The Contingency Fee Structure
After someone is injured due to someone else’s negligence, they aren’t often in the best financial situation. Either due to missing work or paying medical bills with savings, funds can quickly diminish, leaving the injured party stressed and unsure about the future. Luckily, hiring a personal injury attorney doesn’t have to break the bank, and you don’t have to pay anything upfront if the firm represents you according to a contingency fee deal.
If you need legal representation following a personal injury, you have more options available to you than you think. Today, we will discuss why personal injury attorneys make use of a contingency fee model and how it benefits their clients.
The Different Fee Structures That Lawyers Use
The type of clients an attorney represents usually determines the fee structure they commonly use. The most common fee structures you will see include the following:
- Flat Fees
- Hourly Rates
- Contingency Fees
Flat fees make sense for an attorney specializing in cases with a predictable outcome and workload. Instead of high-profile trial cases or lengthy negotiations, for example, flat fees are standard when someone needs assistance drafting contracts or leaving a marriage with two parties in total agreement. An attorney can charge a one-time, flat fee in these scenarios because 99 percent of all their previous experience working in these areas of the law followed a similar trajectory.
Hourly rates are responsible for many of the headlines you may see about high corporate lawyer salaries. As the name suggests, attorneys who charge by the hour represent their clients to the best of their ability, however long that might be. If the amount of time they need to dedicate to the case is unknown or there is no significant payout at the end of the trial, lawyers charge hourly rates as their only way to make money from the case.
Both hourly rates and flat fees are too high for most people suffering after a personal injury. Personal injury attorneys understand this, and most use a contingency fee model to provide their clients with top-notch representation at no financial risk.
Why Are Contingency Fees Common For Personal Injury Lawsuits?
The main selling point of contingency fee models is the guarantee that a client pays nothing to their lawyer unless the lawyer recovers money in the form of a settlement or judgment in court. In most cases, a contingency fee can be seen as a ‘win-win’ scenario, given that the client is satisfied with the percentage given to their attorney after a successful claim or lawsuit.
A contingency fee model allows those who need personal injury representation into a free consultation as soon as possible. Without the fear of expensive lawyer bills, someone who truly needs legal assistance can find the perfect attorney they believe will fight on their behalf. There are no hidden fees, and the client knows exactly what percentage of the winnings the attorney will receive from the outset of the relationship.
Personal injury attorneys also like contingency fees when taking on new personal injury clients. With no initial charge, more clients are willing to come in for a consultation, increasing the potential client base of the attorney. Additionally, even if most of the compensation goes to the victim, an experienced attorney who passionately represents clients can expect a decent payout if they win.
Call Hale Law today to learn how we can fight on your behalf to get the compensation you deserve for your personal injury. Your consultation is free, and you will never be charged a fee unless we recover compensation for you, because we handle all personal injury cases on a contingency fee basis.
