In Georgia, most accident lawyers charge clients on a contingency fee basis, which allows injured people to seek legal representation without upfront costs. In this arrangement, the lawyer receives a percentage of the financial recovery they win for their client, who owes nothing if the lawyer can’t win compensation. Contingency fees enable people of all financial means to obtain legal counsel and align the client’s and lawyer’s interests.
If you were hurt in an accident, you might worry about having to pay for a lawyer on top of the other financial burdens imposed by your injuries. Retaining an attorney who works on contingency can provide much-needed financial relief during this challenging time.
What Is a Contingency Fee?
In a contingency fee agreement, a personal injury lawyer agrees to represent an accident victim at no upfront cost. This means the client does not need to pay a retainer to hire a lawyer for their personal injury case.
A personal injury lawyer working under a contingency fee agreement does not bill the client by the hour. Instead, the fee for all the lawyer’s work comes from the financial compensation they win for the client. A contingency fee entitles the lawyer to an agreed-upon percentage of the client’s financial recovery. In personal injury claims, contingency fees range between 25 and 40 percent, depending on the specific type of personal injury claim, the geographic area, the lawyer’s experience and reputation, and the stage of litigation that the case reaches.
However, a contingency fee agreement also means that if the lawyer does not win a financial recovery for their client, the client owes the lawyer no legal fee.
What Types of Services Are Usually Included with a Contingency Fee?
When you hire a personal injury lawyer under a contingency fee arrangement, you benefit from the lawyer’s services for the duration of your case. During representation in a personal injury case, a lawyer will:
- Investigate your case to recover evidence supporting your claims
- Evaluate the strength of your case and your legal options
- File insurance claims on your behalf and handle communications with insurance adjusters
- Negotiate with insurance companies and liable parties to pursue a fair and full settlement
- File lawsuits on your behalf when litigation becomes necessary to pursue your claims
- Represent you during court proceedings, including initial pleadings, discovery, and pretrial motion practice
- Prepare your case for trial and present it to the judge and jury
In a contingency fee agreement, a personal injury lawyer will also cover other services needed for your case, such as working with expert witnesses or pursuing alternative dispute resolution through mediation or arbitration.
Are There Other Fee Structures That Lawyers May Use to Charge for Their Services?
Attorneys use other fee structures besides contingency fees, typically in other legal matters beyond personal injury. Lawyers most frequently work under an hourly fee arrangement, under which the client pays a lawyer for the time the lawyer spends working on their case. Lawyers track the time they spend working on a case, usually down to a quarter, sixth, or 10th of an hour, adding up the time worked and multiplying it by their hourly rate to calculate their legal fee.
Many attorneys who work under hourly fee arrangements will require clients to pay an upfront retainer. The retainer provides a pool of funds that the lawyer holds in trust for the client, against which the lawyer can charge their fees as they work on the case. Lawyers who use retainers may ask clients to replenish the retainer fund as needed.
Some lawyers also work under flat fee arrangements. In these cases, the lawyer agrees to perform all necessary work within the scope of the legal matter for which the client hires them. Flat fees allow clients to avoid the worry of spiraling legal costs as work on their case increases. However, lawyers who work for flat fees may narrowly describe the scope of representation, with any work following outside that scope requiring an increased fee or new fee agreement. Lawyers typically use flat fee arrangements in cases with a predictable scope of work. In doing so, the lawyer can estimate a reasonable fee for the case to avoid grossly undercharging or overcharging the client.
Could There Be Additional Costs My Lawyer May Charge for My Case?
Personal injury lawyers working under contingency fee arrangements also cover case expenses that arise in a personal injury claim. These additional costs could include:
- Court filing fees
- Investigator fees
- Expert witness fees
- Record request fees
- Court reporter fees
- Mediator or arbitrator fees
- Copying, printing, and mailing costs
- Long-distance travel expenses
Your lawyer will typically receive reimbursement for the case expenses they paid when you win compensation in your personal injury case.
Will My Contingency Fee Be Higher If My Case Goes to Court?
Some contingency fee agreements use a sliding scale for the percentage the attorney receives for their legal fee. The contingency fee percentage may increase as the case progresses through litigation, reflecting the increasing amount of work the lawyer must perform on the case. The lawyer’s percentage may increase when the case hits specific milestones, such as filing a lawsuit or taking the case to trial. As a result, your lawyer may receive a higher percentage if your case goes to trial.
Keep in mind that personal injury lawyers typically advise going to trial in a personal injury case if the defendant refuses to settle or the lawyer reasonably believes their client may win substantially more compensation at trial than they would receive from a final settlement offer. In other words, while their fee may increase if the case goes to trial, that additional cost may be offset if the client recovers more compensation.
Contact a Georgia Personal Injury Lawyer
If you suffered injuries due to another party’s negligence or carelessness, an experienced Georgia personal injury attorney from Bayuk Pratt can help you seek the compensation you deserve. Contact us today for a consultation to learn about our process, including our contingency fee arrangement, and how we will fight on your behalf to hold those who harmed you responsible for their actions.