Your chances of being involved in an accident aren’t exactly slim. Whether you live in Houston or one of the outlying areas, traffic accidents happen daily. If you’re involved in an auto accident, a lot is going through your mind.
Suddenly, you’re facing unexpected costs like medical bills and vehicle repair costs. The last thing you need to deal with in this situation is upfront attorney fees, even from experienced Houston Injury Lawyer Jimmy Doan.
This is when contingency fees can be a lifesaver, but what are they, and are there any potential downsides? We’ll look at the pros and possible disadvantages of hiring an injury attorney on a contingency fee basis.
What are Contingency Fees?
So, what are contingency fees? Most personal injury attorneys offer their clients the option to pay for legal services using a contingency fee structure. This simply means your attorney is working on your claim with the expectation of receiving pay after winning your claim. If the attorney doesn’t win your claim, you aren’t on the hook for payment.
A simple explanation is your attorney only gets paid when you receive a settlement check. How much does your personal injury attorney get? This depends on the contingency fee agreement. On average, most attorneys receive anywhere from 33% up to 40% of your settlement.
If your contingency fee contract states the attorney receives 40% and your settlement is for $100,000, the lawyer receives $40,000 and you get a check for the remaining $60,000.
Benefits of Contingency Fee Structures
An obvious benefit of contingency fees is you’re not shelling money out to hire a personal injury attorney. For most accident victims, this reduces a lot of their stress. Now, they’re not worried about finding the funds to hire an attorney. Instead, they can relax and focus on their recovery knowing their injury claim is in good hands.
If your injuries are severe enough to force you to miss work, a contingency fee payment structure may be the only way you can afford legal representation.
Motivate Your Attorney
Overall, attorneys are motivated to provide the best legal representation they’re capable of to their clients. However, attorneys are also human, and sometimes payment is a great motivator.
The thought of receiving a significant portion of a personal injury settlement can motivate your attorney to work just a little harder and faster. Remember, your attorney is probably counting on receiving at least 33% of your settlement which can be a significant portion of their income.
This doesn’t mean paying upfront either by the case or hourly isn’t going to get you the same exceptional legal service. Only when your attorney’s fees are based on their performance it tends to provide a little more motivation.
Can Be a Win-Win Solution for You
Imagine how disappointing you’d feel if you were stuck with a hefty lawyer bill after losing your personal injury claim.
Now, on top of your expenses stemming from the accident, you’re also facing legal costs. Depending on your financial situation, the additional lawyer fees can potentially send you deeper into debt. This isn’t a concern when you’re working with an attorney on a contingency fee basis.
You may still be responsible for some administrative charges like court costs and filing fees but these are significantly lower than an attorney’s bill.
If your attorney is successful and you settle your accident claim, everyone walks away happy. You have the funds to cover your damages and your attorney is paid for their hard work.
Potential Downsides of Contingency Fees
Contingency fee payment structures aren’t for everyone. Sometimes, the downsides outweigh the positives.
Depending on the percentage the attorney receives in contingency fees, it can be more than the average hourly rate. This typically only occurs when an injury claim is quickly settled. Your attorney may only need to put in a couple of hours of work and still walk away with 40% of your insurance settlement.
Another potential downside is finding a personal injury attorney willing to take your case. Some personal injury attorneys only take cases they’re pretty sure they can win on a contingency fee basis. Yes, this is a little unscrupulous, but it’s also not illegal. In other words, you can’t force an attorney to work on your case.
These can also be the same lawyers who only accept more difficult cases for a higher percentage of your settlement.
Work with a Reputable and Experienced Injury Attorney
Contingency fees are often the only way some accident victims can afford to hire an attorney. While there are definite advantages to this fee structure, you can also run into a couple of downsides. The best way to ensure these downsides don’t apply to you is to work with a reputable and experienced injury attorney.
Thoroughly reviewing the terms of the contingency agreement and asking questions about any potential hidden costs can help you avoid unexpected surprises and make the most of your legal representation.
