One of the first questions people have when hiring a personal injury lawyer is how much legal representation will cost. After a consultation, clients often want to understand how the lawyer’s fees are calculated, especially because contingency fees are common in personal injury cases.
Understanding how personal injury lawyers charge for their services can help you know what you may be responsible for paying. A free consultation allows you to discuss your claim and legal options, while the lawyer can explain the contingency fee percentage, case-related costs, and what you may owe if the case does or does not result in a recovery.
How Do Personal Injury Lawyers Typically Get Paid?
The way a personal injury lawyer is paid depends on the terms agreed upon with the client and the circumstances of the case.
Through a Contingency Fee
Many personal injury lawyers are paid through a contingency fee, which means the lawyer receives an agreed percentage of the compensation recovered for the client. The client generally does not pay the lawyer’s legal fee upfront.
Under D.C. Rule of Professional Conduct 1.5(c), a contingent fee agreement must be in writing and explain how the lawyer’s fee will be calculated and what expenses the client is responsible for. The rule also generally permits contingent fees in civil cases.
For example, if a lawyer agrees to a 33% contingency fee and recovers $90,000 for the client, the lawyer’s fee would generally be $29,700, subject to the terms of the written agreement and any applicable expenses.
When the Case Is Resolved
A lawyer working on a contingency fee is generally paid when the case results in a settlement or court award. The lawyer’s fee is usually deducted from the amount recovered before the remaining compensation is given to the client. The amount the client receives will depend on the total recovery, the lawyer’s fee, and any other costs the client agreed to pay.
If a case settles for $100,000 and the lawyer’s fee is 33%, $33,000 would generally go toward the lawyer’s fee, leaving $67,000 before any other agreed costs are deducted.
Through Separate Case Expenses
The lawyer’s fee and the costs of handling the case are separate expenses. Depending on the agreement, the client may also have to pay costs such as court filing fees, medical record charges, expert witness fees, or investigation expenses.
The agreement should explain whether these costs are deducted from the recovery and whether they are taken out before or after the lawyer’s fee is calculated.
If the Case Does Not Result in a Recovery
With a contingency fee, the lawyer generally receives a legal fee only if the client recovers compensation. If the case does not result in a settlement or court award, the client may not owe a contingency fee.
For instance, if a claim is unsuccessful and no compensation is recovered, the lawyer may not receive a contingency fee, but the client could still be responsible for certain case expenses, depending on the terms of the agreement.
Through Another Fee Arrangement
Not every personal injury case works on a contingency fee basis. Depending on the legal service involved, the lawyer and client may agree to an hourly rate, flat fee, or another payment arrangement.
Under D.C. Code § 15-701(b), attorneys may charge or receive reasonable compensation from clients for their services when the amount is agreed upon or consistent with general usage. The lawyer should explain the payment method before beginning the work so the client understands what they will be charged.
Key Takeaways
- Contingency fees are common in personal injury cases, with the lawyer’s payment usually based on the compensation recovered.
- The lawyer is generally paid when the case is resolved, with the fee taken from the settlement or court award.
- Case expenses may be separate from the lawyer’s fee, so find out which costs you may have to pay.
- You may still have expenses if the case is unsuccessful, depending on the terms of your agreement with the lawyer.
- Other payment arrangements may be available, so make sure you understand how the lawyer will charge before hiring them.
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