You’ve probably seen law firms that advertise with slogans that say “no win, no fee” or “we don’t get paid unless you do.” These are just different ways of saying that they work on a contingency basis.
However, if you’re considering working with a personal injury lawyer, you might wonder — if we win, what exactly is the fee? How do I come up with the money to pay the contingency fee? Here’s an in-depth look at contingency fees and how they work.
What Is a Contingency Fee?
Almost all personal injury law firms work on contingency, which means they only receive compensation if you win compensation for your case. The fee they collect is called a “contingency fee,” and it’s generally quoted as a percentage of the total amount recovered in your case.
If you receive a settlement check or a jury verdict, it is first sent to your lawyer’s office. Your attorney will subtract their fee and send you the rest. If you don’t win your case, you pay nothing in attorney’s fees.
Personal injury lawyers generally don’t publish details of their contingency fee agreements online. However, most attorneys do offer free consultations. If you’re considering working with a given lawyer, ask about their fee agreement.
You should never agree to work with a particular law firm or attorney until you’ve made sure you fully understand how much you might owe in the event of a successful outcome.
Is There a Cap on Contingency Fees in Louisiana?
Some states set caps or limits on the contingency fee a lawyer can charge. Louisiana is not one of them, but the state does require that the fee be “reasonable.” The law specifies that several factors must be taken into account when determining if a fee is reasonable:
- How much nearby lawyers charge for similar services
- The time, skill, and effort required of the lawyer
- Whether working on the client’s case will prevent the lawyer from taking on other cases
- The timeframe the lawyer has to complete the work
- The results obtained
- The nature of the professional relationship between the lawyer and the client
For an average case, personal injury lawyers may charge a contingency fee as low as 33% of total compensation, although that figure can vary significantly from one firm to the next.
However, in the rare instance that a personal injury case goes all the way to trial, an attorney might charge more. Trial involves significantly more time, effort, and expense on the lawyer’s part. There’s also an element of risk — it’s entirely possible to prepare a strong case, go to trial, and walk away with nothing.
In recognition of the increase in effort and risk, many lawyers charge contingency fees greater than 33%. Ultimately, most cases will fall between 33 and 40%.
The Many Benefits of Contingency Fee Arrangements
For both you and your lawyer, the contingency fee system has a number of different advantages:
Your Interests and Your Lawyer’s Interests Are Aligned
If your lawyer billed hourly, you might understandably worry about the time it took to prepare the case. Contingency fee arrangements are an incentive for your attorney to pour themselves into your case. The better the outcome they can achieve for you, the more money they’re likely to make.
You Don’t Have To Add to Your Financial Stress
If you’ve just been severely injured, you might feel tightly squeezed between piling medical bills and lost income. If your lawyer works on contingency, you don’t have to worry about going into debt or worsening your financial situation to pursue a claim.
You’ll Know Your Case Is Legitimate
When lawyers work on contingency, it saves the court system from becoming clogged with frivolous lawsuits. When an attorney represents you, they take on significant risk because they know they’ll end up empty-handed if you lose. This means that attorneys tend to be very picky about which cases they take.
There’s no way to guarantee a win in a court of law. However, if an attorney accepts your case, consider it a good sign — personal injury lawyers rarely, if ever, take on cases they believe they’ll be unable to win.
Do Clients Have To Pay for Anything During the Process?
When your lawyer works on contingency, you don’t have to pay anything upfront to hire them. However, some offices may bill you for incidental case expenses like these:
- Filing fees
- Costs to obtain medical records and police reports
- Costs of hiring expert witnesses
- Deposition fees
Some law offices may ask you to pay for these out of the compensation they secure for you, while others may handle them differently. At your consultation, make sure to ask how a firm handles smaller costs like these.
Contact a Metairie Personal Injury Lawyer for a Free Consultation
Navigating life after a serious injury can be extremely difficult. Having the right attorney can help. At Law Office of John W. Redmann, L.L.C., we’re here to help accident victims pursue fair compensation for the harm they’ve faced. Get in touch with our Metairie personal injury lawyers in Louisiana today or call us at (504) 500-5000 to schedule your free consultation.