If you have ever considered hiring an attorney, you may wonder how they make money. Terms like contingency fee, retainer, and pro bono might seem confusing at first. It is helpful to understand the legal process, including attorney compensation. Many personal injury lawyers operate on a contingency fee basis. This type of arrangement means the lawyer only gets paid if they recover money for the client. Recovering compensation can be accomplished by a jury award or through a settlement.
What Is a Contingency Fee?
A contingency fee is a type of payment arrangement where the attorney’s fees are dependent upon the success of the case. In other words, if the attorney doesn’t win your case, you won’t owe any fees. This arrangement aligns the interests of the lawyer and the client. Both the lawyer and client are working towards the same goal. Both have an interest in maximizing compensation. A contingency fee also helps everyone access the justice system. Our civil legal system isn’t just reserved for wealthy people. By offering a contingency fee arrangement, personal injury lawyers level the legal playing field. No matter how much money is in your bank account, you can afford to hire a lawyer on a contingency fee basis.
How Much Will You Pay in a Contingency Fee Arrangement?
The contingency fee is typically a percentage of the final settlement or court award. In most personal injury cases, this percentage can range between 33% to 40%. The ultimate percentage depends on the case and how far it proceeds in the process. Your attorney should clearly explain the fee structure before taking on your case. They should also ensure that the fee agreement is clearly explained and written. If your case settles before a lawsuit is filed, the contingency fee percentage may be on the lower end. However, if your case goes to trial, the fee may be a little bit higher because of the additional time and resources involved.
No Fees Unless You Win
If your personal injury lawyer is not able to recover money for you, it generally won’t cost you anything. This is one of the major benefits of working with a personal injury lawyer. Injured clients do not have to risk anything by agreeing to a contingency fee. You also won’t have to worry about paying hourly fees or upfront costs. The personal injury lawyer will take on all the financial risk. Plus, the attorney will only get paid if the client receives compensation for their case. It’s a win-win situation.
What About Expenses and Costs?
While attorney fees cover the time a lawyer spends on your case, expenses and costs are different. Expenses refer to the out-of-pocket costs incurred during the legal process. These expenses can include:
- Court filing fees
- Deposition and transcript fees
- Costs for expert witnesses and investigators
- Medical and police reports
- Trial exhibit preparation
- Travel expenses
These costs are often advanced for clients. This means the lawyer will pay for these expenses as they arise but will be reimbursed out of your settlement or court award. It is important to note that your contingency fee may be calculated based on your total settlement amount before deducting expenses. Some arrangements may deduct expenses first and then calculate the fee. Either way, your personal injury lawyer should clearly explain how expenses will be handled during your initial consultation.
Tiered Contingency Fees vs. Hourly Fees
Some personal injury lawyers may offer an hourly fee structure, but this is not common. Hourly fees can vary. To pay an hourly fee, you might be expected to compensate a lawyer to the tune of hundreds of dollars per hour. While an hourly fee arrangement can work for certain situations, it requires the client to have the funds to pay for the legal services incurred. For most people, a contingency fee arrangement is a more practical option.
Discuss Fees and Costs Upfront
Transparency is crucial. During your free consultation, all aspects of the fee arrangement and how expenses will be handled should be explained. Your legal team should make sure you fully understand the agreement before moving forward to avoid any surprises down the line. If you or a loved one has been injured and needs experienced legal help, contact a personal injury lawyer today. Doing so can help you restore your life and recover the compensation you deserve. Schedule your free consultation today.
Contact the Utah Personal Injury Lawyers at Parker & McConkie Today
For more information, please contact an experienced personal injury lawyer at Parker & McConkie to schedule a free initial consultation today. We have 5 convenient locations in Utah, including Midvale, Salt Lake City, Ogden & Provo, UT. Clients can also visit our offices in Idaho Falls, ID & Rock Springs, WY.
We proudly serve Weber County, Utah County, Salt Lake County in Utah, Bonneville County in Idaho, Sweetwater County in Wyoming , and its surrounding areas:
Parker & McConkie Personal Injury Lawyers – Salt Lake City Office
466 S. 500 E., Suite 100,
Salt Lake City, UT 84102
(801) 851-1202
Hours: 24/7
Parker & McConkie Personal Injury Lawyers – Midvale Office
7090 Union Park Ave, #160,
Midvale, UT 84047
(801) 845-0440
Hours: 24/7
Parker & McConkie Personal Injury Lawyers – Ogden Office
2510 S Washington Blvd, Suite 160,
Ogden, UT 84401
(385) 402-8187
Hours: 24/7
Parker & McConkie Personal Injury Lawyers – Provo Office
37 E Center St, Suite 300,
Provo, UT 84606
(801) 876-4107
Hours: 24/7
Parker & McConkie Personal Injury Lawyers – Rock Springs Office
531 N Front St,
Rock Springs, WY 82901
(307) 205-7400
Hours: 24/7
Parker & McConkie Personal Injury Lawyers – Idaho Falls Office
2235 East 25th St. Suite #280,
Idaho Falls, ID 83404
(208) 418-0633
Hours: 24/7