Contingency Fee

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When most people think of lawyers and how they bill their clients, the term ‘billable hours’ comes to mind. That’s unsurprising because billable hours are how many lawyers bill their clients. However, that’s not the only way that lawyers bill their clients. 

Two other popular billing methods are the flat fee and the contingency fee. Personal injury lawyers almost always rely on the contingency fee method.

Billable Hours

The billable hour method is just what it sounds like–the lawyer bills by the hour. That billing structure, unfortunately, puts legal services out of reach of the ordinary person for most purposes. 

Top lawyers might bill hundreds or more per hour, depending on the services provided to the client. Often, lawyers may require clients to pay a retainer to secure their legal representation. This fee arrangement would add up quickly and make it difficult for accident victims to get justice. 

Flat Fee

In a flat fee arrangement, the lawyer quotes a set price for a specific task–$3,000 to draft your last will and testament, for example. This fee arrangement may also be appropriate in cases involving uncontested divorces, DUIs, or bankruptcy filings. The flat fee approach makes the most sense when the lawyer has a good idea of how much time and effort a given task is going to take.

What Is a Contingency Fee Arrangement? 

The contingency fee arrangement is probably the best fee arrangement for clients who lack financial means. In a contingency fee arrangement, the lawyer takes between 30% and 40% of whatever amount you win, either in court or at the negotiating table. The rest goes to you and perhaps to other parties-–the hospital that treated your injuries, for example.  

Contingency fee arrangements can be used in a variety of personal injury matters, including the following types of accident and injury cases: 

• Car accidents 
• Motorcycle accidents
• Truck accidents
• Construction accidents
• Pedestrian accidents 
• Premises liability 
• Slip and fall accidents
• Wrongful death
• Boating accidents

The contingency fee arrangement works only for cases that actually generate income to distribute between the lawyer and the client. A criminal defense lawyer will not charge by contingency fee, of course, because a successful criminal defense does not generate any money with which to pay any fee.

The main advantage of the contingency fee arrangement is that it allows ordinary people access to the legal system. If you have a winning personal injury claim, you can hire a top personal injury lawyer without a dollar in your pocket. 

The second advantage of the contingency fee system is that it aligns your lawyer’s interests with yours–the more money you recover, the more money your lawyer is paid as well. If your lawyer’s contingency fee is 30% and you win $100,000, $30,000 goes to the lawyer. If you win $1,000,000, then $300,000 goes to the lawyer.

Case Expenses

Pursuing a personal injury case may involve additional expenses, such as:

• Court filing fees
• Expert witness fees
• Deposition transcript fees
• Investigation costs
• Process server fees
• Travel expenses for investigations
• Medical record retrieval fees
• Police report fees
• Accident reconstruction costs
• Exhibit preparation costs
• Trial technology expenses
• Online legal research database subscriptions
• Office supplies related to the case
• Postage and courier fees
• Long-distance phone calls related to the case
• Mediation or arbitration fees
• Travel expenses to attend mediations or arbitrations
• Continuing legal education (CLE) related to the case
• Software costs for case management
• Cloud storage fees for case documents
• Insurance costs for professional liability
• Office rent and utilities
• Bank fees for processing client payments and expenses

Some personal injury law firms have the client pay case expenses, win or lose. However, some law offices pay these expenses upfront, out of their own pocket. The lawyer will ‘eat the loss’ if they lose the case. If they win the case, they will deduct the amount from the client’s recovery. 

Since these expenses can be substantial, make sure you know how the lawyer will charge these fees before you agree to hire the lawyer.  

Understand the Fee Agreement Before You Hire the Lawyer

Before you hire a lawyer, check the fee agreement to find out how the lawyer charges their fee and how much they charge. Don’t be afraid to ask questions regarding the fee agreement before signing it. A skilled lawyer should be prepared to answer your questions and explain how the arrangement works in your case. 

In a contingency fee arrangement, lawyers are not likely to agree to represent you unless they believe they can win your case. The bright side to all of this is that if the lawyer agrees to take your case on a contingency fee basis, they believe you have a valid claim. 

To learn more about contingency fee arrangements in personal injury cases, schedule a free consultation with an experienced personal injury lawyer.

Contact an Experienced Seattle Personal Injury Attorney For Help With Your Claim

If you’ve suffered broken bones in a personal injury accident, you could be entitled to compensation from the at-fault party. Contact Davis Law Group Car Accident and Personal Injury Lawyers today to schedule a free consultation with an experienced Seattle personal injury attorney. We can help you understand your rights and options for pursuing compensation.

We proudly serve King County in Washington and it’s surrounding areas. Visit our law office at:

Davis Law Group Car Accident and Personal Injury Lawyers
2101 4th Ave 1030
Seattle, WA 98121
(206) 727 4000
Hours: Open 24/7