What You Should Know About Hiring a Lawyer on a Contingency Basis
Posted on behalf of Lynch Law Firm on May 12, 2020 in Personal Injury News
Many injured victims may feel that hiring a lawyer may be out of their budget, however, this does not mean all is lost. Most personal injury lawyers work on a contingency basis – meaning they do not bill you for any legal fees unless you obtain compensation.
Having a qualified attorney review your claim at no cost entails zero risk, and your chances of recovering maximum compensation increase significantly when you have legal representation.
The New Jersey personal injury lawyers at Lynch Law Firm have a “no recovery, no fee policy”. You do not pay for our services unless we recover funds for you. We only receive a percentage of your compensation when we win.
What Does Contingency Basis Mean?
A contingency basis is an agreement between you and your lawyer which states that he or she will work on your claim at no cost until financial compensation is recovered on your behalf. If your lawyer is successful in obtaining compensation for your claim, he or she then receives a previously agreed upon portion, which is usually a percentage of the settlement.
Although most lawyers do not take a case on contingency unless they know they can win, if your lawyer is unsuccessful in his or her pursuit for compensation, you will not have to pay any lawyer fees. However, if this is the case, you may have to cover some court fees.
The Advantages of Contingency
Many people live paycheck to paycheck and do not have the financial means to pay for a lawyer up front. Perhaps the biggest advantage you have with a lawyer who is working on contingency is the fact that you do not have to come out-of-pocket for any lawyer fees. You only pay the lawyer if he or she wins funds for your claim and the payment comes out of your settlement award. This makes it fair for anyone who is injured and in a difficult financial situation.
If your lawyer loses the case, you will not have to pay for lawyer fees, which means he or she will be motivated to work as hard as possible to ensure the case is successful.
The Disadvantages of Contingency
When a lawyer agrees to work on contingency, it means that he or she will be allowed to receive a certain agreed upon percentage of the settlement, no matter how long it takes or how much time is put in to working on the case. For instance, if your lawyer settles your claim quickly, the contingency fees might be significantly higher than hourly fees, had the lawyer agreed to an hourly rate.
Another drawback of the contingency fee basis is that lawyers typically only accept cases in which they feel they have a high probability of winning. Therefore, if the case seems questionable or difficult to prove, the lawyer may not want to take part in attempting to resolve it.
What is the Average Amount for Contingency?
The contingency fee is a certain percentage of your potential settlement amount which you and your lawyer should agree to before he or she decides to work on the case. The more complex the case, the higher the contingency percentage may be. This percentage may also be higher than most other personal injury cases if there is a chance that the case may have to go to trial, which means your lawyer will have to work harder and spend more time preparing to go to court.
A typical contingency fee for a personal injury lawyer can usually range between 25 and 40 percent of the settlement, however, the average amount is around 33 and one-third percent.
Contact a Trusted Lawyer Today for a Free Case Review
It is important to not let the cost of lawyer fees stop you from seeking justice and pursuing the compensation you need. A good lawyer will do everything possible to get you enough compensation to help cover all your damages, including your past, present and future medical expenses.
Let the New Jersey personal injury lawyers at Lynch Law Firm hear the details of your claim in a free consultation to learn if you may qualify for compensation. We charge no upfront fees and there is no obligation to move forward with our firm, so there are no risks involved.
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