effort put into a personal injury case can significantly impact the contingency fee percentage. Time is money in every field of employment, and personal injury law is no different. It may affect the contingency fee if your case requires countless court appearances and drawn-out litigation.
  • Involved Risks: Cases that involve high or definitive risks have the potential to carry higher contingency fees. For example, if your case has a lower chance of success, your attorney may inform you of the risk and set a higher contingency fee for the harder work they must do to secure a win.
  • Incurred Expenses: During the process of filing and processing a personal injury claim, your attorney may encounter additional expenses. These include court fees and investigation costs. Your attorney usually deducts these from your total compensation before calculating their contingency fee.
  • Reputation and Experience: Finding a personal injury attorney with experience handling cases like yours is imperative for successful outcomes. Experience and reputation may incur a higher contingency fee. But often lead to substantially higher settlements. Remember, as with everything else in life, you get what you pay for—weigh your options. 
  • Location: Geographical location can significantly impact the percentage your personal injury attorney determines for their fee. Regions with a higher demand for personal injury law services may see higher contingency fee percentages. 

You might negotiate a contingency fee with a personal injury lawyer (though not always). Discussing and potentially adjusting the contingency fee percentage based on these factors (and others) surrounding your case is common practice. Have an open dialogue.

Find a personal injury attorney who views you as an injured person needing help, not just a substantial financial payout for their firm. Unfortunately, you may encounter both types when conducting your free consultations.

An unwillingness to negotiate a smaller contingency fee is not necessarily conducive to being unethical. Many lawyers have a set contingency fee rate as part of their firm’s policy.

Do All Personal Injury Lawyers Work on a Contingency Fee Basis?

No. Some personal injury attorneys prefer working hourly, particularly concerning time-consuming and intricate cases. Others offer flat rate fee structures for their services. The fee structure may depend on several factors, such as the nature of your accident claim, the law firm’s business model, and client preference.

However, most personal injury lawyers work within contingent fee arrangements. It’s critical that you discuss payment options and all fees associated with your personal injury case before hiring an attorney.

Understanding Personal Injury Lawyer Fees

Legal fees set by the court.

Before retaining a personal injury attorney, you must understand all fees associated with your case. You don’t want to have future surprises that overwhelm your finances. It’s important to note that not every personal injury claim has the same circumstances—fees may vary depending on various factors.

Contingency Fees

It’s essential to understand that a personal injury attorney’s contingency fee is what they charge for their time and services. A contingency fee generally covers:

  • Gathering and analyzing evidence to determine all liable parties
  • Properly completing and filing legal paperwork within deadlines
  • Identifying and interviewing witnesses from the accident scene
  • Reviewing medical records and physician notes
  • Consulting with experts relevant to the accident type
  • Preparing and presenting evidence to prove negligence 
  • Communicating and negotiating with all liable parties

Though this is not an exhaustive list of everything your attorney performs and provides for their contingency fee, it demonstrates the invaluable service built into obtaining them. However, contingency fees are not the only expense for some personal injury cases.

Clerical and Court Fees

Your attorney may encounter other fees not included in their contingency fee arrangement during their investigation. For example, clerical and court fees if your case moves forward to trial. These fees may involve:

  • Fee for obtaining a copy of the police report
  • Cost of obtaining medical records
  • Expert witness testimony fees
  • Court filing fees 
  • Court reporter fees
  • Deposition expenses
  • Administrative costs (making copies, postage)
  • Jury fees

These fees are typical with personal injury cases. Fortunately, your attorney will not require you to pay them upfront. They will be deducted from your compensation before issuing your settlement check. It’s important to distinguish that, unlike contingency fees, you may still owe the clerical and court fees if your attorney does not win your case. Ask them to clarify if that’s the case before hiring them.

Furthermore, if your personal injury claim goes to court, it’s standard practice for an attorney to require a higher contingency fee percentage—due to the significant increase in time and resources involved. Have law firms clarify if that is their policy before signing your contingent fee arrangement so there are no future financial surprises.

Why Are There Additional Fees Not Included in a Contingency Fee?

If you don’t understand why the additional fees are not included, consider this: your attorney may consult expert witnesses. They do this to determine liability, prove negligence and injuries, and maximize your compensation with expert testimony. The contingency fee covers the attorney’s time in meeting with the experts.

However, accident reconstructionists, medical experts, and economists also have fees for their time and services. They reasonably expect to be paid for their time and services.

Beware of Unethical Practices Shady Attorneys Use to Inflate Fees

Attorney receiving legal fees from the client

Lawyers have rules and regulations regarding how they can and cannot charge and collect fees. Unfortunately, not all of them abide by these regulations. Beware of unethical practices some personal injury lawyers use to inflate fees for their benefit.

These personal injury attorneys operate more as shady salespeople padding their commission checks. You must be aware of these practices so that you can spot them during your free initial consultations. Practices unethical lawyers use to inflate their overall costs include:

  • Baiting and Switching: Some lawyers offer lower contingency fee percentages to settle a case quickly. While this may sound tempting for the injured party, it may be detrimental to recovering the total costs of their injuries and damages. It results in a quick payout for the attorney and possible future healthcare expenses (that should have been recovered) for the accident victim. Before settling your case, you should reach your maximum medical improvement (MMI). An MMI refers to when your condition has stabilized or reached a point where it is unlikely to improve. 
  • Hiding Fees: Some personal injury attorneys may intentionally hide costs by not disclosing them to clients when taking their cases. These expenses can include the outlined clerical and court fees and other costs, such as using in-house employees like paralegals and indulgent travel expenses. 
  • Charging Interest: Most personal injury lawyers advance the costs of court and clerical fees involved with your case. They are withdrawn from compensation or become due if your attorney loses the case. However, some attorneys will tack interest onto advanced costs to inflate their fees. 
  • Failing to Negotiate Liens: To save their clients money, it’s common courtesy and practice to negotiate final healthcare costs before paying medical liens placed on compensation. They do this before collecting their contingency fee and issuing your check. However, some attorneys will not negotiate for lower healthcare costs to ensure an inflated percentage of a higher overall check. This abhorrent practice costs the accident victim unnecessary losses from their final settlement.

Unethical law firms often offer seemingly lower contingency fees, knowing they will inflate the bill with these unscrupulous charges. If you suspect your attorney is behaving unethically, consult another lawyer about your concern. You don’t want them representing your claim.

Important Questions to Ask Personal Injury Attorneys Before Hiring Them

Personal injury lawyer gavel in hand and question mark sign

Be prepared with a list of questions, listen to how an attorney answers verbally, and watch their body language when they respond. Are they sincere in what they’re saying or projecting a big sales pitch? Questions you want to ask before hiring a personal injury lawyer are as follows:

  • Do you work for a contingency fee? How much is that fee?
  • Does your contingency fee percentage increase if my case goes to trial?
  • Do I owe any money if you do not win my case? If so, what are those expenses?
  • How many cases like mine have you won? 
  • Do you have trial experience with cases like mine?
  • How much time will you devote to my case?
  • What are my case’s weaknesses?
  • How long will it take to resolve my case?
  • What do you estimate my case is worth?
  • Who in your firm will handle my case?
  • What is my role in the case? 
  • How often will you communicate with me?

Note any other questions you have before scheduling free consultations with local personal injury attorney firms. It’s good to take advantage of the free consultations. It’s good practice to schedule a few before selecting your personal injury lawyer.

Secure a Written Contingency Fee Agreement

A written contingency fee agreement clarifies the terms of your arrangement and protects you against unscrupulous practices. It includes the contingency percentage, additional fees, and whether or not you owe anything if the case is lost. A written contingency fee agreement certifies the understanding between you and your lawyer—ensuring trust and transparency.

Common Types of Personal Injury Accidents 

Finding a personal injury attorney who handles accidents like yours is imperative for ensuring optimal results. Common accident types that personal injury lawyers practice include:

Medical bills and other expenses can add up quickly when you are hurt in a personal injury accident. A personal injury attorney will fight to secure compensation for your medical bills, property damages, lost income, pain and suffering, and other expenses incurred in your accident.

Consult a Personal Injury Attorney

If you’ve suffered an injury in an accident that wasn’t your fault, you deserve compensation for your injuries and damages. No one should be financially responsible for the astronomical costs of recovering after a personal injury accident that wasn’t their fault. Contingency fee arrangements allow personal injury lawyers to represent these accident cases for anyone needing legal assistance. Schedule a free case evaluation today to discover a plan to recover compensation for your losses.