A contingency fee arrangement is a unique and accessible payment strategy for clients who are unable to cover legal costs upfront. In this type of arrangement, an attorney agrees to take on a case and only gets payment if they win. This type of fee arrangement is common in Florida. Florida is a state that sees a lot of accidents. Florida personal injury lawyers usually charge a contingency fee instead of an hourly rate because not all victims are equipped to pay upfront.
This article will explore everything you need to know about a contingency fee arrangement and the risks involved.
How Does the Contingency Fee Work?
A contingency fee works on a straightforward, structured payment model where an attorney’s fee is contingent upon winning the case. If the client receives a settlement, the lawyer is entitled to a percentage, typically a third or 33% of the total sum.
This percentage may vary according to who settles legal fees, the complexity of a case, and other factors like a sliding scale.
Who Settles Legal Fees?
There are costs associated with a personal injury case, especially if it ends up in a lawsuit. These include:
Filing and court fees
Collecting evidence
Paying for deposition transcripts
An attorney can agree to cover these costs, and the payment will be subtracted from the settlement. The decision of whether an attorney will deduct these costs after or before they take their percentage largely affects the sum you will end up with.
Complexity of a Case
Some cases are simple, and others are complicated. If a case is riskier, an attorney is more likely to request a higher contingency fee. But if the case is simple and has a higher possibility of ending up in a settlement, they could request a lower fee of around 20–25%.
Hourly Agreement
Most attorneys bill by the hour. In some cases, you will need to pay an attorney’s contingency fee according to their hourly rate for the hours dedicated to your case. This is common if the defendant is responsible for covering the plaintiff’s hourly fees.
The second hourly agreement can be mixed. This means that victims cover a portion of their attorney’s hourly payment upfront, and the rest is paid after the settlement. The attorney will also get an extra percentage on top of the remainder, though this is smaller than the average contingency fee.
Tips For Considering a Contingency Fee
Before choosing and settling for a contingency fee, it is important to understand the details to make an informed decision. Here are some tips to ensure you are settling for the right thing:
Understand the agreement before signing, including the percentage an attorney will take.
Inquire about who will settle additional costs like filing fees and expert witnesses. Also, ask whether the attorney charges extra expenses if the case does not succeed.
Assess the attorney's experience to calculate the probability of winning.
Set realistic expectations since a contingency arrangement does not guarantee a win.
By following these tips, you can approach a contingency arrangement more confidently.
Conclusion
Contingency fee arrangements are a great way for victims to pursue personal injury cases with the help of a qualified attorney, even if they cannot afford upfront costs. It allows more victims to get justice and only covers legal fees after getting a settlement. However, before getting into a contingency fee agreement, it is important to understand all the terms and what percentage of your settlement you will part with.
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