After an accident, the cost of hiring a lawyer is often one of the first concerns people have. Between medical bills, time away from work, and other unexpected expenses, paying legal fees out of pocket may not be realistic. That’s why most personal injury attorneys represent clients on a contingency fee basis.
A contingency fee allows you to hire an attorney without paying attorney’s fees upfront. Instead, the attorney is paid only if they recover compensation on your behalf. Understanding how this type of agreement works can help you decide whether it’s the right fit for your case.
What Is a Contingency Fee?
A contingency fee is a payment arrangement in which an attorney’s fee depends on the outcome of the case. Instead of charging an hourly rate or requiring a retainer, the attorney receives an agreed-upon percentage of any settlement or court award they recover for the client.
This fee structure is widely used in personal injury law because it gives accident victims access to legal representation regardless of their financial circumstances. Rather than worrying about how to pay a lawyer while recovering from an injury, clients can focus on their health while their attorney handles the legal process.
Every contingency fee agreement is different, so it’s important to review the terms carefully before signing.
How Does a Contingency Fee Work?
When you hire a personal injury attorney on a contingency fee basis, the lawyer begins working on your case without collecting attorney’s fees upfront. They may investigate the accident, obtain medical records, interview witnesses, negotiate with insurance companies, and prepare the case for trial if a settlement cannot be reached.
If the case results in a financial recovery, the attorney receives the percentage outlined in the fee agreement. The remaining funds are then distributed according to the terms of the agreement after attorney’s fees and any applicable case expenses are addressed.
Because every case is different, your attorney should explain exactly how fees and expenses are handled before representation begins.
What Types of Personal Injury Cases Are Handled on a Contingency Fee Basis?
Contingency fee agreements are common in many types of personal injury claims, including:
- Car accidents
- Truck accidents
- Motorcycle accidents
- Bicycle accidents
- Pedestrian accidents
- Slip and fall accidents
- Dog bite cases
- Construction accidents
- Product liability claims
- Medical malpractice cases
- Wrongful death claims
Whether a law firm accepts a case on a contingency fee basis depends on the facts of the claim and the firm’s policies.
What Are the Benefits of a Contingency Fee Arrangement?
One reason contingency fees are so common in personal injury law is that they make the legal system more accessible to people who might otherwise be unable to afford representation.
Some of the benefits include:
- No attorney’s fees due at the beginning of the case
- The ability to hire legal counsel without paying hourly rates
- More financial flexibility while recovering from an injury
- An attorney whose compensation depends on obtaining a recovery
- The opportunity to pursue a claim regardless of your current financial situation
For many accident victims, a contingency fee agreement makes it possible to seek compensation without adding another financial burden during recovery.
What Are the Differences Between Attorney’s Fees and Case Costs?
People often use the terms interchangeably, but attorney’s fees and case costs are separate expenses. Attorney’s fees compensate the lawyer for the legal work performed. In a contingency fee case, those fees are generally calculated as a percentage of the amount recovered.
Case costs are the expenses associated with building and pursuing a claim. Depending on the case, they may include:
- Court filing fees
- Medical record charges
- Expert witness fees
- Deposition expenses
- Investigation costs
- Accident reconstruction expenses
Every law firm handles these costs differently. Before signing a representation agreement, ask how case expenses are paid and when they will be deducted if your case results in a recovery.
What Happens if My Personal Injury Case Is Unsuccessful?
One of the defining features of a contingency fee agreement is that clients generally do not owe attorney’s fees if no compensation is recovered. That allows injured people to pursue a claim without taking on the risk of paying hourly legal bills for an unsuccessful case.
However, contingency fee agreements are not all identical. Some agreements address litigation expenses differently, so it’s important to understand who is responsible for those costs if the case does not result in a recovery. Your attorney should explain these terms before you decide to move forward.
What Questions Should I Ask Before Signing a Contingency Fee Agreement?
Before hiring a personal injury attorney, review the fee agreement and ask questions about anything that isn’t clear.
Some questions worth asking include:
- How is the attorney’s fee calculated?
- How are case expenses handled?
- Will the fee change if the case goes to trial?
- Who is responsible for litigation expenses if there is no recovery?
- How will settlement funds be distributed?
Contingency fee agreements are typically set out in a written contract that explains how attorney’s fees and case expenses will be handled.
Contact Feller & Wendt, LLC to Schedule a Free Consultation With a Personal Injury Attorney
A contingency fee agreement can make it easier to pursue a personal injury claim without paying attorney’s fees upfront. Before signing an agreement, review its terms carefully and ask questions about attorney’s fees, case costs, and how compensation will be distributed if your case is successful.
If you need help after an accident, contact Feller & Wendt, LLC today. We offer a free consultation at (801) 421-1569 with a trustworthy personal injury lawyer and handle cases on a contingency fee basis.
