If you're in a car accident and it's clear that the other driver is at fault, you'll be looking for a plaintiff's car accident lawyer (the one who represents the person filing the injury claim when it comes to court).
Most auto accident attorneys charge for their services in a rather unique way, as opposed to the hourly rates that many firms charge in other cases. The typical car accident lawyer will charge a "contingency fee" to take over the injury case.
The contingency fee means that the firm will not receive any attorney's fees unless you return the money in your case. The lawyer or law firm will be paid a percentage of the amount of money received from any car insurance agreement or jury decision (if it comes to litigation).
In this article, we take a closer look at how contingency fees work and what you can expect if you decide to hire a lawyer to handle your car accident case.
Percentage of contingencies
The percentage that a lawyer can receive in a contingency agreement varies, but is usually between 25 and 40 percent, with 33 percent (or one-third) being fairly standard. So if you have a 33% contingency agreement and you recover $90,000 in a car accident, your lawyer will receive about $30,000.
The percentage of the contingency charge may vary depending on whether a personal injury claim is to be filed against the other driver (defendant). If the case is resolved before it goes to court, the percentage can be on the downside.
However, if the settlement occurs after the lawsuit is filed and the defendant has served a formal response to your complaint, or if the case goes to court and a jury verdict is reached, the attorney's share can increase to 40 percent.
For example, let's say your lawyer sent a letter of demand to another driver's insurance company about your case, and you quickly reached a settlement of $90,000.
In this situation, the lawyer will again receive $30,000 (33%). However, let's say the case instead ended with a $90,000 jury verdict, and your consent (and/or the law in your state) allowed the attorney to get a 40% refund after the complaint was answered. In this situation, the lawyer can return $36,000.
It is always important to talk to your lawyer about unexpected expenses and carefully review your legal contract. If you don't understand the payment arrangements in the contract, ask your attorney to explain them to you.
Also, like everything in a contract, the fee is negotiable. If you have a “no-hit” case—the car accident is at fault, your damages are clear, the defendant has a lot of car insurance, and there is enough evidence to support your claim—you can certainly negotiate a lower contingency rate. You don't have to give up a third of your compensation just because you need a lawyer's leverage.
Fees and costs
Depending on the attorney and your legal services contract, you may or may not be responsible for upfront legal fees and other legal fees, such as the costs of obtaining medical records and police reports, court reporting fees, and expert witnesses.
Many personal injury firms require the client to pay the above fees as they are due. If your contract states that you are responsible for these costs, you can expect the injury firm to call you and demand payment as it falls due. If you are unable to pay these fees, your case will most likely not proceed until payment has been made.
Other injury firms (usually large firms) will cover all fees and costs. However, fees and expenses will be deducted from your settlement or final decision. Let's say you settled a car accident case for $100,000.
This time, your contract stated that costs and expenses would be deducted from the calculation. Your lawyer incurred $10,000 in costs. In this situation, your attorney will receive $10,000 in costs and expenses and $30,000 in legal fees. You will end up with $60,000 in final recovery ($100,000 - $10,000 - $30,000 = $60,000).
Make sure your lawyer charges his fee on a "net" basis, which is the amount left after the costs of the case have been deducted. This arrangement is typical.
However, some law firms may try to increase their pay by taking their money first. Let them know that you won't accept it, and if it becomes a violation, it's probably best to find another lawyer.
Other Payment Terms
Not all cases provide for a net pay arrangement. Lawyers may receive an initial fee to start your case, as well as collect incidentals at the end of your case.
However, if you return the money, the amount already paid to the lawyer must be deducted from the interest due to the lawyer at the end of the case. For example, if you paid the attorney $2,000 upfront and returned $90,000 as part of the settlement, the attorney will receive $28,000 from the settlement ($30,000-$2,000 = $28,000 ).
In most car accident cases, there is no fixed legal fee. Fixed fees are usually reserved for less complex cases. The law firm may charge a flat fee if legal representation is limited to drafting and responding to a letter of demand. In this case, the fee can range from $300 to $1,000.
Is a car accident lawyer worth it?
The general rule is that the more serious the injury, the higher the value of hiring a lawyer. If you have minor wing bending and little or no injuries, you can probably negotiate an injury settlement without a lawyer.
On the other hand, if you are injured and need serious medical treatment, the value of your case increases rapidly. This means that the insurance agent will work to minimize your losses and try to get you to accept a very low settlement offer - they are in this business to make money, not spend it after all.
In this situation, having an experienced lawyer by your side becomes essential. If you have also been involved in a car accident, feel free to contact our law firm.
The Billera Law - will protect your rights in international and federal courts in America. Details about our judicial practice https://client.work-zilla.com/away?url=https%3A%2F%2Fwww.billeralaw.net%2Fpraktika-advokatov%2F
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