You’ve seen and heard the ads everywhere — lawyers promising that you won’t owe them anything unless they win your case. Although it may sound too good to be true, the fact is that for certain types of legal matters, contingency fees are the norm. This type of fee arrangement makes legal services accessible to people who might not be able to pay a lawyer’s fee out of pocket. However, it’s important to understand how a contingency fee works and what it does and does not cover.
In a contingency fee arrangement, the lawyer gets paid only if there is a successful outcome in the legal case; meaning a settlement or a judgment for the client is achieved. In that event, the lawyer takes an agreed-upon percentage of the amount of money recovered.
Contingency fees are most common in personal injury cases, such as claims involving car accidents, slips and falls and medical malpractice. People who have suffered severe bodily harm are often in acute need of money for medical treatment and other expenses. The victims may be out of work and have no other income. Contingency fees allow them to pursue compensation without having to pay their lawyers’ hourly rates.
In Virginia, the percentage charged by personal injury lawyers in contingency fee arrangements normally ranges between 33.3 percent and 40 percent of the recovery, depending on whether the case settles before or after the litigation is initiated. These percentages are stated and discussed in a fee agreement at the start of the case.
In addition to the contingency fee, the client will usually be responsible for case expenses, like fees for retrieving medical records, court filing fees, expert witness fees and other expenses necessary to the case. Depending on the case, lawyers may advance the payment of these costs and get reimbursement from a client’s settlement later or request an upfront payment from a client.
When accepting a case on a contingency fee basis, the lawyers face the risk of potentially not getting paid for their work (if the case does not result in any recovery). For this reason, the lawyers are usually selective with the cases they are willing to accept. If the lawyer believes that the successful outcome of your case is unlikely, they will decline representation.
When retaining an attorney to handle your personal injury case or other matter, discuss the fee arrangements in detail and read any proposed contingency fee agreement carefully to make sure you understand the terms. A thorough discussion at the onset can avoid confusion and conflicts during critical stages of the case later on.
Ernest Law Group, PLC in Virginia Beach seeks full compensation for people injured in accidents throughout the Hampton Roads area. Please call 757-289-2499 or contact us online to schedule a free initial consultation.
Ernest Law Group, PLC is located in Virginia Beach, VA and serves clients in and around Norfolk, Portsmouth, Fort Monroe, Hampton, Virginia Beach, Chesapeake, Chesapeake City County, Hampton City County, Norfolk City County, Portsmouth City County and Virginia Beach City County.
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