How Injury Attorneys are Paid: The Contingent Fee Contract Explained
I often get asked by injury victims how I am paid. They are very concerned that they cannot afford the high hourly rate they hear that attorneys charge. But they soon learn from me that hiring an injury attorney takes no out of pocket money. That is because I work on (and also all injury attorneys I know also work on) contingent fee contracts. What that means is that no money is paid to me up front or as the case progresses. Instead, the contracts signed by my clients spell out that I am paid a percentage of the recovery once the case is finally resolved, either by settlement or by trial. At that time, I receive a portion of the proceeds. The standard attorney’s fee contract also calls for the injury attorney to be reimbursed for any out-of-pocket expenses incurred by the attorney in the case.
So basically, the attorney does not get paid until the end of the case, and the client never has to write a check to the attorney, as it is just deducted from the overall settlement proceeds. At my firm, we provide a detailed settlement breakdown so the client can see and understand all fee and the expenses.
So what happens if the case is lost for some reason and no money is ever recovered? In such instance, the attorney is simply not paid anything for his services and the expenses are just written off. Said another way, the client will owe the attorney nothing.
Because it is never guaranteed that the client will be able to win the case, each case must be evaluated closely and the attorney must decide on his own if the case is worth pursuing. I limit my practice to serious injuries where there is a likelihood of success.
Contingent fee contracts are a wonderful way for everyone to access the civil justice system. Without these types of contracts, it would be difficult to retain an attorney to fight for your rights.
If you would like to discuss hiring the Anderson Law Firm on a contingent basis for a serious injury claim, please call the firm at 817-294-1900.
