Many people who have been involved in an accident miss some time from work due to their injuries. They also have medical bills and other expenses related to the accident. With all these expenses piling up, they wonder how they can afford legal services.
Personal injury attorneys often take cases on a contingency fee basis. Contingency fees allow clients to hire an attorney to represent them without spending any money upfront. Keep reading below to learn all the details about contingency fees and how they work.
What Is A Contingency Fee?
A contingency fee is a form of payment in which the attorney takes a percentage of the settlement or verdict awarded to their client. You may have seen slogans such as, “No Fee Unless We Win Your Case”; this type of slogan conveys the essence of a contingency fee arrangement.
When the case is settled or resolved, the fee is deducted from the total settlement amount. The higher the award to the client, the more the attorney will receive. This arrangement gives clients some financial flexibility and gives attorneys some incentive to seek higher awards for their clients.
There are many types of damages that may be compensable in personal injury cases. Some examples include the following:
- Medical bills (current and future)
- Lost wages
- Future lost wages
- Pain & suffering
- Anxiety or depression
- Home health services
- Physical therapy services
All damages are added together to determine the full amount of the settlement or verdict. The fee is then calculated based on the total amount of the award. For instance, a 25% contingency fee on a $10,000 settlement would result in $2,500 going to the attorney and $7,500 to the client.
How Much Are Contingency Fees?
The amount of contingency fees can vary based on a few different factors. Some of the most common factors that affect the contingency percentage include:
- The attorney’s experience level
- The complexity of the case
- The length of time it may take to resolve the case
- Whether or not the case goes to trial
In some cases, attorneys may charge a different percentage during different phases of the case. For instance, an attorney may charge a contingency fee of 25% if the case is settled without filing a lawsuit. That amount may increase to 30% if the settlement occurs after a lawsuit is filed. Finally, the fee may go up to 40% if the case goes to trial.
The Texas Disciplinary Rules of Professional Conduct generally do not set limits on the amount of the fee. However, the rules do state that the fee must be reasonable. Additionally, the fee calculation method must be communicated plainly in writing to the client at the beginning of the representation.
Types Of Cases That Use Contingency Fees
The most common area of law where contingency fees are used is personal injury. Nearly all personal injury attorneys accept cases on a contingency fee basis. Some examples of the types of cases they may handle with a contingency fee include the following:
- Car accidents
- Big truck wrecks
- Motorcycle accidents
- Slip and fall cases
- Defective products
- Medical malpractice
- Wrongful death
Texas rules only allow contingent fees in civil cases. Attorneys may not represent clients in criminal cases on a contingency fee basis.
Payment For Other Case Expenses
There are many other expenses that may be incurred during a civil case. Some examples of these expenses include the following:
- Charges for copies of medical records
- Court filing fees
- Deposition expenses
- Hiring expert witnesses
So, who pays these additional expenses? Generally, the client is responsible for paying for these expenses. However, the method and timing of payment can vary.
Many attorneys who charge contingency fees will pay for these expenses initially and later recoup them from the final settlement amount. These expenses would be on top of the attorney’s fee. However, some attorneys require clients to pay for these expenses out-of-pocket as the case progresses.
Learn How You Can Hire An Attorney Using A Contingency Fee
If you have been injured and need an attorney, you may be wondering how you will pay their fee. Thankfully, most personal injury attorneys utilize contingency fees. This allows you to hire an attorney without needing any money upfront.
Contact the Dallas Personal Injury Law Firm of Bush Personal Injury and Car Accident Lawyers LLC Today For Help
For more information, please contact the Dallas personal injury law firm of Bush Personal Injury and Car Accident Lawyers to schedule a free consultation today.
Our office is conveniently located in Dallas, near the Dallas Downtown Historic District. We serve statewide throughout Texas.
Bush Personal Injury and Car Accident Lawyers LLC
701 Commerce Street, Suite 703
Dallas, TX 75202
(214) 615-6394