It is in the best interest of a Personal injury lawyer to do a good job when representing you because they are only getting paid if you win.
Now one might ask what percentage does a personal injury lawyer take? The most direct answer is that it varies. That seems vague, but the percentage a personal injury lawyer takes depends on your case. Whether it is an out of court settlement, or it goes to trial, whether your case is won or lost, the amount of compensation won, all these factors play a role in what percentage a personal injury lawyer takes.
It is therefore difficult to put a specific number based on these circumstances, kindly read on as we dive deeper into understanding what percentage a personal injury lawyer takes.
How does a personal injury lawyer get paid?
Personal injury lawyers are often paid through a contingency fee, this contingency fee is simply the percentage the lawyer is entitled to if the case is won. This is usually an agreed upon amount by both parties and is generally prefered because it’s more affordable.
That is to say, if the case is lost, the client is not obligated to pay the lawyer any fee. If you chose the contingency fee option, you will owe the agreed-upon percentage no matter how long it takes to win the settlement or the amount won.
Is there a standard contingency fee?
One might be moved to ask if there is a standard contingency fee accepted universally. However, a contingency fee is a percentage rather than a fixed amount. This is because it is difficult to know the exact amount of money a client will receive in a settlement or trial.
A personal injury lawyer’s most common percentage is 33% of the settlement amount and 40% if a lawsuit goes to trial.
What Percentage Does a Personal Injury Lawyer Take?
Well, here we are. The percentage a personal injury lawyer takes is usually discussed at your first consultation. This is when your lawyer will evaluate your case to decide if it is worth taking on. This evaluation is done to assess the possibility of success and an estimation of how much effort will be needed in your case to achieve victory.
You might meet some lawyers who after evaluating your case will tell you upfront that you can handle it on your own. Good personal injury lawyers will tell you this upfront. The evaluation may also lead the injury lawyer to say your case isn’t viable.
If your personal injury attorney decides to take on your case, they will be paid directly from your settlement payment when the law firm receives it. It is important to remember personal injury attorneys are only paid if and when they collect on your behalf.
Now that you understand how a personal injury lawyer’s fees relate to a win and the possible percentage you pay, this should help get rid of any nervousness you have when seeking assistance.
In general, most personal injury lawyers prefer to work on a contingency fee basis. Since the contingency fee is a certain percentage of the amount that is to be recovered for their client, they will recover their fees from getting a verdict or settlement which greatly favour their client.
This method of payment is very beneficial for persons who have suffered an injury, because the lawyer is paid only when he he settles your claim, or wins the case for you. If there is no settlement, you will not be obligated to pay the attorney and all legal expenses will be borne by him.
There is no set percentage that has been defined for lawyer fees. These percentages may vary from region to region and from state to state. Typically, you may find that most personal injury attorneys in same state tend to work on the same percentage basis.
However, you can expect to see contingency fees between 30% to 40% of the compensation that is awarded to you. No matter the percentage, it is reasonable to expect that both parties which is the client and the personal injury attorney will agree on a particular number before he takes on your case. In fact, it is highly recommended that you are clear on the percentage that is owed to the attorney before you hire a lawyer for your case, or sign on any kind of documentation.
You will be better of clarifying with your personal injury lawyer whether the percentage will be calculated on the gross amount of compensation, which is the amount before removing attorney fees, legal expenses and other costs, or the net compensation which is the money that is left over after you remove all expenses and costs.
In some cases, your lawyer may charge 33% for a case which settles out of court or 55% for a case which goes through to trial and is therefore more expensive and time consuming to take on.
Many lawyers use this two-tier fee structure because of the significant workload of an out of court settlement case and a case which goes to trial. Some states like New York provide mandatory limits on legal fees for practices such as personal injury cases taken on contingency bases.
Lawyers are required to document all payment agreements in writing, by form of a retainer agreement and both parties will be required to sign. To charge on a contingency fee bases, New York statutes mandate the personal injury lawyer to use a sliding fee scale that reduces the percentage the lawyer takes as the monetary value of the settlement goes up.
What Type Of Expenses Do Personal Injury lawyers Charge from your Settlement?
Learn the likely expenses your personal injury lawyer will charge you. The percentage a personal injury lawyer charges can only come from the net amount of the settlement after deducting this service charges.
Below are some of the most common expenses that you lawyer may charge you:
- Court costs and filing fees
- The cost of obtaining certified true copies of records
- Shipping, mailing and copying costs
- Travel costs
- Paying for the services of relevant experts and investigators
Do not be alarmed, your legal firm will provide you with a breakdown of all this expenses on your retainer agreement. Once all have been settled from the gross settlement, they will take their agreed percentage and hand your settlement over to you.
CONCLUSION
You can see that the percentage received by a personal injury lawyer varies from case to case and across different states. No two cases are the same and the work involved can be a big factor in the percentage your personal injury lawyer receives. Always shop with different lawyers to pick the best choice to represent you.
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