Most lawyers work on a contingency fee basis in personal injury cases.
But what does this mean for you?
If you’re injured in an accident, your lawyer will represent you on a contingency fee basis. That means the lawyer will only get paid if you win your case or receive a settlement. If you don’t win, the lawyer doesn’t get paid. This arrangement can be helpful for you because it means you don’t have to pay any fees unless your case is successful.
At the Phoenix Injury Lawyers Legal Firm, our Phoenix personal injury lawyer will advance with your case without being paid for all the costs associated with your case, including the costs of investigation, expert witnesses, and court costs. You won’t have to pay back those costs unless you win your case.
Contingency fees are a common way for lawyers (including ours at the Phoenix Injury Lawyers Legal Firm) to be compensated in personal injury cases, but they aren’t available in every state. To see if your case is solid and whether you can expect fair compensation for your losses, reach out to our Phoenix auto accident lawyers right now.
What Are Contingency Fees?
Contingency fees are pretty simple to understand—they’re what your lawyer charges you for their services, and they’re only paid if you win your case.
How does that work? Well, your Phoenix auto accident lawyer will agree to take a certain percentage of the settlement or jury verdict that you receive. So, if you don’t win, they don’t get paid. And if you do win, they’ll get paid out of the money that you receive.
The percentage can vary depending on the type of case and how much work is involved, but it’s usually around 33% (although it can vary based on the complexity of the case).
Some people might think that this is a riskier way to pay for a lawyer, but it incentivizes them to get you the best possible outcome because their fee is contingent on you winning.
Why Do Lawyers Charge Contingency Fees?
The simple answer is that lawyers charge contingency fees because they only get paid if they win your case. If they don’t win, they don’t get paid.
This type of fee arrangement is common in personal injury cases because it allows people who have been injured to get the legal help they need without having to come up with the money to pay a lawyer upfront.
Contingency fees are also a way for lawyers to take on cases that might not be worth their time if they had to be paid hourly. For example, if a lawyer charges $200 an hour and knows it will take 20 hours to research and write a motion, that’s $4,000 just for the lawyer’s time. If the case settles for $5,000, the lawyer would only make $1,000. In that scenario, it might not be worth the lawyer’s time to take on the case. But if the lawyer charges a contingency fee of 33%, they would make $1,650 if the case settled for $5,000—a much better return on investment.
How Are Contingency Fees Calculated?
The calculation of a contingency fee is generally a percentage of the total amount recovered in the case. For example, if you hire an attorney on a contingency fee basis and they recover $100,000 for you, the attorney may earn a 33.3% contingency fee. This means that the attorney would keep $33,333 and you would get $66,667.
How Does The Lawyer Get Paid If The Case Is Not Successful?
If the case is not successful, the lawyer does not get paid. This is why lawyers only take cases they believe they can win. If a lawyer does not believe they can get you a fair settlement or win your case at trial, the lawyer will not take your case on a contingency fee basis.
Are There Any Disadvantages To Contingency Fee Arrangements?
The biggest disadvantage of a contingency fee arrangement is that you may end up owing your attorney more money than you would have if you had paid by the hour.
For example, let’s say you hire an attorney on a contingency basis to handle your personal injury case; if the attorney charges 33.3% as a contingency fee, they’ll keep one-third of any money that you recover.
Now, let’s say that you recover $30,000 in your settlement. That means that your attorney will keep $10,000 and you will get to keep $20,000.
Now, let’s say that you had hired an attorney on an hourly basis, and you were charged $200 per hour. If it took the attorney 20 hours to settle your case, then you would owe the attorney $4,000. In this scenario, you would end up with more money than if you had gone with a contingency fee arrangement.
Do All Personal Injury Lawyers Work On A Contingency Fee Basis?
No, not all personal injury lawyers work on a contingency fee basis. Some lawyers may require that you pay an hourly rate or a flat fee. However, most personal injury lawyers do work on a contingency fee basis. What does that mean for you? Essentially, it means that you won’t have to pay your lawyer anything upfront. Instead, your lawyer will take a portion of your settlement or verdict as payment.
There are a few reasons why contingency fees make sense in personal injury cases. First, these cases can be expensive to litigate. If you had to pay an hourly rate, you might end up owing your lawyer thousands of dollars even if you ultimately win your case.
Second, contingency fees align the interests of the lawyer and the client. If the lawyer doesn’t win the case, they won’t get paid. This gives the lawyer extra incentive to do everything possible to win your case.
If you’re considering hiring a personal injury lawyer, it’s important to ask about the lawyer’s fee structure. You should also be sure to understand all the terms of your agreement before signing on with a lawyer.
Hire Our Phoenix Auto Accident Lawyer For Your Case!
If you’re considering hiring a lawyer on a contingency fee basis, first, make sure you understand the fee arrangement – some lawyers charge a higher percentage if the case goes to trial, for example. Second, be sure you’re comfortable with the lawyer and their experience – you want someone who has a good track record of winning cases. And finally, don’t be afraid to negotiate – it’s not uncommon to try and negotiate a lower contingency fee.
If you have any questions about contingency fees, or personal injury law, or want legal help with your case contact our Phoenix personal injury lawyers at the Phoenix Injury Lawyers Legal Firm today. You’ll get to talk to one of our attorneys one-on-one and we’ll take on your case without any upfront payments!