Fee Guarantee

Most personal injury attorneys charge a percentage contingency fee. What does this mean? With a contingency fee it is guaranteed that the attorney will be paid only if they obtain compensation for their client. The contingency fee in personal injury case allows an injured party to hire an attorney without having to pay the traditional "hourly" rate. The contingency fee arrangement does not require any advance payment by the client.

Why is the contingency fee good for both the client and the attorney?

When an attorney agrees to take the case on a contingency fee they are taking risk. If they do not recover any money for the client, they don't get paid. For that reason, most attorneys will not accept a case on a contingency fee unless they feel there is a good chance of recovery for the client. In addition, since the attorney is sharing in the proceeds of the recovery, the client can be assured that the attorney should do his or her very best to obtain a good settlement or verdict.

I strongly recommend that before you meet with an attorney you should ask them about their fee arrangements and whether you can review the fee agreement before your initial meeting or "Free Consultation." The first time you review the fee agreement should not be when you're sitting across the table from the attorney and you're feeling pressured or obligated to sign the fee agreement.

Should an attorney charge the same percentage fee whether they work on a case for two days or two years? Not necessarily.

This is one of the reasons I developed and use a progressive fee schedule for our clients in personal injury cases. This Client Progressive Fee Agreement^TM means that the earlier your case is resolved, the lower the attorney fee is. For example, my contingent fee is as low as 25% of the total recovery. While I strongly believe that insurance companies don't make their best offer until they are staring at a trial date, I recognize that clients may have different goals and needs when pursuing an injury claim. If an attorney's fee is less than the standard 33%, 40% (or even 50%) fee, then the client may be able to settle his or her case sooner and still end up with as much money in his pocket as if he had waited a year or more to get to trial. An insurance company may not be willing to pay top dollar but, because the case is settled early and the attorney is not charging the standard fee, the client may choose to accept a lower amount from the insurance company.

Again, with a progressive fee schedule such as the Client Progressive Fee Agreement^TM it means that the earlier your case is resolved, the lower the attorney fee is. This may enable you to accept a lesser sum from the insurance company but still come out ahead.

The bottom line, if the attorney is able to settle your case before they file suit, then the fee should be lower. With this type of fee schedule you can tell the attorney whether to make a demand to the insurance company before filing suit and when to file suit. Understand, however, it is most attorney's preference, as it is mine, to file suit at least six months in advance of any statute of limitations deadline. There may be other reasons to file suit immediately (such as an important witness planning to leave the area) and these are things to discuss with your attorney. There is definitely a "balancing act" between the time value of money (i.e., pushing the insurance company by filing suit and heading to trial) and reduced attorney fees. This is just something you need to discuss with your attorney BEFORE you hire them.


What About Expenses . . . Am I Responsible For Expenses No Matter What?

No. You should not agree to any personal injury fee agreement unless it states that you're only responsible for case expenses if a settlement or verdict is obtained on your behalf. Further, you should not agree to any personal injury fee agreement which calls for you to advance expense money during the handling of the case. Case costs and expenses should be advanced by the attorney or law firm handling your case. Examples of typical expenses include court filing fees, investigation, auto mileage, photocopies, court reporters, medical records, interest on any money we borrow for expenses, expert witness fees, air fare, etc. If a recovery is obtained, it is only then that you should be asked to reimburse the attorney or law firm for the expenses from your share of the total recovery.