What Is a Contingency Fee for Lawyers?
If this is your first time hiring a lawyer for a personal injury case, you may not understand what it means when an attorney says he or she works on a “contingency fee basis.” Contingency fees mean that the attorney will not charge a fee for his or her work unless the case ends in financial compensation for the client. It is common among personal injury lawyers in Los Angeles.
What Are Contingency Fees for Personal Injury Lawyers?
In California, when a personal injury attorney states that the law firm charges using a contingency fee arrangement, it means the client will pay the attorney $0 out of pocket. If the personal injury case does not result in a settlement from an insurance provider or a judgment award at court, the client will pay the attorney $0 for services rendered.
If the case results in a monetary recovery for the client, contingency fees mean the attorney’s fee will be deducted directly from the amount won. With this arrangement, the client is never billed directly. Once the payment from the defendant is received, the attorney will take a pre-agreed-upon percentage as his or her fee.
How Do Contingency Fees Work?
If you hire an attorney on a contingency fee basis for your California personal injury claim, you can generally expect a free initial case evaluation. If the attorney offers to represent you, you won’t be billed directly for the attorney’s services by the law firm. Instead, at the conclusion of your case, the attorney will keep a percentage of the overall amount won on your behalf.
If an insurance company offers you a $200,000 settlement for a slip and fall claim, for example, and you agreed to a 35 percent attorney fee, $70,000 would go to your lawyer. The remaining amount would be yours to pay for your outstanding medical bills and other debts before keeping the rest.
How Much Do Most Lawyers Charge for a Contingency Fee?
The percentage charged in a contingency fee arrangement with a personal injury lawyer will depend on the attorney and case. For the most part, contingency fees land within the range of 25 percent to 40 percent or higher, with the average being around one-third or 33 percent.
The rate will depend on how challenging the case is and how much work the attorney will need to perform to achieve a resolution. A personal injury case that has to go to court, for example, will likely come with a higher rate than one that reaches a settlement.
The experience level of the attorney can also affect the contingency fee. For example, a lawyer who is newer to the field may charge less, perhaps around 30 percent, while a highly experienced attorney may charge 40 to 45 percent. Some lawyers offer discounted rates to military service members, as well.
What Are the Benefits of a Contingency Fee?
If you’re looking to hire a personal injury lawyer in California, search for one that offers services on a contingency fee basis for the greatest financial peace of mind. Unlike an hourly rate or flat fee, contingency fees mean you won’t pay the attorney anything if you don’t win your case, and you will never pay directly out of your own pocket.
Contingency fees act as an equalizer, allowing access to high-quality legal services and justice for victims who can’t afford hourly rates. They also incentivize the attorney to maximize your financial recovery, since your attorney won’t get paid unless you do. While you may still have to pay for certain case-related costs, such as hiring an expert, your financial risk will be minimized. To get started with a free consultation, contact Rose, Klein & Marias, LLP. We are proud to operate on a contingency fee basis on all personal injury cases in Southern California.