Personal Injury Lawyer Fees

After an accident, it’s easy to avoid contacting a lawyer because you are worried about fees. In reality, most personal injury lawyers work on a contingency fee basis, so you don’t have to pay any legal costs or fees upfront.

Below, you’ll learn more about how personal injury lawyer fees work and what you should know before hiring a lawyer.

Contingency Fee Basics

A contingency fee structure allows you to hire an experienced lawyer without paying expensive legal costs upfront. After your case is settled or the final verdict is returned, the lawyer’s fees will be subtracted from the settlement.

How Contingency Fee Percentages Work

Contingency fees are usually established based on a percentage, which may vary depending on the complexity of your case, how much your case is worth, and the likelihood of you winning.

Contingency fees are typically between 25% and 40%, but it is sometimes possible to negotiate. In most cases, the lawyer will receive one third of the settlement while you’ll receive two thirds.

Settling Before You File a Lawsuit

Depending on what stage your case is in, fee limits can change. After your injury, your lawyer will send a demand letter to the responsible party explaining your injuries and demanding payment.

If your case is strong, the responsible party will usually make a counteroffer which will then be negotiated until a settlement is reached. If a settlement occurs prior to filing a lawsuit, the lawyer usually cannot take over 33% of the settlement.

Settling After You File a Lawsuit

If the party responsible for your issues does not take the negotiations process seriously, or doesn’t answer the demand letter, you will have to file a lawsuit. In some provinces where the settlement happens after you file a lawsuit, your lawyer can receive up to 40% of the total.

Sometimes people don’t want to accept a pre-lawsuit settlement offer, but it’s important to remember that personal injury lawsuits get more expensive as they progress. Make sure you understand the potential cost of your case.

Additional Costs and Expenses

Additional costs and expenses include medical records, police reports, expert witness fees, and even postage and filing fees, among others. It’s common for a personal injury lawyer to pay the costs and expenses and then deduct them from your portion of the settlement once you receive it. Some lawyers, however, will charge you for these expenses as they occur. For costs you are responsible for paying, remember that your case will probably not move forward until you make payment.

Costs and expenses can be quite high, especially if your case goes to trial.

Getting Your Settlement Check

Settlement checks are usually sent to lawyers so they can make sure they get paid for their services. Once they receive the check, they will get in touch with you and tell you about the costs, fees and expenses that will be deducted from your check.

If there are any charges you disagree with, you can dispute them. The lawyer must leave this amount in a trust account until the fee issues are settled.

If you have questions for your lawyer about fees, it’s best to ask them upfront during your consultation. This way you can ensure that you’re comfortable with the fee structure and that you fully understand how it will work.

If you’ve been injured in an accident, book a consultation with a personal injury lawyer to discuss your case.