Paying a personal injury lawyer
Many life events require the services of a legal professional. Victims of car accidents, people getting divorced, and those filing for bankruptcy all need competent legal representation. Attorneys may also be necessary for people who have been charged with a DUI (driving while under the influence), those who need to draw up a will, and entrepreneurs who want to incorporate their businesses.
The primary concern for most people when they consider hiring a lawyer is the cost. They wonder, “How much will I have to pay to hire an attorney?” Because of the cultural stereotypes from television and movies, many people think that they won’t even be able to speak with an attorney without incurring a huge bill.
In a contingency fee arrangement, the attorney’s fee depends on a recovery. The agreement should also explain case expenses, which can be handled differently from the attorney’s fee.
Different Kinds of Attorneys
Lawyers may focus their work on business, immigration, criminal defense, personal injury or other areas. When you call about an accident, ask whether the attorney handles the type of claim you have.
Ask about the initial consultation
Some attorneys offer a free initial legal consultation. Others charge for the meeting. Ask what the consultation costs and who will meet with you before you schedule it.
If you have been injured in an accident, a free legal consultation is an excellent way to determine whether or not you want a particular lawyer to represent your interests. An initial meeting is an opportunity for the attorney to learn the facts of your case. But it can also help you to decide if you trust the person to be your legal representative.
Common Ways that Lawyers Charge for Work
When you decide to hire a lawyer for your case, the two of you will formally enter into an attorney-client relationship. The document that details this agreement is usually known as a “retention agreement,” “fee agreement,” or “legal services agreement.” This document will specify the services that you can expect from your lawyer and how you intend to pay them.
There are a few common ways that attorneys charge for their work:
Contingency Fee Agreements (Most Personal Injury Attorneys Charge This Way)
Many personal injury lawyers work on a contingency basis. Nevada’s Rule of Professional Conduct 1.5(c) requires a written contingency fee agreement signed by the client. The agreement must explain how the fee is calculated and whether the client is responsible for expenses regardless of the outcome.
The contingency fee agreement will specify a percentage of the money recovered from your case that will be used as payment. Your attorney provides their services in exchange for this percentage of your financial recovery. Some contingency fee agreements include a sliding scale of percentages, depending on the total amount of financial recovery in the case.
The agreement should say who advances litigation costs, what happens to those costs if there is no recovery, and when they are deducted. Examples include filing fees and the cost of obtaining records.
It’s important to discuss whether those costs will be deducted from your financial award before or after the attorney’s fee is calculated. That can actually make a big difference in how much you ultimately walk away with when your case is resolved.
Hourly Fee Agreements (Personal Injury Lawyers Usually Don’t Charge This Way)
Many types of lawyers charge their clients for their services per hour. This type of fee can become expensive for clients very quickly, with rates usually running in hundreds of dollars each hour. In hourly fee billing arrangements, the attorney may require the client to pay a retainer cost.
A legal retainer is an upfront payment that secures the lawyer’s services for the client. The attorney will then charge per hour on an ongoing basis for all work related to that client.
Flat Fee Agreements
Usually, flat fee agreements are applied in cases in which there is a determined legal service that the attorney is providing. In these instances, the lawyer can accurately estimate the amount of work necessary to fulfill their service.
For instance:
- Uncontested divorce filings
- Drafting a will or trust
- Filing a patent, trademark, or copyright application
- Overseeing residential real estate closings or sales
Before you sign, ask the lawyer to show you how your agreement would work with a sample recovery. Keep a copy of the agreement and ask for clarification if a fee or expense is unclear.
