At Roberts Markland, we know that hiring a lawyer can feel overwhelming, especially when you’re dealing with the aftermath of a personal injury. One of the most common questions we hear is, “How much will this cost me?” That’s where contingency fees come in.
Understanding Contingency Fees
Contingency fees are a payment structure where you don’t have to pay any legal fees upfront. Instead, your lawyer only gets paid if you win the case. Their payment comes from a percentage of your settlement or court award. This fee arrangement is especially popular in personal injury cases, making legal representation accessible to clients who might not have the financial resources to hire a lawyer otherwise.
How Do Contingency Fees Work?
Here’s the simple breakdown: If you win your case, your lawyer takes a percentage of the final settlement or award as their fee. This percentage typically ranges from 25% to 40%, depending on the agreement.
For example, if your case settles for $100,000 and your lawyer’s fee is 33%, they’ll receive $33,000 as their payment, and you’ll receive the remaining $67,000. This way, both you and your lawyer are motivated to achieve the best possible outcome, as their payment depends on your success.
Benefits of Contingency Fees for Clients
One of the biggest advantages of contingency fees is that there are no upfront costs. You don’t need to worry about paying out of pocket while your case is ongoing. This can be a huge relief, especially when dealing with medical bills, time off work, or other financial strains due to your injury.
It also means that anyone can access legal help, regardless of their financial situation. You’re not taking on the financial risk of hiring a lawyer who charges by the hour or has a flat fee. With a contingency fee, the risk is shared between you and the lawyer—you only pay if you win.
What Factors Can Affect the Contingency Fee Percentage?
Not all cases are created equal, so contingency fees may vary based on a few factors.
- The complexity of your case: If your case is more complicated or involves multiple parties, it may require more work, which can result in a higher percentage.
- The risk involved: If the outcome of the case is uncertain or if it’s particularly challenging to prove liability, the fee might be higher to account for the added risk.
- Stage of resolution: If your case settles early, the fee might be lower, but if it goes to trial, the percentage may increase due to the additional time and effort involved.
At Roberts Markland, we always aim to be upfront and transparent about how our contingency fees work, so there are no surprises down the line.
Costs That Aren’t Covered by Contingency Fees
It’s important to note that while the contingency fee covers your lawyer’s payment, there are other costs associated with a case that aren’t included in this fee. These can include:
- Court filing fees
- Expert witness fees
- Medical record fees
- Deposition and transcription costs
Some law firms, like ours, may cover these costs upfront and then deduct them from your settlement. Others may bill you separately for these expenses. It’s essential to clarify how these costs will be handled before moving forward with your case.
What Happens If You Lose the Case?
The beauty of contingency fees? There’s no financial risk of paying a lawyer out of pocket if the outcome isn’t in your favor. However, you may still be responsible for certain out-of-pocket expenses, like court fees or expert witness costs if applicable for your particular case.
Your attorney should provide insight on these details at the time he or she decides to represent you on a contingency fee. At Roberts Markland, we make sure our clients fully understand the details of any potential costs upfront, so there are no surprises.
Transparency and the Importance of a Fee Agreement
Before we start working on your case, we’ll provide a clear written fee agreement that outlines everything you need to know about how fees and expenses will be handled. This agreement will include:
- The percentage charged for expert legal representation.
- Which costs are covered by the firm and which will be deducted from the settlement.
- How out-of-pocket expenses will be handled, especially in the event of a loss.
We encourage clients to ask any questions they have about the agreement and to make sure they fully understand the terms. At Roberts Markland, transparency is key—we want you to feel comfortable with how the process works from the start.
How Contingency Fees Differ from Hourly and Flat Fees
In personal injury cases, contingency fees are much more common than hourly billing or flat fees. Here’s why:
- Hourly fees mean you pay your lawyer for every hour they work, regardless of whether you win or lose. This can add up quickly and may not be feasible for clients dealing with financial strains after an injury.
- Flat fees are a one-time payment for legal services, which is rare in personal injury cases since it’s hard to predict how much work will be required to resolve the case.
Contingency fees, on the other hand, are typically a win-win situation. You don’t have to pay unless you win, and your lawyer is incentivized to get you the best possible result.
Making Legal Representation Accessible
Contingency fees are designed to make legal representation accessible to everyone, regardless of their financial situation. At Roberts Markland, we believe in providing client-focused, transparent legal services, ensuring that our clients understand every aspect of the process—including how fees are handled.
By using a contingency fee structure, we’re able to focus on getting you the compensation you deserve without adding financial pressure. If you have any questions about how our contingency fees work or want to learn more about your case, don’t hesitate to reach out to us. We’re here to help you every step of the way.
Extra Tips:
- What to Ask Your Lawyer About Contingency Fees: Some good questions to ask include: “What percentage will you take?” “How will additional costs be handled?” and “What happens if we lose the case?”
- Ethics and Regulations: Contingency fees are regulated by state laws and ethical guidelines, so you can feel confident that they’re fair and transparent.