If you're bringing a personal injury case, you may have heard about contingency fees or not paying until you recover. If you want to make informed decisions about how to handle your case, you need to understand what this concept means.
What is the Definition of a Contingency Fee?
A contingency fee means that your lawyer only gets paid if you win your case. If you don't win in court or your case gets dismissed, your lawyer doesn't get anything.
In many cases, your lawyer will also cover the costs of preparing to go to trial, so you don't have to pay anything at all. Again, you only need to pay these costs if you win your case. The costs can include the court filing fees, hiring expert witnesses, and paying to bring witnesses in to testify.
How Much is a Contingency Fee?
A contingency fee is usually a percentage of what you recover in your case. This means your lawyer gets paid more if they help you win more.
The percentage can vary based on where you are and the type of case. Some lawyers have a different percentage for different parts of the case. For example, settling early might have a lower fee than going all the way to a jury trial because the lawyer would do less work.
Contingency fees are not by the hour. However, the insurance company lawyers are usually paid by the hour, which gives the insurance company an incentive to settle your case faster.
Why Do Lawyers Use Contingency Fees?
Many people can't afford to hire a lawyer for a large retainer or hourly fees. If you have a case that you can easily win but can't afford to hire a lawyer, you may never be able to bring that case to court. Even if you tried to represent yourself, there's a big chance you'd make mistakes or not know what to do and lose your case.
You also wouldn't want to be in a situation where you have already lost money on medical bills and lost wages, lose your case, and are then in even more debt to your lawyer. The truth is that you can never know what can happen when your case goes to trial. There is always the possibility of the judge or jury not reaching what you think is the right decision.
To learn more about the costs of a personal injury case, contact a local personal injury lawyer.
