The contingency fees is an unique way of
charging clients by the personal injuries lawyers. In this type of arrangement,
instead of charging per hour fees, the lawyer charges proportions of any
settlements and judgements announced in each case. However, in cases where
their client loses, they usually receive no payment!
The contingency fee of these lawyers is generally
far greater than the hourly fees charged by them. In this case, if a lawyer
wins a case, he would be getting heavy pay check which is not possible when per
hour fees is charged. For a lawyer, the dry spells of no/few cases is very frequent.
Thus, they need to be financially prepared to sail through these phases. The high
amount contingency fee is what saves them.
For such arrangements, the lawyers usually
reach out to their clients by advertisements and other marketing medium. This advertisement
usually speaks about the services of attorneys who don’t charge a penny until
they succeed in the court. Most clients usually agree to this arrangement but
end up paying higher fees than usual.
Generally speaking, the average contingency
fee charged by these lawyers is one-third of the settlement amount. This means,
if the client got a compensation of $30000, he would be left with $20000
because $10000 will be charged by the attorneys. These lawyers make sure to
advertise and publicize their business models over all medium to reach out to
their clients.
If you carefully read the newspapers, you
will notice the increasing number of contingency fees lawyers. These personal
injury lawyers also charge small additional fees for their services apart from
the cut in the settlement amount. For the clients as well, it is a safe play.
If the lawyer wins your case and earns you settlement, you need to give him a
part of your claim amount. However, if he/she loses your case, you must just
have to pay the additional amount to the lawyer, if required.
Some lawyers do give discounts on the fixed
33 percent of the settlement amount, but most of them don’t. Whatever be the
case, if your lawyer has won the case for you, you ought to pay him one-third
of the claim amount. The reality is that the contingency fees model is a
win-win situation for clients looking to cover debts and the lawyers, looking
to earn more money.
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