While one of the most common ways attorneys charge is by the hour, some enter into contingency fee arrangements with their clients. Under these fee arrangements, the client only pays based on the outcome of the case. Your lawyer gets paid a percentage of the money you win. The written agreement explains how case costs are handled.
Keep reading to learn more.
Contingency Fees in Personal Injury Cases
Contingency fees are standard in personal injury cases. While some people may anticipate a future need for legal services, such as when buying a house or getting a divorce, few are prepared to pay for all the expenses that follow an unexpected accident in advance.
In personal injury cases, the attorney fees are usually contingent upon recovering money for the client, either through a settlement or a trial award.
Benefits of Contingency Fee Agreements
Contingency fee arrangements benefit clients because of the following:
- Attorney fees are not due up front.
- You don’t have to pay attorney fees if your lawyer does not win your case.
- A lawyer is unlikely to take a case without merit, as payment is not guaranteed.
- You will pay your attorney a percentage of your settlement or trial award.
Contingency fees make legal services more accessible and affordable for everyone.
Common Contingency Fee Arrangements
A standard contingency fee is 33% or one-third of an award. For example, if a lawyer charged 33% for legal services in a car accident and recovered $100,000 in compensation, the fee would be $33,000, leaving the client with the remaining $67,000.
However, some attorneys may charge different rates depending on the outcome of the case. For example, they may charge 33% if the case ends in a settlement with the insurance company, 40% if they have to file a lawsuit, 45% if they have to litigate the case through a trial, and perhaps even more if they have to deal with an appeal.
State and federal law limit the percentage that Georgia attorneys can charge in certain cases, including workers’ compensation and Social Security disability cases.
In addition to attorney fees, clients may be responsible for paying legal costs, such as:
- Accident report and medical records retrieval costs
- Postage
- Phone calls
- Filing fees
- Expert witness fees
- Travel expenses
Because every attorney sets their own fees and policies regarding legal costs, it’s important that you understand what the fee is and how costs are handled.
Ethics Regarding Contingency Fees
Georgia lawyers are governed by the Georgia Rules of Professional Conduct, which cover how fees are set and explained.
Reasonable Fees: What Factors Apply
Attorney fees must be considered reasonable. Reasonableness is based on specific factors, such as the complexity of the case, the level of skill required to handle the matter competently, and whether taking your case would limit the lawyer’s ability to take on others.
When Contingency Fees Are Not Allowed
Georgia lawyers may not use contingency fees in divorce or other domestic relations matters when the fee depends on obtaining a divorce or on the amount of alimony, support, or property division. Contingency fees are also barred in criminal defense cases.
Written Agreement Requirements
Contingency fees should be in writing and state how the fee is determined, including the percentages that will apply if the case is settled, tried, or appealed. The client’s responsibility for litigation and other expenses must be discussed, including whether they are deducted from the recovery before or after calculating the contingent fee.
Required Client Statement
Following a contingency fee-based case with financial recovery, the lawyer must give the client a written statement of the outcome and the following financial information:
- The remittance to the client
- The total amount of the attorney fees
- How the fees were calculated
- The amount of the fee paid to another lawyer who is not a partner or associate of the lawyers’ firm, the amount of the fee paid to each, and the manner in which the amount paid was determined
Your lawyer should answer any questions you have about their contingency fee arrangement before they begin working on your case.
Contact Starks Byron, P.C. Today for a Free Consultation With a Kennesaw Personal Injury Lawyer
If you were injured in an accident, we are here to help you. At Starks Byron, P.C., we will explain our contingency fee, break down potential costs, and walk you through your options in plain language. Contact us online or call today at (404) 795 5115 to schedule a free, no-obligation consultation with a Kennesaw personal injury lawyer.
