Payment of Attorney's Fees

Have you been injured as a result of an auto accident, slip and fall, or medical malpractice? Do you feel you will not be able to afford an attorney to make sure that you are adequately compensated for your injuries?

Contingency Fees

Most attorneys are willing to work out a financial arrangement with you for representation. In personal injury matters, most attorneys will represent you on what is commonly referred to as a contingency fee arrangement. That is, the attorney will be entitled to a percentage of your total recovery as compensation for legal services rendered in your case.

How do contingency fee arrangements work? There are many different variations of contingency fee arrangements. Some attorneys will ask for a specific percentage regardless of the stage at which your case is resolved.

Depends on Work

Many attorneys commonly have a fee arrangement based on the amount of work they must do to handle your case. This fee is usually a gradually increasing percentage based on the stage of your case at the time of the recovery (settlement or judgment).

Under this arrangement, a certain rate is initially set for the "pre-filing" period. During this period the attorney will investigate your case, contact witnesses and insurance companies (if applicable), and will attempt to negotiate a settlement without the need to file a lawsuit.

However, if the efforts to settle the case at this early stage prove futile, the arrangement may provide for an increased percentage if a lawsuit must be filed.

If the attorney is further required to mediate or arbitrate the case, the percentage may increase at that point.

The fee arrangement may also set another rate if the case goes to trial. If an attorney uses a graduated percentage fee arrangement such as this one, this arrangement, and all corresponding percentages, will be disclosed to you before you sign a retainer agreement with the attorney.

The attorney's fees are usually calculated from the total gross recovery before the deductions for other costs that must be reimbursed, such as filing fees, expert witness fees, and medical liens.

Ask Questions

Each attorney has a preferred arrangement for personal injury matters, so it is very important that you completely understand any fee arrangement you enter into with an attorney. A contingency fee arrangement is a contract, and is enforceable against you even if you later change your mind as to the fee arrangement.

Furthermore, some states set certain limitations for attorney fee arrangements. For example, in California, attorneys are limited as to the percentage they can take from a recovery based upon medical malpractice.