The last thing that you would want to think about when you are involved in an accident is how to afford legal representation. Luckily, the majority of personal injury attorneys work on the so-called contingency fee basis a business model that helps clients to seek justice without any expensive advance fees. The knowledge of the working of this system can guide you towards making wise decisions and proceed with the case without fear.
What Is a Contingency Fee?
Contingency fee refers to the fact that your personal injury attorney from Chadi & Ibrahim LLP is only made to receive the money if they can win you the compensation whether in a settlement or a court judgment. The lawyer’s fee is not on an hourly basis or requires any form of payment prior to handling your case, but rather on winning.
The lawyer is usually paid a percentage of the compensation which is normally between 30% to 40% of the entire amount the client gets. In case the case does not translate into financial prize, you do not owe the lawyer any time/effort. This is a way of making sure that the lawyer is more than willing to make the best out of the situation as his or her compensation is based on your result.
The reason why Contingency Fees are in the best interest of Clients
Contingency fee model has a number of benefits to the victims of an injury. One, it removes the financial cost of an initial payment of legal services. There are quite a few individuals who are reluctant to employ an attorney since they are afraid of large legal fees but with a contingency fee, any individual with or without a lot of money can seek the services of a competent lawyer.
Second, it guarantees congruency between the client and attorney. This is because both of you gain out of a winning claim, and therefore, your personal injury lawyer will have a strong incentive to ensure that you are well compensated. This would also promote transparency, trust, and accountability during the case.
Contingency Agreement What is Included in a Contingency Agreement
An effective contingency fee agreement will not only outline the percentage of a lawyer but also other possible costs related to a case. These may include:
- Court filing fees
- Expert witness costs
- Fees in medical record retrieval.
- Expenses in investigation and documentation.
In most instances, the attorney will cover such expenses and recoup them in the event of eventual settlement. You should also make sure to read your contract thoroughly and broach such points during your first meeting so that you are not confused in the future.
When Contingency Fees Apply
In personal injury claims, contingency charges are most frequently used, including:
- Car accidents, truck accidents, and motorcycle accidents.
- Slip and fall incidents
- Medical malpractice
- Workplace injury claims
- Product liability cases
Basically, any case where the victim is asking financial compensation to be paid by a negligent party would qualify to have a contingency fee arrangement.
What Will Happen in Case of Loss of the Cas
In the case of a loss, you are not likely to pay any attorney fees to your attorney. Nevertheless, you may still have out-of-pocket costs that you have to pay depending on your contract, like the cost of filing or hiring an expert. This needs to be explained in writing and never sign your contract without clarifying this.
Final Thoughts
Learning about the way in which personal injury lawyers receive compensation in form of contingency fees contributes to the empowerment and enlightenment of the clients. Such payment system opens the gate of justice to those who would not have otherwise afforded representation in court. Contingency fees make the lawyer fight relentlessly to secure the compensation you are entitled to because their personal gain is pegged on the success of the lawyer.
When you have been injured because of the negligence of another person, hire a personal injury attorney, one who operates on a contingency fee basis, as this may be the answer to the case being won and making a fortune without taking the hassle of paying money to the attorney.
