What is a Contingency Fee?
In Florida personal injury law, a contingency fee means that your attorney gets paid on the contingency that they win your case. Instead of charging by the hour, as a criminal defense or family law attorney would, your Florida personal injury lawyer collects a percentage of your final award as payment.
For people who have been seriously injured in an accident, out of work, and facing mounting medical bills, the contingency fee option is a big relief. They can retain high-quality legal representation without paying a large upfront fee.
How Does a Contingency Fee Work?
Clients sign a contract with their lawyer that covers fees, litigation costs, and the relationship between lawyer and client. Your contract should clearly state what percentage your lawyer charges (35-45% is the average), and what, if anything, you are responsible for paying if your lawyer doesn’t recover compensation for you.
Personal injury claims can cost a surprising amount. If the fault is contested or the plaintiff has little evidence, the lawyer must investigate the case and dig for it. Many firms rely on professional investigators, but those cost money.
Beyond the need for professional investigators, building a strong personal injury case, especially one with disputed liability, may also require analysis from experts in specific fields. For example, medical experts link the accident to your injuries, or an accident reconstructionist explains how a truck crash happened. The law firm pays for these experts, too.
Court fees, hiring experts and professional economists (who can help value your claim), and your lawyer’s time are all included in what you pay your lawyer.
Florida Bar Association Requirements for Contingency Fees
The Florida Bar Association has suggested standards for cases taken on a contingency fee basis:
- 33.3% of any recovery up to $1 million. This applies if the case is settled before the defendant files an answer or demands arbitration
- 40% of any recovery up to $1 million if the case is won in court or settled after the demand for appointment of arbitrators or the filing of an answer
- Up to 30% may be charged on any recovery between $1 and $2 million, and up to 30% on any recovery exceeding $2 million
- The client must pay expenses and costs, in addition to the lawyer’s fees. The client may be responsible for these payments even if the lawyer loses the case.
- Any changes to the agreement you and your lawyer made initially may have to be approved by the court
At the conclusion of the case, your lawyer must give you a written statement of the outcome, the amount recovered (if any), and how that amount was calculated, plus an itemized bill of all costs.
Is a Contingency Fee Worth It?
Like any kind of financial contract, contingency fees have benefits and drawbacks.
Pros & Cons of Contingency Fees for Personal Injury Clients
When an accident you didn’t cause leaves you out of work, with thousands of dollars in medical bills, and extensive property damage (like a totaled car), not having to pay for a lawyer up front may be the only way injured people like you can afford a lawyer. And not having to pay your lawyer if they don’t win is appealing to just about everyone.
However, if the case goes to trial, expenses could be high. This is especially true if your lawyer needs several expert witnesses, who charge hundreds of dollars per hour, or more. If you win, the amount you get may be much less than you expected. If you lose, you must still pay your lawyer’s fees and all the bills you got after the accident.
Pros & Cons of Contingency Fees for Personal Injury Lawyers
Personal injury lawyers are incentivized to seek the highest possible compensation in personal injury and medical malpractice claims.
But, personal injury lawyers pay litigation costs upfront, including their time. If they lose, they don’t get paid for time spent. This risk is their biggest drawback, which makes many lawyers selective about the cases they choose.
How Can Guardian Legal Counsel Help You?
Have you been in an accident and need fair compensation? Turn to Guardian Legal Counsel. We provide legal representation for personal injury victims. We blend compassionate advocacy with tenacious litigation skill. Contact us today for a free consultation.