Whether you have been injured in a car crash, a bike or motorcycle accident, or were bitten by a dog on someone else’s property, the physical pain is only part of the problem. Medical bills pile up, you might miss work, and the other party’s insurance company is calling. You might consider hiring a personal injury attorney but one question typically comes first: “How am I going to pay for it?”
This is a question that plagues accident victims. Lawyers have a reputation of charging exorbitant fees, and you might think it will be impossible to pay for one. With most injury cases you don’t pay up front. Instead, your attorney works on a contingency fee basis. This is how people all across Utah can get experienced personal injury attorneys without paying anything up front. In this article, our Utah personal injury attorneys will break down what a contingency fee is, how it works, and how it benefits injured clients.
What is a Contingency Fee?
A contingency fee is a payment arrangement in which your lawyer’s fee depends on the outcome of your case. For most fields of law an attorney bills by the hour. With a contingency fee your Utah personal injury lawyer takes a percentage of the money recovered for you through a settlement or a verdict.
If your lawyer recovers compensation for you, then the law firm is paid a pre-agreed percentage of that recovery. If the lawyer does not recover compensation, then you don’t owe attorney fees. Put simple, the lawyer only gets paid if you get paid.
This is very different from hourly billing which most people picture when they think of an attorney. In an hourly arrangement, a client might have to pay a retainer of thousands of dollars upfront and then receive bills whether or not the case goes well. For someone already facing serious medical expenses and lost income, that model would put legal help out of reach.
How Does a Contingency Fee Work in a Personal Injury Case?
Here is how the process usually unfolds:
- Free Consultation: You meet with a Utah personal injury attorney, usually at no cost, to talk about what happened. The attorney then evaluates whether you have a viable claim and explains your options. There is no obligation to sign or pursue a claim at this stage.
- The Fee Agreement: If you do decide to hire a personal injury attorney, you will sign a written fee agreement. Here in Utah the Utah Rules of Professional Conduct require that all contingency fee agreements must be in writing and must state the method used to calculate the fee, including the percentage that goes to the lawyer if the case settles, goes to trial, or is appealed. The agreement should also explain how case expenses are handled and whether they are deducted before or after the fee is calculated.
- The Firm Gets to Work: Your attorney will then start your case. They will investigate the accident, gather evidence, collect medical records, deal with the insurance company, calculate the value of your claim, and negotiate on your behalf. If a fair settlement is unable to be reached, your attorney can then file a lawsuit and your case will go to trial.
- Resolution and Payment: When your case settles or a verdict has been reached, the settlement funds will then go to the law firm’s trust account. Your attorney will then ensure case expenses are paid, outstanding medical bills and liens are addressed, attorney fees are set aside, and the remainder then goes to you.
How Much is a Typical Contingency Fee?
Contingency fee percentages vary from law firm to law firm and sometimes even case to case. Most Utah personal injury attorneys charge around one third (about 33%) of the recovery if the case settles before a lawsuit is filed. The percentage may increase if the case requires litigation, because filing suit, conducting discovery, and preparing for trial takes substantially more time and resources.
There is no single fixed rate across the state or the country, so the percentage matters less than understanding exactly what it covers. Always ask for the fee structure in writing and have the attorney walk you through it before you sign.
How a Contingency Fee Benefits You As a Client
No Upfront Costs
You don’t need savings, a credit card, or a loan to hire a personal injury lawyer. If you are out of work and facing medical bills, this can be the difference between pursuing your claim and giving up on it.
You Don’t Pay Attorney Fees If there’s No Recovery
Pursuing a legal claim always carries uncertainty. A contingency fee shifts much of the financial risk of that uncertainty away from you and onto your attorney. If the case isn’t successful, you generally owe no attorney fees. (Ask your attorney how case costs are treated in that situation, as policies may vary and the fee agreement should say.)
Your Lawyers Interests Align With Yours
Since your attorney fee grows when your recovery grows, your attorney has a direct incentive to maximize the outcome of your case. Under hourly billing the incentive can run the other way. Your attorney might want to draw out your case as long as possible to get more and more money out of you. Under a contingency arrangement, you and your lawyer are working toward the same goal.
Careful Case Selection
Because a personal injury attorney only gets paid if it wins, it will evaluate your case honestly before taking it. If an attorney accepts your case on a contingency, that tells you they see a legitimate claim that is worth pursuing. It also means the firm is motivated to put in the work needed to build the strongest case possible.
Often, You Net More Than You Would Alone
Insurance companies frequently offer less to claimants who aren’t represented. A knowledgeable attorney can often negotiate a much higher recovery, and in many cases the net amount an injured person receives after fees is greater than what they’d have accepted on their own. This isn’t guaranteed in every case, and no ethical attorney can promise a result, but it’s a real consideration.
The Bottom Line
A contingency fee is what makes the legal system accessible to people who have been injured through no fault of their own. You pay nothing upfront, you owe no fees to an attorney unless there’s a recovery, and your lawyer has every reason to fight for the best possible result.
A contingency fee is a win win for both you and your Utah personal injury attorney. If you or someone you know has been injured in Utah give the Utah personal injury lawyers at LifeLaw Trial Lawyers a call today. Our team of expert injury lawyers offer free consultations and will evaluate your case. We will talk you through what happened, and work to ensure your case is treated with the care it deserves. Give us a call to get started on your road to recovery.