How Personal Injury Legal Fees Work?

Ever thought of hiring a PI lawyer but can’t really understand how the personal injury lawyer fees work? Well, you are not alone in dealing with such trouble!

A personal injury lawyer can help you in all matters relating to your claim. They will analyze your case, gather evidence, negotiate with insurance companies on your behalf, and even take your case to court, should it come to that.

However, just like any other thing in your life, before hiring an attorney, it’s important to understand how legal fees work and the situations when you will be required to handle some costs.

So, how do the personal injury lawyer fees work?

Hi. In today’s blog, this is what I will be explaining. So, if that’s what you want to know, keep reading till the end and thank me later…

Personal Injury Lawyer Fees: What Are Legal Fees of an Injury Lawyer?

In simple terms, legal fees are the costs and expenses that are associated with hiring an attorney to represent your personal injury case.

Most attorneys dispense their legal services under a contingency plan, which we will explain later in this blog.

Some attorneys also charge consultancy fees, while others can, in specific circumstances, charge flat fees. 

Let’s look at each of these legal fees in detail: 

Flat fees

Some lawyers charge clients a fixed fee for relatively simple legal matters. Others do so after agreeing with the client.

Here, the lawyer predicts the amount of time and resources they will spend on the claim to devise a fixed figure. 

Consultancy fees

A consultancy is a meeting between a lawyer and a potential client. The attorney uses this session to understand the client’s situation and determine whether their service may suffice.

In contrast, the client uses this time to get acquainted with the attorney and determine if they are a good fit for them.

Contingency fees

Now, to the most common payment structure for personal injury legal services—contingency fees.

Under this payment structure, the attorney takes care of all the costs and expenses associated with your cases. They include: 

• Expert witness payment 
• Court reporters
• Depositions 
• Trial preparation 
• Filing legal documents 
• Office staff 
• Medical Records 

Under this arrangement, you only pay the attorney once you recover damages, either through settlement or a trial.

Most personal injury lawyers charge a contingency percentage of between 15% and 40%, depending on the stage at which the case is concluded and its complexity.

If a case results in a settlement, the lawyer’s fee will be on the lower end of this range. However, if the claim proceeds to trial, the lawyer’s charges tend to increase. 

Referral Fees

This is payment made to the person referring the case to a personal injury attorney. “Referral fees in Georgia are permitted under specific circumstances as outlined by the Georgia Bar Association,” says personal injury attorney Robert James.

For instance, the referral fee agreement must be in writing, outlining the fees and responsibilities of each party. The client must also consent to the arrangement in writing, outlining the amount each lawyer is to receive.

Finally, the overall fee charged to the client must be reasonable. Along the same line, each attorney’s share must be reasonably tied to their roles and responsibilities or by sharing responsibility for the case.

What Do Personal Injury Lawyers Fees Depend On?

In case it was not clear to you yet, there are several things that can determine the fees of personal injury lawyers. Some of these include:

• Complexity of the case
• Experience of the attorney
• Chances of going to court

Additionally, as I have mentioned before, when it comes to the contingency fee structure, there are several things that determine the fees of the lawyer.

And the most important of all this is the fact that you will only need to pay the lawyer if they are able to win the case for you.

Personal Injury Lawyer Fees: Percentage Lawyers Take From Settlement

Now that you are aware of the fact that PI Lawyers mostly make money in spite of you not having to pay them any upfront cost, you might have one question. And in most cases, this is what people ask: how much money do they get after settlement?

Well, as per the data from the American Bar Association (ABA), personal injury lawyers generally make around 35% to 40% of the settlement amount after winning a case.

This percentage that you see here is basically a portion of the settlement amount that the victims get as compensation. After winning the case, the lawyer takes this percentage of the amount as their contingency fee.

In other words, let’s say that you get $100,000 from the settlement. So, if you had negotiated a 40% off your compensation to the lawyer after winning the case, you would have to pay $40,000.

Choosing the Right Personal Injury Lawyer Fees Structure

When it comes to choosing the fee structure of your PI lawyer, ther are several things that you need to keep in mind. However, the most important of these is what truly works for you financially. 

In most cases, the contingency fee structure is something that works for most people. This is mainly because it gives the plaintiffs the chance to take care of their finances and tackle the economic challenges.

When you are selecting your personal injury attorney, it is best that you ask your lawyer what kind of fee structure they work with. It is very important that the interest of you and your lawyer aligns.

Wrapping It Up!

In conclusion, while most attorneys work on a contingency basis where payment is made after winning compensation, others may use alternative payment methods, including flat fees, such as when dispensing single legal services.

Whatever the case, it is important that you understand your attorney’s fee structure before signing any document. 

I hope you understand the different types of fees in personal injury lawsuits. If personal injury lawyer fees are what you wanted to know about, I hope this article has been of help to you. In case of any other questions, please feel free to comment below.