Instead of charging an upfront fee on an hourly basis, a personal injury lawyer takes a fee on a contingency basis. It is a system of taking the fee as a percentage of the compensation amount a client will receive. The exact percentage a lawyer takes is subjective and varies from lawyer to lawyer.
The percentage they take
There is a general rule, which states that a lawyer has a right to demand 33% of the final compensation amount they help in receiving. But cases vary when they go into litigation and may cost differently. This fee structure is a goal that helps a client to mitigate the financial risk factor to hire an attorney for their representation.
How can Contingency reduce the Financial Risk of the Client?
A contingency fee structure has several beneficial terms for the client. They do not have to:
- Pay the upfront cost to the lawyer for their services, especially if the clients are suffering from financial turmoil.
- Pay any out-of-pocket expenses that a lawyer might charge otherwise.
- Pay nothing to the lawyer if they do not receive any compensation at all.
No Win, no Fee
When a lawyer is working under a contingency fee structure, the risk of getting nothing out of the case if they are not able to win any compensation for their clients. Thus, a zeal to work harder evolves in them as in a way they are financing your case from their pockets.
The lawyer’s goal is to serve their clients so that their mental state after the accident does not get spoiled further and they can take time and focus on their recovery. No one should face a situation where they will be paying damages for someone else’s negligence and the court of law gives them the full right to sue the liable party.
The time is taken to solve a personal injury case
A personal injury case may take from between a month to years depending on the severity of the case. If the party sued for compensation and the insurance companies are ready to pay whatever compensation you have demanded or maybe negotiate a little low with your concern, then your case will be solved in no time.
On the other hand, if the lien denies your accusation, you might have to provide evidence to prove that they are guilty. Further, if the insurance company is not willing to compensate you, you may take the case for litigation and wait for results. These scenarios take a lot more time.