No matter what type of accident you have been involved in, you could be entitled to compensation if your damages were caused by the negligence or recklessness of another person or entity. However, pursuing legal action after an injury can be complicated and costly. A contingency fee is a beneficial option in personal injury law that allows individuals who have been affected by an accident to secure legal representation without breaking the bank. To learn more about your case and options regarding payment structures, continue reading and speak with an experienced Nueces County, Texas personal injury lawyer today.
What is a Contingency Fee in Personal Injury Law?
A contingency fee is a type of payment arrangement made between a client and their lawyer in a personal injury case. When this arrangement is made, the lawyer agrees to represent you without receiving compensation unless you win your case and are awarded damages.
Instead of paying the lawyer upfront or on an hourly basis, their fee is contingent upon your case being successful. They only get paid if you settle successfully or win your case and are awarded compensation. This is a risk that the lawyer takes as they could walk away with no money if you are not awarded compensation, but it also acts as a motivator to win the case.
This arrangement is particularly beneficial for individuals who do not have the ability to pay for legal services upfront but still need or want to pursue legal action for the injuries and damages they have sustained.
How Do Contingency Fees Work?
Contingency fees are based on a percentage of the total compensation that you are awarded. When you and your lawyer make the agreement in the first place, neither of you knows what the outcome will be and how much, if any, compensation you will receive. You and your lawyer will agree on a percentage of the settlement or damages that you will pay to them for their services.
There is no specific percentage that is set by law, but Rule 1.04 of the Texas Disciplinary Rules of Professional Conduct outlines several rules that lawyers must abide by, including “A lawyer shall not enter into an arrangement for, charge, or collect an illegal fee or unconscionable fee. A fee is unconscionable if a competent lawyer could not form a reasonable belief that the fee is reasonable.”
Reasonable fees are determined by examining factors relevant to the case, such as the time and labor necessary, difficulty, similar market value, the length of the relationship, the lawyer’s ability and reputation, the experience provided, and more.
Most contingency fees in Texas range from 33% to 40% of the total amount recovered. For example, if you are awarded $100,000 in damages, your lawyer may be entitled to $33,000 to $40,000, depending on the agreement that was made.
To learn more about contingency fees and other payment options, schedule a free consultation with an experienced attorney today.
