If you’ve been injured in a car accident, you may be hesitant to hire a lawyer due to potential costs, especially with compounding medical bills and wages lost. However, what many people don’t understand is that almost all personal injury lawyers bill clients on a contingent basis, meaning there is no payment required up front until a verdict or settlement is received. In this blog, we will be explaining what a contingent fee is, how it works in a personal injury case, and what to look for in a contingency fee agreement before you sign.
What is a Contingency Fee?
A contingency fee is a payment arrangement in which a lawyer agrees to represent a client without charging the client any upfront fees.
If a lawyer is being paid on a contingent basis, they receive a percentage of the money recovered if a settlement or court judgement has been reached after representing their client.
A contingency fee is used very commonly in the legal world as it makes legal representation accessible for anyone, no matter their financial standing, and motivates the attorney to get the most compensation possible for their client.
How Does it Work in Personal Injury Cases?
In Michigan, almost all personal injury cases are run on a contingent basis. As mentioned above, this means that the client doesn’t have to pay any upfront legal fees until the attorney is able to successfully recover compensation for their client through a settlement or trial verdict.
The standard fee for personal injury cases in Michigan is 33 ⅓ %, meaning that if/when the attorney is able to get compensation for their client, he/she will receive 33 ⅓ % of the total compensation rewarded. If there’s no recovery, the client owes $0 for attorney services.
What to Look for in a Contingency Fee Agreement?
Even though a contingency fee agreement may seem convenient, it is important to review the agreement before signing on the dotted line.
When reviewing a contingency fee agreement, your first check should be to make sure it clearly states the percentage that the attorney will take if you win. In Michigan, this percentage should be no more than 33 ⅓ %. Also, make sure the agreement outlines exactly what the attorney is going to do for you (negotiations, filing suit, trial, etc.) during the scope of representation.
Next, make sure that the agreement states that you won’t owe anything to the attorney if you don’t win, and gives you an understanding of what happens if you were to fire the attorney in the “termination clause”.
Be sure to also look for details on whether case expenses (like filing fees or expert witnesses) are deducted before or after the attorney’s fee is calculated.
Lastly, the agreement should outline whether or not you are going to be responsible for any outstanding costs before the case is settled as some attorneys charge their clients before receiving a verdict or settlement.
These are all very important aspects of a contingency agreement that must be checked before you decide to hire an attorney as failing to do this may be detrimental to your case as well as your bank account.
Get David Get Paid
If you or anyone you know is injured as a result of someone else’s negligence, don’t hesitate to call the experienced team of injury lawyers at Femminineo Law. With over 100 combined years of experience in the field, we will happily review/explain every aspect of our contingency agreement and welcome any questions that you may have. Unlike many other law firms, we will not make you pay a dime in expenses until we win. Don’t face the aftermath of your injury alone, call Femminineo Law at 855-65-CRASH or visit getdavidgetpaid.com for a free consultation today!
