Contingency Fees for Personal Injury Attorneys

Contingency fees are the payment arrangement in which an attorney only gets paid if they can successfully recover compensation for their clients. This payment processing technique is necessary for people living in Stockton who cannot pay the hefty amount to hire a skilled attorney. A Stockton personal injury attorney also operates on a contingency fee basis and helps to make legal services available to those who need them the most.

Structure of Contingency Fees

The attorney charges a fee upon winning the case. In contingency fee theory, the traditional method of charging an hourly fee or requiring an upfront retainer is not followed. Most commonly, the contingency fee is calculated as a percentage of the total amount recovered either through settlement or after winning a litigation.

Clients will not have to worry about spending out-of-pocket for legal representation. In cases where an attorney fails to win the case, the client owes nothing in return for their services. 

Contingency Fee for Pre-Litigation Settlement

Attorneys will try to settle cases outside of the courtroom. This will facilitate negotiation between the parties and reach a fair settlement amount. In this case, the formal filing of a court case is not done, and a lawsuit is not claimed. 

The parties will reach a mutual term to settle the claim amount. In pre-litigation settlement, the attorneys try to negotiate between the parties, which involves less manual labor and results in a faster settlement. The contingency fee is lower if the parties settle before the litigation.

Contingency Fee for Litigation and Trial 

The contingency increases if the case goes to litigation or trials. The attorneys will build up the case, file the lawsuit, and represent their clients. The higher percentage goes for contingency fees, as the attorney will invest more time and energy into the case. 

However, if the litigation process fails and a judge’s verdict is given against the victim before the case goes to trial, the attorneys are not paid for their services. It is important to note that the attorneys will only get paid if the case reaches a fair settlement for the client.

Components of Contingency Fee Agreement

A contingency fee agreement is made and signed between an attorney and the client. It states all the mutually accepted terms and conditions under which an attorney will be paid. It is a legally binding document signed and acknowledged by the lawyer and the client. 

After winning the case, the agreement will clearly state the percentage of the recovery amount that will be paid to the attorney as a contingency fee. The contract will also state how attorneys spend on filing fees, court costs, expert witness fees, and charges for obtaining medical records.

The agreement will provide a concise outline of the roles and responsibilities of an attorney in case representation and settlement. It will include every detail, from conducting investigations to representing the client in court. 

Benefits of Contingency Fee Structure

Contingency fees allow individuals to pursue compensation without the burden of upfront legal costs. Since the percentage of the contingency fee is linked to the total amount recovered, the attorneys will work diligently on the case. 

Even those with limited resources can hire an expert to secure the best possible outcome from the case. The most beneficial part of the contingency fee is that the client will not have to pay any legal fee if the attorney fails to win the case and claims any settlement amount for their clients. 

Contingency fee arrangements balance the interests of the attorney and the client, as both sides are vested in reaching the highest feasible settlement or verdict. Contingency fees are committed to fighting for the victim’s rights and securing the compensation the attorneys deserve.