Although some lawyers need retainers and charge hourly fees, most personal injury attorneys work on a contingency fee arrangement. This implies that these lawyers are only compensated if the injured victim obtains a monetary award because their personal injury lawsuit has been won or settled.
In such an instance, the attorney is entitled to a certain percentage agreed upon by both the client and the attorney. If there’s no settlement or compensation, the accident victim is often not required to pay any fees.
Getting legal counsel is one of the wisest things you can do if you find yourself among the millions of Americans involved in accidents. However, before contacting an attorney, it is important to seek medical attention since medical bills can be used as evidence in your case.
Here are the benefits of a contingency fee structure.
1. No upfront fees
Most people who suffer after an accident may not be able to afford to hire the best legal counsel because of several issues. Not working with an attorney in your personal injury claim may not allow you to get justice and get fair compensation. However, a contingency fee arrangement where you don’t need to pay your attorney upfront fees changes that.
Contingency fees are particularly beneficial since they enable adequate legal counsel in many cases when someone has been injured because of another person’s negligence but cannot afford attorney expenses. Instead, you’ll pay after the attorney has recovered your settlement funds from the person at blame or their insurance provider.
2. Minimal financial risk
Another advantage of adopting a contingency fee agreement is that if things don’t go as planned and your claim is unsuccessful, you won’t have to worry about paying a high attorney’s fee. However, you may still be liable for specific administrative fees in some situations.
You should always have a written copy of your fee agreement to refer back to it to ensure you understand the arrangement between you and your attorney precisely and how much you agreed to pay.
3. An incentive for your attorney
Lawyers who operate on a contingency fee arrangement have the incentive to work as hard as possible to assist you in achieving a good result. Since your attorney will be paid once you collect, and the amount your attorney is entitled to be determined by the magnitude of your award, your attorney will be highly driven to do everything necessary to secure you the best possible outcome.
Your lawyer will analyze your case before agreeing to represent you on a contingency fee. The lawyer may hesitate to provide a contingency fee if the case has issues. When a lawyer accepts a contingency fee case, they typically have a high level of confidence in the outcome.
4. Increase access to justice for the less fortunate
Access to justice has long been a challenge in the legal profession. According to a recent LSC study (streamed live), as many as 92% of civil legal challenges experienced by low-income Americans during the epidemic’s early years got insufficient or no legal aid. People who seek legal assistance but cannot pay it are often left without options.
A contingency fee arrangement is beneficial to such victims who can’t afford to afford a personal injury attorney. Since you only pay your lawyer when you get a settlement.
5. Motivates your attorney
It motivates your attorney to do everything possible to ensure a successful outcome of your case.
Since the attorney assumes most or all of the financial risk, they will be motivated to win and recover the amount they used.
6. You can negotiate the contingency fee
Your lawyer’s contingency fee is negotiable. Moreover, the law encourages the negotiation of contingency fees depending on the case’s complexity, the likelihood of success, and other factors.
These are just some of the great benefits of the contingency fee. The most important thing to remember is that this fee structure allows access to justice regardless of financial status.