How Contingency Fee Agreements Help Personal Injury Clients

Car crashes occur unexpectedly, and victims often experience financial hardship due to missed work, vehicle repairs, and piling medical expenses. To help regain financial stability, injured victims may need to file an insurance claim with the appropriate carrier. Unfortunately, filing a claim requires time, money, and knowledge of both personal injury and insurance law, resources many people do not have. 

Hiring an attorney following a collision or other accident does not have to create additional financial burdens on an injured victim. An experienced injury lawyer can offer assistance by charging a contingent fee without having the victim incur the financial risk of payment upfront or hourly legal fees.

What is a Contingency Fee Agreement?

Like most injury law firms, my office represents victims of car crashes and other accidents on a contingency fee basis. A contingent fee is a fee the attorney receives only if the attorney obtains financial compensation for the client. Customarily, the fee is based on a percentage of recovery and depends on the stage of the case at the time of settlement or verdict. For example, most contingency fee agreements have one rate that applies when a case settles without litigation but a higher rate if the attorney has to file a lawsuit or try the case. 

How Do Injury Lawyers Deal With Case Expenses?

Virtually every personal injury claim requires some expenditures before the attorney can recover a settlement for the client. Some common expenses are the costs of purchasing the police report, the fees to retrieve medical bills and records, and the costs of filing a lawsuit and litigating a case in court. 

Under most contingency fee agreements, the attorney agrees to pay these expenses on the client’s behalf. If the attorney secures recovery through a settlement or verdict, the client agrees to reimburse the attorney at the time of disbursement. Usually, these reimbursable expenses are separate from and in addition to the contingent fee. 

While almost all contingency fee agreements provide for reimbursement of expenses, each firm treats costs differently. For example, my office seeks reimbursement only for those costs that are directly attributable to that particular client’s case. We do not require clients to reimburse us for indirect costs like fax fees and other overhead expenses. 

What if the Attorney Cannot Help?

Since my firm handles injury cases under contingency fee agreements, our clients do not have to pay my office upfront. Additionally, if we cannot secure financial recovery, the client does not have to reimburse us for anything, including for the time and expenditures we invested in the case. 

Speak With An Experienced Injury Lawyer Immediately After a Car Wreck

If someone’s negligence injures you or a loved one, you have enough things to worry about. Do not let negotiating with an insurance company be one of them. We deal with the insurance company so you can focus on getting your life back to normal. You have one chance to do this; make the right choice by choosing the right attorney. Call us at (956) 291-7870 or email us at contact@rdjlawyer.com for a free consultation and case evaluation.