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As a victim of a personal injury accident, you may be concerned about how to afford legal representation. Accidents are not only unexpected, but they can also lead to overwhelming financial burdens, including medical bills and time lost from work. This can make the thought of hiring a lawyer feel out of reach.
Fortunately, the contingency fee structure offers a solution to ease financial worries. With this arrangement, experts like attorney Rich Godshall can work on your case without requiring upfront payment. Let’s explore how this works so you can better understand your options.
What Is the Contingency Fee Structure?
Under the contingency fee structure, your attorney agrees to represent you on the condition that they will receive financial compensation if they successfully win your case.
To put it into simpler terms, if you don’t win, neither will your lawyer.
“The exact percentage of your compensation going to your lawyer’s financial compensation will depend on your agreement. But once you do come to an agreement, you don’t have to pay any upfront fees. Your lawyer will cover all the costs related to the claim,” says attorney Rich Godshall.
Your attorney may also charge you additional fees depending on your case. They may cover filing, research, expert fees, and other court expenses. These are all expenses the attorney will have fronted during the claim. If the case is successful, they will recover the expenses from the winnings, depending on your agreement.
Types of Contingency Fee Structures
There are different types of contingency fee structures. Let’s discuss some of them briefly.
Straight Contingency
This is the most common structure personal injury lawyers use. The lawyer typically takes one-third of the gross recovery, ranging from between 30 and 40 percent.
Graduation Contingency
Some attorneys use a different contingency structure, charging a lower percentage, like 25 percent of the gross recovery, for early settlements. If the case proceeds to trial, they charge higher percentages, say 40 percent.
Hybrid Contingency
Under this structure, the attorney charges a flat fee followed by a percentage of the gross recovery after expenses.
So there you have it—the most common types of contingency fee structures. Keeping informed of these payment arrangements lets you stay prepared and puts you in a better position to negotiate a fair fee structure with your personal injury attorney.
Factors Influencing Contingency Fees
There are some other factors that can influence the fee your attorney charges for your case. These are discussed as follows:
Court-related Fees
Your attorney may advance fees to cover costs associated with expert witnesses, filing documents, and other court procedures. These expenses can also include fees for investigators, medical record retrieval, and depositions. If your case is successful, your attorney will recover these costs from your settlement or judgment. However, if you lose, you may still be responsible for reimbursing these expenses.
Case Type
Some cases may involve a higher risk of losing. Take, for instance, a product liability case against a large corporation. These cases can be time-consuming and require significant resources, as the defendant may have a team of lawyers on retainer to aggressively fight the claims. Personal injury attorneys may charge higher fees for these complex cases due to the effort and risk involved. Additionally, cases involving severe injuries or multiple defendants may also warrant higher fees due to their intricacies.
Conclusion
Understanding the contingency fee structure is crucial for anyone seeking legal representation in a personal injury case. This payment arrangement allows you to focus on your recovery without the pressure of upfront legal costs. By learning the different types of contingency structures and understanding the factors that affect fees, you can approach your case with confidence and make informed decisions about your legal representation. With the right attorney, you’ll have the support you need without additional financial strain.
This financial flexibility ensures that even those facing significant medical expenses or lost wages can still access quality legal services. It also motivates your attorney to work diligently, as their payment depends on the success of your case. Ultimately, this arrangement fosters a partnership that aligns both your interests and your attorney’s goals.
