In some personal injury cases, attorneys will work on contingency fees. This means that the client has agreed to pay for the attorney’s services, but only if they win the case. Their fee is contingent upon obtaining positive results for the client. If the attorney loses the case and the client doesn’t get any compensation for their injuries, then the attorney doesn’t get paid.
For instance, say that an attorney’s contingency fee was 10% of the final settlement. They sue the other party in court after a car accident. The attorney successfully proves that the other party was negligent and caused the injuries, leading to lost wages, medical bills and many other costs. The other party is found liable for $1 million in costs, and the attorney’s fee is then $100,000.
Why is this done?
The big reason for this is that it removes some of the risk for the client. After all, someone who was injured in a car accident is already facing a lot of financial challenges. Many people put off seeking compensation that they should receive just because they don’t think they can afford to go to trial, to hire a lawyer and much more.
But with contingency fees, there’s no risk upfront. The client can still explore their legal options and fight for their right to appropriate compensation. If they get what they deserve, then they can easily pay the fee out of the total payout. But they don’t have to invest anything upfront, which would be prohibitive for many clients.
Of course, there’s also a risk to attorneys who use contingency fees. If they’re unsuccessful in the case, then they have provided their services for free.
Are you looking into your options after being injured? Be sure you know exactly how the process works, what rights you have and all the legal steps you’ll need to take moving forward.
