Dealing with an injury is a difficult undertaking in any situation. When it is compounded by the need for legal remedy due to a third party’s negligence, that only adds to the burden of recovery. Having a comprehensive understanding of the legal process, including compensation for your legal representation, can take away some of that stress. 

While some people may have a lawyer on retainer, or pay for legal services hourly, most plaintiffs and attorneys in personal injury cases enter into a contingency-based fee agreement. Contingency fees have a number of benefits for both the client and the attorney as compared to set hourly or retainer fee structures.

Learn all about how this pay structure works by reading below.

What is a contingency fee?

A contingency fee is an arrangement between the client and attorney by which the attorney receives a portion of the judgment in return for his or her services. The client pays no money out of pocket at any time during the representation period.

If the client wins a judgment, the attorney receives a portion of the judgment. This can be an agreed-upon set amount, but typically it is a percentage of the total judgment. If the client does not win a judgment, then the attorney receives no payment.

The reason that most personal injury plaintiffs attorneys use a contingency fee agreement is that it’s advantageous in a number of ways for both the client and the attorney.

No out-of-pocket cost for the client

Most people cannot afford to keep an attorney on retainer or pay the hourly fee associated with attorneys’ services. Therefore, a contingency agreement allows a person in need of representation to hire an attorney without having to pay any upfront or throughout the lawsuit with no guarantee of a favorable settlement.

Both parties are incentivized

In a contingency agreement, both the client and the attorney have an incentive for success. The client obviously wants to get compensated for their injury, and the attorney wants to earn money for his work and attention to the case.

If recompense for both parties is contingent on a successful outcome, then both parties will work hard to realize that outcome.

More efficient work

An attorney working on an hourly fee structure will have no incentive to work quickly. In fact, it is in the interest of that attorney to put in as many hours as possible.

By contrast, attorneys working on a contingency fee will have every reason to work quickly to resolve the case so that they can collect their fee. This does not mean, however, that they would have a reason to cut corners or provide less than top effort. Indeed, the attorney will want to make the best possible case for his client to ensure the highest possible judgment.

Helps ensure quality cases

A contingency-based agreement will help ensure that your case is legitimate. An attorney will not take a case on contingency unless they believe that the case has merit and is winnable. This is by no means a guarantee of success, but it does mean that neither the client nor the attorney is wasting their time with a frivolous lawsuit.

Frequently Asked Questions

• Are contingency fees good for the client?

In a word, yes. Contingency fees are beneficial for all the reasons discussed above, for both the client and the representing attorney.

• How much is a contingency fee?

The fee structure varies from case to case. Typically, a contingency fee will be around one-third of the judgment plus associated fees. However, the percentage can range from 30-50% depending on the law firm and the nature of the case.

• What other costs are associated with a contingency fee?

Aside from front the attorney’s fee, ancillary costs can include:

•  court filing fees 

• hiring experts

• evidentiary gathering

• hiring of a private investigator

• Other miscellaneous fees related to the lawsuit

Selingo Guagliardo Is Here to Help

Dealing with injuries is never fun. Neither is going through a lawsuit. However, if you do find yourself needing a car accident lawyer in Kingston, PA, give us a call.

We are always available to help you find remediation for a negligent act that resulted in harm. It is not necessary for you to dole out substantial sums of money or jeopardize your financial life to get the help you need.

Reach out to us today to find out about your options so we can help you go forward with your life once again.