Whether you were injured in an accident recently or are working your way through a claim about your personal injury, one question could be, “How much does an attorney take from a settlement?” Knowing how fees and payment structures related to personal injury cases work could be the cornerstone to fair compensation, while being fully informed about how much of your settlement is going toward your lawyer’s fees.
The following article will cover in detail all that one needs to know about lawyers’ fees in a settlement, common methods of payments, and what one can expect from a personal injury lawyer.
Understanding Lawyer Fees in a Settlement
Contingency fee arrangements are customary for attorneys handling personal injury settlements. This simply means that attorneys are paid only if a settlement is obtained or the case is won in court.
The contingency fee is a percentage of the amount received in settlement, for which you are not liable to pay any out-of-pocket expenses in advance. If your attorney does not win your case, then he does not get paid.
In fact, the usual percentage of contingency fee ranges between 33% and 40% of the total amount of settlement. This, however, may depend on the complexity of the case, expertise of the lawyer, and jurisdiction in which the case is tried.With some lawyers, it is cheaper if the case settles out of court, while with others, it will be more expensive because it went into trial due to the time and resources that were spent.
Breakdown of Lawyer Contingency Fees
How does a contingency fee work? Let’s make it a bit more concrete: suppose that you receive a $100,000 settlement of the claim on account of the car accident. Your attorney receives 33% of the settlement as his or her fee-$33,000-leaving you with $67,000 if he or she has agreed to accept a 33% contingency fee.
Other additional charges might include fees for filing court charges, expert witness fees, and other administrative or court charges that pertain to the case. These costs are usually subtracted from your settlement after your lawyer takes their contingency fee. This is important to bring up with your attorney in advance so you are not shocked at the end when your settlement is reached.
Factors Affecting Lawyer Fees in a Settlement
The percentage a lawyer takes in a settlement can be influenced by several factors, including:
- Complexity of the Case: The more complex a case, with imminent extensive investigation, expert witnesses possibly, and taking more time, the higher the contingency percentage may be.
- Resolution Stage: In this case, the settlement out of court that is evidenced within the shortest time will fall on the low scale for contingency fees, while those cases that involve litigation can see the lawyer raise his fee, considering the amount of time and resources used to prepare for trial.
- Jurisdiction: Some states have specific laws and regulations regarding contingency fees, and it may be that a contingency fee through an attorney is capped. Understand the state-specific rules that may apply to your case.
- Lawyer’s Experience: More experienced lawyers, who have already made themselves more successful in the court of law, would charge higher percentages of the claim due to the expertise they bring into the case. Paying more money out for a lawyer who has already proved their success rate in similar cases is often worth it.
Average Fee Structures for Personal Injury Lawyers
Most personal injury lawyers are contingency-based; however, other fee arrangements may apply in certain circumstances:
- Flat Fee: An attorney might use a flat fee for a specific service. A good example would be the preparation of a settlement demand letter. It is less common in the field of personal injury.
- Hourly Rate: This is similar to, but sometimes instead of using a contingency fee, a personal injury lawyer will work on an hourly rate with you. That basically means the attorney is going to bill you successfully for all hours worked on your case. This agreement is used usually if the case is improbable to settle, or if the verdict may not be returned in the favor of the defendant.
- Retainer Fee: It is the fee that is paid directly to the attorney in advance to secure his or her services.This type of fee is never used in personal injury cases. In other types of legal issues, this may apply.
What to Expect When You Are Working with a Personal Injury Lawyer
When you are retaining the services of a personal injury attorney, you will need to know how much it will cost you when you win your case. You will want to ask, during the initial consultation, questions in regard to fee structure, who pays for case-related expenses, and what the settlement percentage is the attorney takes from it.
A good attorney will provide a written fee agreement that shows what the per cent is for contingency, any more costs that may be applied along with how those costs are to be taken out of the settlement. This would help in guaranteeing complete transparency regarding what one is agreeing to and avoiding misunderstandings later on in the process.
Common FAQs About Lawyer Fees in a Settlement
Q: What Percentage Does a Lawyer Take in a Settlement?
The general percentage that any attorney takes in a settlement is usually within the range of 33% to 40% of the total amount. Obviously, that amount should depend on the case complexity, the experience of the lawyer, and whether it will be taken to trial or not.
Q: Are There Any Other Extra Costs Besides the Contingency Fee?
Yes, there can be other costs to your matter. These may include court filing fees, expert witness fees, medical record retrieval costs, and couriers/administrative charges. These are normally deducted from the settlement amount after first deducting the lawyer’s contingency fee.
Q: Do I Have to Pay My Lawyer If I Lose My Case?
If your attorney takes the matter on contingency, you will not be responsible for his or her attorney fees in the case of a loss. You could be obligated to pay certain out-of-pocket expenses that arise in the case itself, depending on your agreement with your attorney.
Q: Can I Negotiate the Contingency Fee With My Lawyer?
Sometimes, you might be in a position to negotiate the contingency fee with your attorney. It is best discussed in an initial consultation what the fee structure is and if, based on the specifics, flexibility could be considered.
The Importance of Transparency in Legal Fees
You elicit transparency, per se, when you hire a lawyer for your case in personal injury. Understand the fee agreement before signing on. A good attorney takes the time to explain his fees to you, including what the percentage of contingency is and with any extra costs subtracted from your settlement.
Being aware of the legal fees can be stress-reducing or help one avoid any surprises when it is time to get the settlement for those affected by an accident. If there is anything that you are not sure about concerning your lawyer’s fee, make sure you ask questions and get your bearing.
For instance, if you have other legal issues or uncertainties regarding certain matters such as property damage, you might refer to our guide relating to Do I Need Home Property Damage Lawyers?
Conclusion
It’s terribly important to know how much the lawyer deducts when a settlement is reached. Most personal injury lawyers take on cases on a contingency fee basis, whereby they receive payment only when they win. While the contingencies most lie in the range from 33% to 40%, each additional cost should be clearly conveyed.
Be forthcoming with your attorney regarding how much it costs to retain their services. This way, you get a written fee agreement from them. This will make it easier to avoid surprises and give you peace of mind while going through this legal process.
Please do not hesitate to contact us today for a consultation regarding your legal fees or in developing a personal injury case. Our mission is to educate you about your rights and to pursue the compensation that you deserve.
For further information on how to handle personal injury cases or to understand more about your rights, check out our article on here entitled Common Personal Injury Questions in New York State.
