The subject of lawyer fees or rates inevitable comes up whenever the need for legal representation arises. Not surprisingly then the question of fees is always an issue when a victim is deciding whether to hire a personal injury law firm for an injury they have suffered.
Despite what many people think, attorney fees are not set by any governing body nor are they regulated by the state Supreme Court or state Bar Association. Most states simply require fees to be reasonable given the type of representation and experience of the attorney. Many states do, however, address in what type of cases an attorney may accept a contingent fee arrangement. A contingent fee arrangement works as follows: An attorney agrees to represent the plaintiff in a cause of action. The attorney agrees that they will not receive any compensation UNLESS they win the case. Assuming that they win the case, their fees will be a percentage of the total amount awarded to the client. Contingent fee arrangements can be beneficial to both the attorney and the client, but they also have a strong potential for abuse. If, for instance, a lawyer’s fee was dependant on how much money he was able to acquire for a spouse in a divorce proceeding, divorce proceedings would be much more contentious and take much longer than they already do. By anyone’s standard that is not a good policy decision. For that reason, states regulate in when a lawyer may accept a contingent fee arrangement. On the other hand, victims that have been injured by a negligent party often do not have the financial resources to retain an attorney in order to file a lawsuit against the negligent party. For this reason, the only way many victims are able to receive compensation for their injuries is by allowing attorneys to accept personal injury cases on a contingent fee basis. As such, states generally allow a lawyer to accept representation on a contingent fee basis in personal injury cases.
By allowing lawyers to accept contingency fees in a personal injury lawsuit, the client actually gains an advantage in two ways. First, the client is able to retain legal counsel to help her receive compensation without having to pay out of pocket. Second, the attorney has an additional incentive to negotiate or litigate the case for the maximum possible compensation amount since his fee will be a percentage of the total award. For this reason, victims know that their attorney is working hard to get them the most money possible for their injuries.
Exactly what percentage a personal injury law firm will charge for representation can vary by location and firm. Industry standards are somewhere between 25%- 35% if the case settles without the need to go to trial and 35% – 50% if the case goes to trial. The percentage charged by an attorney will depend on a number of factors including the chances of winning, the experience of the attorney and who the defendant is that the attorney will be negotiating with or litigating against. The average is likely 33% for a top quality lawyer.
If you have any additional questions, please feel free to contact the California personal injury law firm of Ledger & Associates at 1-800-300-0001 or visit them online at www.ledgerlaw.com.
