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Contingency Fee

What is a contingency fee for a personal injury lawyer?

A contingency fee is the percent the lawyer gets from the winnings of your case.
With a contingency fee, the attorney will only get paid when you are awarded and receive your compensation, meaning you don’t have to pay the attorney out of pocket.

A contingency fee reduces your risk of hiring a personal injury attorney. When you hire a personal injury lawyer you work together to maximize your compensation.

How does a contingency fee work?

When you sign an agreement with a personal injury lawyer usually you agree upon the percentage of the contingency fee. If there is a settlement or a court judgment the lawyer will take the given percent from the winnings and give you the remaining amount after deducting court fees or health insurance liens.

What is a typical contingency fee for personal injury lawyers?

The typical contingency fee for a personal injury lawyer typically ranges between 30% – 40% with 33% (1/3) being the most common contingency fee. 

Examples

Example #1 (Simple) – You have been injured in a car accident. Through negotiation between your hired personal injury attorney at the insurance agency you have accepted a $30,000 settlement. There are no fees on the case and no liens. You have agreed to a 33% contingency fee. You would take home $20,000 tax free and the lawyer would be paid $10,000 from the winnings. The lawyer would distribute the $20,000 to you. 

Example #2 (Complex) – You were hit while riding your motorcycle. The case was not able to be settled between you and the insurance agency. The case goes to court incurring $20,000 in fees related to the trial. You are awarded $250,000 for the accident. You have $50,000 in unpaid medical bills that have a lien on your case.  

 

Personal Injury Contingency fee

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