What Is a Contingency Fee in a Personal Injury Case?

What You Need to Know About Contingency Fees

• Contingency fees mean you don’t have to pay anything upfront to a personal injury attorney.
• The lawyer only gets paid if you have a successful case outcome.
• This means you can get legal help regardless of your current financial situation.

If you’re looking for a personal injury attorney, you’ve probably already come across the term “contingency fee” and wondered what it means. It has to do with how and when lawyers get paid.

So, what is a contingency fee? It’s a type of arrangement with an attorney where you don’t have to pay anything unless you win your case. In other words, you won’t pay any cash upfront.

However, there’s much more to a contingency fee agreement than this.

Why Legal Fees Stop Many People From Calling a Lawyer

Attorneys have a reputation for being expensive, so you might be scared to contact one. This fear is entirely understandable. Hiring a lawyer can certainly cost a lot of money in various situations, with legal firms sometimes charging:

• Hundreds (or even thousands) of dollars for a consultation
• Expensive hourly rates
• Fees every time you ask a question

However, this isn’t always the case, especially in personal injury law. That’s because many attorneys operate on a contingency basis.

This payment arrangement makes it easier for those involved in an accident to get the legal help they desperately need.

The thought of paying personal injury attorney fees on top of medical bills, lost wages, and other losses from an injury can be overwhelming. But with a contingency-fee personal injury attorney, you won’t have this additional stress.

How Contingency Fees Work in Personal Injury Law

Under a traditional payment arrangement with a lawyer, you usually pay for their services on an hourly basis or with a flat fee. This means you spend money regardless of whether you win your case.

A contingency fee arrangement is different. An attorney will normally only charge you if your case is successful and you actually get compensation, whether that’s through a settlement or a court win. This charge is typically a fixed percentage of the final amount you receive.

Here’s an example.

Say you file a personal injury claim against a store after slipping and falling on a wet floor, and a lawyer agrees to take on your case on a contingency basis:

• If you lose the case and don’t receive any compensation, the lawyer won’t charge you for their services at all.
• If you win the case and receive compensation, the lawyer may take a fixed percentage from that amount — for example, 30 percent.

Typically, the fixed percentage covers all the work a personal injury attorney does. This might include:

• Investigating your claim
• Collecting evidence
• Negotiating with insurance companies
• Representing you in court if necessary

However, if your case isn’t successful, you won’t have to pay for any of these things.

Further reading: More information about legal fees and expenses from the American Bar Association

Who Pays Case Costs?

Some expenses related to your case might not be included in a lawyer’s contingency fee, such as:

• The cost to file paperwork with the court
• Costs to access medical records and other documents
• The fees that expert witnesses charge for their services

Usually, it’s up to you to pay for these things. However, how you pay them depends on your arrangement with your attorney.

For example, your attorney might cover case costs at first and then deduct them from your final settlement. Alternatively, you may need to pay them upfront.

Who pays case costs is one of the questions to ask a personal injury attorney before working with them.

Benefits of Contingency Fees for Injured Clients

Contingency fees make it easier for injury victims to afford an attorney. Here are some of the benefits of this payment arrangement:

Less Risk

When an attorney works on a contingency basis, they only get paid if you reach a settlement with the at-fault party or win a court award. As a result, you don’t have to pay them if your case doesn’t go in your favor. This reduces the risk of you losing money.

Less Stress

Finding the money to pay a personal injury attorney can be stressful, especially if you have medical bills and other expenses due to your injury. Contingency fees can ease some of this financial pressure and allow you to focus on healing and recovery. You simply pay lawyer fees after the settlement.

One Simple Payment

A contingency fee is usually a fixed percentage of your compensation amount, which makes things a lot less complicated than a by-the-hour payment arrangement. Your attorney won’t bill you by the hour or send multiple invoices at different intervals, so the financial side of things is easier to manage.

How Our Firm Handles Contingency Fees

Here at Kanner & Pintaluga, we know that many people are reluctant to contact a personal injury attorney because they fear how much everything will cost. That’s why we typically operate on a contingency fee basis, where you only pay a lawyer after an accident if they successfully recover compensation for you. (Contingency fees are not permitted in all types of cases.)

Here’s an example:

You’re involved in a car accident that wasn’t your fault, and we agree to take on your case on a contingency basis. We’ll investigate the case, gather evidence, negotiate with the at-fault party’s insurance company, and try to reach a fair and full settlement amount based on your injuries and losses.

One of two things might then happen:

• Your case is successful, and we help you secure a settlement or court award. We’ll take our agreed-upon percentage from that final amount, leaving you with the rest.
• Your case is unsuccessful, and you don’t receive any compensation for whatever reason. In this situation, you won’t owe our firm anything.

As you can see, this payment arrangement significantly reduces risk.

FAQs regarding Contingency Fees

How Do Personal Injury Lawyers Get Paid?

It depends on the type of payment arrangement they offer. Under a contingency fee arrangement, you typically only pay a lawyer’s costs when you have a successful case outcome.

How Much Do Injury Lawyers Charge?

Many injury lawyers charge a fixed percentage of your final compensation amount under a contingency fee arrangement. For example, if you receive a $20,000 settlement, and the law firm charges 30%, they’ll take $6,000 from the amount.

Will I Have To Pay an Attorney if I Lose My Case?

Not typically under a contingency fee arrangement. You only pay them if you receive compensation.

Talk to a Personal Injury Lawyer With No Upfront Fees

There’s no need to be fearful when hiring a personal injury attorney like Kanner & Pintaluga. Contingency fees mean you only pay costs when we actually recover compensation.

We also offer free consultations so that you can have an initial discussion with an experienced lawyer at no cost. Fill out the form to book yours, or call (800) 586-5555.