In this article, we’ll discuss the prices a personal injury attorney charges and what do personal injury attorneys charge. We’re going to cover how personal injury attorneys charge by the hour, percentage, and contingency (what is a contingency fee). Lastly we’ll discuss what factors contribute to a lawyer’s fee.
What Does an Hour of Legal Work Cost a Lawyer?
The general rule for hourly rates is that the hourly rate will be:
– 50% higher at the beginning of an attorney’s career.
– 30% higher if the attorney’s practice is in a large metropolitan area like New York City or Los Angeles.
– 30% less if the attorney has been in practice for many years and has become specialized. For example, an elder law lawyer may only charge 20 to 30 percent more than a young lawyer because that elder lawyer is viewed as more specialized and experienced, although it is also dependent on whether this older lawyer could command that rate before specializing in elder law. A specialty or niche practice area command premium rates as well, sometimes even approaching double the non-specialized hourly rate, assuming that the specialty area is something where clients are willing to pay more.
How Much Do Personal Injury Attorneys Charge on a Contingency Basis?
A contingency fee agreement is the most common fee arrangement between a lawyer and a client. In this type of arrangement, the attorney gets paid only if the personal injury claim is successful. The amount of money recovered is then split between the plaintiff and attorney. There are two types of contingency arrangements: “contingency-based” fees and “stated-damages” fees.
1) Contingency-based Fee
The attorney will receive a percentage, often 33%, of whatever the settlement amount is. If there is no settlement then there are no fees. This means that the lawyer’s fee is completely risk free because if the attorney wins and gets paid, it doesn’t matter whether or not his or her client receives any money. Most personal injury attorneys charge 33% of the amount collected by a plaintiff through litigation – if there isn’t a recovery because of a non-payment or other dispute, then lawyers typically don’t charge anything. After all, there really isn’t any risk to the lawyer since he or she will only be paid if he or she wins.
2) Stated-Damages Fee
In this type of fee arrangement, the lawyer will be entitled to a specified amount of money regardless of whether the lawsuit is successful or not. This fee is typically only for cases in which there is an insurance settlement that is large enough that the attorney can have a chance at recovery. Sometimes it is referred to as “substantial recovery” or “substantial recovery contingency fee.” In these situations, the lawyer will typically be entitled to a percentage, sometimes 40% or more, of the amount recovered. Here again, if there isn’t any recovery because of non-payment or other dispute, then lawyers typically don’t charge anything.
What Factors are Considered in a Personal Injury Case?
The “tort system” in our country is based on the premise that parties who are injured have a right to be compensated for their losses by those responsible. Uninsured or underinsured motorists, dangerous products, medical malpractice, and premises liability cases all fit into this category. A plaintiff must show that his or her injuries were caused by negligence on the part of someone else. This means proving that another party was legally at fault. The defendant may be responsible only if he or she acted carelessly.
Damages are measured in money. The amount of the verdict says something about the severity of the injury and how much has been lost because of it. Jurors are told to focus on losses that can be proven with evidence. They are not supposed to speculate about future hardships, emotional distress, or pain and suffering.
Determining what a personal injury attorney’s fee should be is subject to several factors:
1) How much time do you have?
The more time you have before trial, the better your results will likely be. If you have several months before trial then a lot can happen in that time period. Furthermore, if you are not injured but believe that a case is worth pursuing, then you need to think about how much more time you’ll be waiting before trial.
2) What are the risks?
Most personal injury cases are resolved when insurance companies settle and pay the defendant what they would normally pay in one lump sum. When this happens, there aren’t any losses for you to prove at trial. Your attorney essentially has nothing to prove to the jury. You may have a solid case if you win your case, but it will take very little time or money for your attorney to get paid. If your attorney’s client is found liable then he or she can get paid no matter what.
3) What are the chances of winning?
If your case involves proving that a dangerous product or machinery was responsible for your injuries, then it may require a technical understanding of the product. You may need to prove that there were design flaws or manufacturing defects. If you are involved in a medical malpractice case, then this might be based on an evaluation of what treatment you received and comparing it to what is considered standard care. These cases can sometimes involve complicated medical conditions and other factors that make them more complicated than most personal injury cases. As such, they take longer to pursue.
4) Is there a medical condition that will require future treatment?
If your injuries are serious and will require future care, then it may be necessary to prove the extent of your injuries. It is typical in these cases for experts to be hired to assist with determining how much your injuries have impacted your ability to earn money, take care of regular tasks, or enjoy the same quality of life you had before the accident. These cases can get complicated quickly and the compensation you receive for your losses might not even be realized until years later.
Should You Prefer Personal Injury Attorneys that Charge Hourly?
This is a personal question, and the answer depends on your preferences. If you pay hourly, then you are going to get all the awards or settlements. On the other hand, if you prefer to pay with the percentage over the award or settlement, then you will not have to worry about the costs. However, you will lose some portion of your award or settlement.
