Hiring an attorney can seem daunting, especially when facing unexpected expenses after a car accident or personal injury. Many people worry about how they’ll afford legal representation. This is where a contingency fee arrangement can help.
Here’s what you need to know about contingency fees and how they work.
What Is a Contingency Fee?
A contingency fee is a payment arrangement where your attorney’s fees are contingent upon winning your case. In simpler terms, you don’t pay any legal fees upfront. Instead, your lawyer receives a percentage of your settlement or court award if they successfully recover compensation on your behalf.
This payment structure allows accident victims to pursue justice without the financial burden of paying for legal services out of pocket.
How Do Contingency Fees Work?
When you hire an attorney on a contingency fee basis, you’ll agree to a percentage of your settlement or verdict that will go toward their fees.
Here’s an example of how it works:
- You hire an attorney to handle your car accident case.
- The contingency fee is set at 33% (a common rate for personal injury cases).
- If your case settles for $100,000, the attorney will receive $33,000, and the remaining $67,000 will go to you (minus any additional case-related costs).
The contingency fee covers the attorney’s time, expertise, and effort in handling your case. It also incentivizes them to secure the highest possible compensation since their payment is directly tied to the outcome of your case.
What Are the Benefits of a Contingency Fee?
No Upfront Costs
You don’t need to pay anything upfront to hire a lawyer, making legal representation accessible to everyone, regardless of their financial situation.
Reduced Financial Risk
If your attorney doesn’t win your case, you won’t owe them any fees. This arrangement eliminates the risk of paying for legal services without seeing results.
Aligned Interests
Since your attorney only gets paid if you win, they’re motivated to work tirelessly on your behalf to secure the best possible outcome.
Are There Additional Costs With a Contingency Fee Agreement?
While the attorney’s fee is contingent on the outcome, there may be additional case-related expenses, such as:
- Filing fees
- Expert witness fees
- Costs for obtaining medical records or other evidence
These costs are typically deducted from your settlement or verdict in addition to the contingency fee. Before signing an agreement, your attorney will explain these potential expenses and how they’ll be handled.
Do All Lawyers Work on a Contingency Fee Basis?
Not all lawyers offer contingency fee arrangements. This payment structure is most common in personal injury cases, such as:
- Car accidents
- Truck accidents
- Slip and fall injuries
- Medical malpractice
Other areas of law, like family law or criminal defense, usually require hourly or flat fees. If you’re unsure whether a contingency fee applies to your case, ask your attorney during the initial consultation.
How Much Is a Typical Contingency Fee?
The percentage an attorney charges as a contingency fee can vary, but the most common rates fall between 30% and 40% of the settlement or verdict. Factors influencing the fee include:
- The complexity of the case
- The amount of time and resources required
- Whether the case goes to trial
Discussing the fee upfront ensures there are no surprises later.
Is a Contingency Fee Right for You?
Contingency fees are ideal for individuals who:
- Don’t have the financial resources to pay for an attorney upfront
- Want to minimize financial risk
- Prefer a results-driven approach to legal representation
If you’ve been injured in an accident in Nevada and are considering hiring an attorney, a contingency fee arrangement can provide peace of mind and ensure you have access to skilled legal representation without breaking the bank.
Why Are Contingency Fees Important in Personal Injury Cases?
Many personal injury victims face mounting medical bills, lost wages, and other financial challenges after an accident. Contingency fees level the playing field by allowing anyone to pursue justice, regardless of their financial situation.
This arrangement also ensures that Cogburn Davidson Car Accident & Personal Injury Lawyers are as invested in the outcome of your case as you are. They’re motivated to fight for the most compensation available by tying their payment to your success. Call us today at 702-996-4786 to receive a free consultation.
