Cases where a victim has been injured due to the negligence of another party, are classified as personal injury cases. These types of cases are often complex and require the knowledge and expertise of a personal injury lawyer.
Contingency Fee
Normally you would pay the lawyer on an hourly basis. But when it comes to personal injury law, you have the option of the contingency fee. When a lawyer works on a contingency fee basis, they will be paid only if they win the case. Yes, they will not receive any kind of money if they lose the case.
In addition, the client doesn’t have to pay anything out of their own pocket. In the contingency fee system, the lawyer will receive a percentage of the compensation amount. So the client doesn’t have to worry about paying the lawyer.
It feels like not a good system for lawyers, but still, most personal injury lawyers opt to work on a contingency fee basis. Because if used right, the contingency fee system can favor both lawyer and client. Moreover, with the contingency fee system, more victims will come forward seeking justice.
This arrangement provides several benefits for victims of personal injury, including:
- Access to Legal Representation
- No Upfront Costs
- Incentive to Win
- Flexible Payment Option
- Prevents Double Recovery
- Less Risk for the Victim
Access to Legal Representation
The contingency fee arrangement provides access to legal representation for those who cannot afford it otherwise. If you have been injured and cannot work, you may not have the financial resources to pay an attorney upfront.
Justice is something that everyone wants. Money shouldn’t be an obstacle to getting the justice you deserve. In a country, even the poor should be able to get the justice they deserve. If they can’t, it means the judicial system is failing them. The contingency fee system is a great way to get everyone to come forward to seek justice.
Contingency fees also level the playing field because they allow victims to retain a lawyer even if the opposing party has deep pockets and can afford to pay high hourly rates. An insurance company will definitely lawyer up. Even more, they will have the best lawyers to fight you. To win against them, you need to have a good lawyer by your side.
No Upfront Costs
Another benefit of contingency fees is that you will not have to make payments upfront. This is important because personal injury cases can be expensive and often require expert witnesses and other costly resources. If a victim is needed to pay an upfront fee, they will probably not be interested in going through the whole process because they will already be at a financial loss. So, paying the upfront fee is not something possible for them.
If you were to pay an attorney by the hour, you would be responsible for these costs regardless of whether you win or lose the case. Your lawyer will front these costs with a contingency fee and only charge you if they successfully recover damages on your behalf.
Incentive to Win
Since personal injury lawyers only receive a payment if the case is won, they have a solid incentive to obtain the best possible outcome for their clients. They will likely invest more time and resources into your case than if they were working on an hourly basis.
Additionally, most personal injury law firms like hutzlerlaw.com prefer this arrangement since they believe in their client’s cases. If they did not believe the victim had a strong chance of winning, they would not take on the case.
Flexible Payment Options
In many cases, lawyers will agree to receive a lower percentage of the settlement if the case is settled out of court. This can be helpful because it allows you to avoid the time and expense of a trial.
Your personal injury lawyer will usually charge a higher percentage if the case goes to trial since they will have to invest more time and resources. However, this percentage is still flexible and can be negotiated.
Prevents Double Recovery
If you were to win your case, the court would likely award you damage to compensate you for your injuries. If you had already paid your lawyer an hourly rate, you would essentially be double-dipping and receiving a windfall.
With contingency fees, your lawyer will only receive a portion of the damages awarded, preventing double recovery.
Less Risk for the Victim
Finally, contingency fees provide less financial risk for the victim in your case. If you were to pay an attorney hourly and the case was unsuccessful, you would be out of pocket for the costs of the legal representation regardless of the outcome.
With a contingency fee, you only have to pay if you win, which means there is less financial risk for the victim. If you need to pay the lawyer even after losing the case, you will be further buried in a financial hole. Personal injury lawyers offer a contingency fee system to help the victim to get what they deserve.
When a lawyer works on a contingency fee structure, the victim will feel like the lawyer has trust in their case. Only if the lawyer is sure to win will they offer to work on a contingency fee basis because they will not get anything out of the case if they lose. So, if they are taking the case means, they are sure enough to win it. This reduces the stress and risks of the victim.
Personal injury cases can be complex and often require the knowledge and expertise of a personal injury lawyer. If you have been injured, you should opt for a contingency fee arrangement in order to benefit from the many advantages it provides. Some lawyers will charge more than others. Even in contingency fee arrangements, you need to be careful, or you will end up paying more for a mid-level lawyer. Consult with many lawyers and know their fee structure before hiring them. Hire a lawyer who is willing to come under your budget.
