Contingency Fee Agreements
Very often we can be familiar with a word or term, and even use it in conversation, without necessarily understanding its exact meaning. In most circumstances, this is not a big deal or something to be concerned with. However, when you are dealing with legal matters, understanding exactly what you are agreeing to, or signing, is of paramount importance. One of the most frequently used terms by Personal Injury Attorneys is “contingency fee,” e.g., “we handle our cases on a contingency fee basis.” They usually include some type of tag line, like “You don’t pay unless we recover monetary compensation for you.” It makes “contingency fee” sound extremely simple, when in reality, there are many complexities that are tethered to contingency fee agreements.
The definition of “Contingency Fee”, according to Cornell Law School, is, “a form of payment to a lawyer for his/her legal services. In contrast to a fixed hourly fee, in a contingent fee arrangement lawyers receive a percentage of the monetary amount his/her client receives when they win or settle their case.”
One of the more obvious questions about this arrangement is how much percentage will the client have to pay after their case is won? Unfortunately, this is not always included in the law firm’s marketing material, but should be clearly stated in their Retainer Agreement. This is one area that should be discussed and the client should receive a clear explanation of what the exact percentage owed will be and on what basis, before retaining the law firm.
Also, there is such a thing as a “sliding scale” contingency fee agreement, where the starting percentage can go up as the case continues on. The amount of percentage of this sliding scale should be clearly itemized and explained to you before signing the Agreement, e.g., in the event that suit is filed and an Appeal is taken from the Trial Court by either side, or if a garnishment or any proceeding after judgment has to be brought to collect any part of the judgment.
One final area that you should ask about is if there are any “costs” associated with the contingency fee agreement. “Costs” which are rarely discussed, are the expenses that are incurred during the course of your case. These can include filing fees, witness fees, subpoenas, depositions, medical reports, etc. Attorneys may not ethically bear such costs of litigation which are expected to be reimbursed and paid for by the client. Most often, lawyers will deduct these “costs” from the amount you are awarded.
Lastly, in some cases, if nothing is recovered, the law firm will receive no fee for their services and the only expenses you will be held responsible for are the court costs and other out of pocket expenses such as photocopies, faxes and telephone incurred for the prosecution of the claim.
These are all extremely important questions that should be discussed in detail with the Personal Injury Attorney you decide to hire.
Hilton & Somer, LLC: Trusted & Experienced Personal Injury Attorneys
If you are looking for a reliable Personal Injury Attorney you can trust to handle your accident case, Hilton & Somer is here to fight for you! Let our experienced attorneys guide you through this challenging stressful period and legal process and get you the maximum compensation you deserve. All cases are handled on a contingency fee basis!
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References for “Contingency Fee Agreements”:
