A car accident lawyer working on contingency fees is common practice in the legal fraternity.
In this type of agreement, your car accident attorney will expect payment only if the case is successful. If the attorney loses the case, they don’t get paid.
In simple terms, any car accident lawyer who accepts to work on a contingency fee implies that their costs are contingent on the case’s outcome. This approach looks promising, especially if you cannot afford the cost of hiring a car accident lawyer.
However, the problem comes with the percentage the attorney may recover and other additional charges that arise during the litigation process.
This blog post will demystify the real meaning of an attorney working on contingency fees to help you decide whether to pay upfront or go for his option. Keep reading.
How Does Contingency Fee Work?
Here’s a breakdown of how a contingency fee arrangement functions:
● Initial Consultation
Most car accident advocates offer a free consultation to evaluate your case. During this meeting, they’ll discuss the accident details, assess potential claims, and explain how their contingency fee works.
● No Upfront Costs
Unlike other legal fee structures, a contingency arrangement means you won’t have to pay anything upfront. The lawyer covers the costs of filing fees, expert witnesses, and other necessary expenses.
● Percentage Agreement
Signing a contract with the lawyer will specify the percentage of your compensation they will take as their fee. This percentage usually varies from 25% to 40%, depending on the complexity of the case and the lawyer’s experience.
● Payment Upon Success
If the lawyer successfully negotiates a settlement or wins your case in court, their fee is deducted from the total compensation. For example, if your settlement is $100,000 and the agreed fee is 33%, the lawyer would receive $33,000.
● What If You Don’t Win?
If the lawyer doesn’t recover compensation for you, you won’t owe them any attorney’s fees. However, depending on your agreement, you might still be responsible for out-of-pocket expenses.
Benefits of a Contingency Fee Arrangement
● Access to Legal Representation
You don’t need to worry about paying upfront fees, making legal help accessible regardless of your financial situation.
● Motivated Attorneys
Since a lawyer’s payment depends on the case outcome, they are highly motivated to secure the best possible settlement or verdict for you.
● Reduced Financial Risk
You won’t be left with hefty legal bills if your case doesn’t succeed.
What to Look for in a Contingency Fee Agreement
Before signing a contingency fee agreement, reviewing the terms is crucial. Look for the following:
- Clear Percentage
Ensure the agreement clearly states the percentage the advocate will take if the case is successful.
- Expense Allocation
Clarify who covers costs like court fees, medical record retrieval, and expert witnesses, especially if the case is unsuccessful.
- Termination Clauses
Understand the terms if you decide to switch lawyers or terminate the agreement.
Final Thoughts
A car accident lawyer working on a contingency fee offers a risk-free opportunity to pursue justice after an accident. The design of this arrangement alleviates financial pressure, allowing you to focus on recovery while your attorney fights for the compensation you deserve.