How Can The Reduced Attorney Fee Program Save Me Money On My Personal Injury Case ?
How Can The Reduced Attorney Fee Program Save Me Money On My Personal Injury Case ? There are two things to keep in mind here. The first is that my reduced contains a lower attorney fee percentage than that typically found in personal injury fee arrangements commonly seen in Maryland. The second is that, by definition, it is a contingency fee agreement. In this regard, it’s really no different than any other contingency fee plan. The appeal, and advantage, of the contingency fee agreement when used in an injury and related case is that the client- the injured person- bears no responsibility for attorney’s fees or costs at the outset of the case or on an upfront basis. As Attorney Eric T. Kirk will tell you.
It is only where the case is brought to a successful conclusion, and there is a financial recovery for the injured person, that attorney’s fees are assessed.
If for whatever reason there is no financial recovery on the case, a contingency fee arrangement means that the client owes nothing. There may be a variety of reasons why a case ultimately bears no fruit what or there is no recovery of compensation.
- A case could be overturned on appeal
- An uninsured defendant might lack the assets to satisfy a judgment
- The client could opt to discontinue the case
- A case could be settled on non-financial terms
How a Contingency Fee Arrangement Works in a Typical Personal Injury Case
In personal injury matters, a contingency fee arrangement allows an injured person to hire a lawyer without paying any upfront legal fees. Instead of billing the client by the hour, the attorney agrees to receive a percentage of any financial recovery obtained through a settlement or court award. This structure is designed to give individuals access to skilled legal representation regardless of their financial circumstances. Under a typical contingency fee agreement, the attorney only gets paid if they successfully recover compensation for the client. If the case is unsuccessful—meaning there is no recovery—then the client generally owes the attorney nothing for legal services. This model shifts the financial risk of the litigation from the client to the lawyer.
Common Percentage Rates
The contingency fee percentage can vary depending on the complexity of the case and when it is resolved. In many jurisdictions, the standard rate for a personal injury matter is 33⅓% of the total recovery if the case settles before a lawsuit is filed. If the matter proceeds to litigation or trial, in some jurisdictions, the percentage may increase to 40% to reflect the additional time, risk, and resources involved. The percentage could be higher in a business or breach of contract dispute. For example, if a personal injury case settles for $90,000 and the fee agreement is for one-third of the recovery, the attorney’s fee would be $30,000. The remaining $60,000 would go to the client, subject to deductions for costs and expenses. So, How Can The Reduced Attorney Fee Program Save Me Money On My Personal Injury Case ? The second principal advantage is that the attorney fee percentages under my reduced attorney fee program are lower than those typically found in common personal injury arrangements in Maryland. By way of a second hypothetical illustration, only, assume there is a recovery in the form of a jury verdict after trial in the amount of $50,000 on a significant personal injury case. Under the common 40% contingency fee arrangement, the attorney fee would be $20,000, due to the attorney who tried, and won, that case. [i.e. 40% of 50,000] Under my reduced fee program the percentage would be limited to 35% or $17,500 as a fee due after a successful trial. The difference -$2,500- would end up in the client’s pocket as additional compensation. Contingency fee percentages may be limited by statute in certain types of claims, and of course those limits would always apply. You and your attorney should discuss preferred alternative fee arrangements, such as flat rates, or hourly billing. But, particularly in the case of debilitating injury, the contingency fee arrangement allows the injured person the freedom to employ personal injury counsel of their choice without consideration of their financial resources- at a time when those resources may be sparse.
Legal Costs and Expenses
It’s important to distinguish between attorney’s fees and case costs or litigation expenses, such as filing fees, medical records retrieval, expert witness fees, and deposition costs. These expenses are separate from the contingency fee and are deducted from the client’s share of the recovery. Some attorneys cover these expenses up front and are reimbursed at the conclusion of the case, while others may require the client to pay certain costs as they arise. The exact approach should be clearly stated in the written fee agreement.
Benefits for Clients
The contingency fee model provides several advantages for injured clients:
- No upfront payment: Clients can pursue a claim without financial strain.
- Access to experienced counsel: Even complex cases can be pursued with a skilled attorney.
- Aligned incentives: The attorney is motivated to maximize the value of the case, since their compensation depends on the outcome.
In Writing, Signed, and Understood
Rules in most states require that contingency fee agreements be in writing and signed by the client. The agreement must spell out the percentage the attorney will take, how costs will be handled. As in life, generally, it just makes send to ask questions first, before entering into a business relationship, rather than at the end, when unasked – and therefore unanswered- questions can become problems.
I have have been prosecuting personal injury case cases for more than 30 years. I’ve handled thousands of cases in that time. I invite all potential clients to participate in a no-cost analysis and strategy conference. Contact me today to arrange a time to meet. 410 591 2835, or simply complete the form at the bottom of the page.
- Baltimore Personal Injury Trial Lawyer Eric T. Kirk
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For over three decades, I have battled against the nation’s largest insurance companies, always endeavoring to ensure my clients receive the compensation they deserve. As lead counsel in thousands of cases across Maryland, New York, and Florida, I have recovered millions for clients whose claims were wrongfully denied and delayed. Whether denying fair compensation for a personal injury victim or denying benefits to a homeowner, Insurance companies employ policy exclusions, technicalities, and lowball offers to deny and defeat claims. They also hire very good lawyers to fight you in court. So should you. When an insurance company unfairly rejects a claim, I stop them.
