How Do Injury Lawyers Get Paid? Understanding Legal Fees

Personal injury cases are some of the most common cases in the United States, and you’re always recommended to hire a lawyer whenever you’re forced to seek compensation. There’s just one problem. The average person simply can’t afford to pay a high-quality professional for months, or even years, of legal services out of pocket.

So, how do injury lawyers get paid for their services? How does a standard middle-class person suddenly afford legal services to get compensation when they need it most?

It’s actually a very client-friendly process designed to protect your financial health, and it makes a lot more sense when you understand legal fees.

The Two Main Ways a Lawyer Gets Paid in Personal Injury Cases

There are 3 ways that lawyers get paid, but one of them is rarely used in personal injury law. The unused method is a retainer. It’s an expensive method, and you don’t have to worry about it.

Instead, personal injury lawyers typically charge contingency fees, and there is a small chance that certain lawyers might require hourly rates. Hourly rates aren’t common in personal injury law, either.

1: Contingency Fees

A contingency fee is the best way injury lawyers get paid. It’s extremely client-friendly, and it makes legal services accessible even for people who are struggling financially.

Essentially, the lawyer goes over your case, and they agree to do it for a percentage of your winnings. That percentage is usually based on how quickly you receive compensation. If your case is settled before getting to the courtroom, the percentage the lawyer takes is usually lower. It can even be as low as 25%. If the case does have to go to trial, the fee can get up to 40% of your winnings.

Here’s the best part. If you lose and don’t get any compensation, you don’t owe anything for this main fee. The lawyer takes it as a loss.

This is why a contingency fee system is the best way to pay a lawyer in a personal injury case. Even if you don’t have the funds to pay for a lawyer, you can still get premium representation to fight in the courtroom and receive the compensation you deserve. You just have to pay them out of your compensation. There’s no risk to your income during an already tough time.

However, because there is a significant financial risk for the lawyer, lawyers do go over all the details of the case and determine whether you have a good chance to win or not. They do have to weed out cases that are clearly not going to receive compensation in a fair court of law. Cases that typically don’t qualify are usually when the plaintiff did something that caused the injury, the defendant didn’t have a duty of care to prevent the injury, or some sort of mistake was made, and there’s no evidence tying the injury to the defendant.

This is the type of payment structure you should look for almost any time you hire a personal injury lawyer. It makes the most sense, and it has the least risk.

2: Hourly Rates

Hourly rates are not common in personal injury law for plaintiffs. Lawyers are highly experienced professionals in a complicated field with licensing qualifications that are difficult to attain. Hourly fees are typically high and difficult for the average person to afford.

While hourly rates aren’t reasonably accessible for the average person, it is a possible payment structure in some cases, and it does take away the financial risk the lawyer faces.

In contrast, hourly rates are common on the defendant’s side of the courtroom. Especially when they’re not counting on any compensation of their own.

Other Fees That You Have to Consider

The vast majority of the time, you’re going to pay an injury lawyer via a contingency fee. You don’t have to worry about an exact hourly rate or any other number that can get out of control if the case drags on. It’s just a simple percentage of whatever you win.

However, there are other fees that you might end up paying. Luckily, they usually come out of your winnings. So, you’re still protected financially while you try to receive compensation.

There are two of these extra fees that you might pay.

First, there’s the filing fee. This is just a simple fee for filing the case with the court system. While the lawyer helps you file to ensure everything is done properly, this is still your case, and you’re responsible for paying the court for their fees.  

The other type of fee is an expert witness fee. In some cases, it is a good idea to hire expert witnesses to strengthen your case. An expert witness is someone who is professional in their field with a lot of hands-on experience with something related to your case. However, they were not around when the event happened, and they’re not connected to you in any way. These are commonly used to explain to the court how your injury could have occurred during the event, the common effects of the injury on someone’s life, the meaning of specialized terms that the average person isn’t familiar with, etc. Again, these fees come out of your winnings, usually.

When is it Best to Call a Personal Injury Lawyer?

Now that you know about the usual fees for a personal injury case, you are likely wondering when it’s a good idea to call a lawyer and start seeking compensation.

That’s another benefit of contingency fees being so popular. Since you won’t be responsible for paying fees unless you win, you can call right away. As soon as you’ve received medical treatment and before you start signing any waivers or speaking to people about the case, you can make a call and set up a consultation. You’re not risking anything.

The lawyer will go over your case and tell you whether it’s worth pursuing or not. There’s no guesswork.

If you’ve suffered a personal injury and want to seek compensation, contact Loutos Law today.