What is a Contingency Fee and How Does it Affect You and Your Case?
You may have considered seeking legal representation if you’ve been injured because of someone else’s poor choices. However, if you’re like many accident victims, you are also concerned about the potential costs associated with hiring a lawyer. This is why many attorneys in certain areas of law represent individuals on a contingency fee arrangement.
Learn more about how contingency fees work and what they mean for you as you seek legal help. When you’re ready to discuss your case in greater detail, call Reeves & Mestayer at 228-300-2754 to schedule a consultation.
An Overview of Contingency Fees and When They’re Used
Contingency fees are those that are only paid if the plaintiff recovers compensation for the issue that they have consulted an attorney for. For that reason, they are generally used in areas of law where people are likely to receive money.
Some specialties that often use a contingency fee structure include personal injury, workers’ compensation, disability benefits, wrongful termination, and employment discrimination. They’re unlikely to be used in criminal cases, as the person seeking representation isn’t fighting for compensation—they are trying to avoid being convicted.
Personal injury law is perhaps the most common area of law to use contingency fees. Victims of accidents are often left without income or any plan for how to pay their medical bills and other accident-related costs. This financial stress often keeps people from talking to a lawyer at all, even when they’re likely to benefit from it. Lawyers use a contingency fee structure to make it easier for victims to seek compensation.
How They Work
When you consult with an attorney, they will explain their fee structure to you and outline the expectations for both parties. Lawyers that use this fee structure do not require a retainer, so you can start your case without paying anything upfront. They should also disclose the percentage they’ll take if they successfully recover compensation for you. Before you hire an attorney, you will sign a variety of forms. One of these is the fee agreement, which outlines your expectations.
If the lawyer recovers money for you, they collect their fee then. Before the settlement or court award reaches you, any fees owed to healthcare providers and other parties are paid out. The attorney will then receive their cut. The remaining amount goes to you.
What a Contingency Fee Means for Your Case
Whichever way you look at it, contingency fee structures make legal representation more widely available to a much larger group of people. Without this fee structure, victims would likely need to spend hundreds or thousands of dollars just to retain an attorney. The fees would quickly add up after the retainer was spent. This would make it even easier for insurance companies and negligent parties to take advantage of victims. When you choose a lawyer with a contingency fee structure, you know that you get to keep your money and that the attorney is taking on the risk—not you.
You should also discuss other fees and expenses with your attorney before signing any contracts or agreements. There are other expenses associated with legal representation, such as court fees, expert witness fees, and other similar expenses. Find out what happens if your attorney is unable to recover compensation for you. Will you have to pay those expenses out of pocket or will the attorney absorb those expenses? Each lawyer handles these costs differently, so it’s important to know all potential outcomes.
You may feel more confident in your case and how your attorney handles it when there’s a contingency fee structure in place. Your attorney should act in your best interest in any situation, but when their money is on the line, it’s much easier to trust that they are doing what’s best for you.
Ready to Start Your Claim? Call Reeves & Mestayer Today
Have you been injured by someone else’s negligence or poor choices? You could be entitled to compensation—find out now by calling the team at Reeves & Mestayer. We’ll learn more about your case, explain our fee structure, and give you our professional advice. Schedule your consultation now by calling us at 228-300-2754 or messaging us online.
