Dealing with the aftermath of a personal injury can feel overwhelming. Amid medical appointments and recovering from trauma, the thought of dealing with legal matters might seem daunting. Of course, your health is a significant issue, and whether you will make the fullest possible recovery from your injuries. Additionally, you may have financial problems that are keeping you awake at night. Not only do you have medical bills, but you may also be unable to work. Financial compensation for your injuries can be helpful, but you need to reach a point where you can receive enough for your long-term needs. A Coral Springs personal injury attorney can certainly assist with that, but you may be worried about how you can afford to pay them.
The personal injury legal system wants you to get help, so it is easy for you to hire a lawyer. Most personal injury lawyers get paid only when you win your case. Speak to our personal injury attorney at Cindy Goldstein Law, both to learn about whether you have the right to compensation and about the cost of hiring a lawyer. We offer free case consultations, and there are no attorney’s fees or costs, unless we win your case.
Key Takeaways About How a Personal Injury Attorney Gets Paid
- You may be struggling with money after you have suffered an injury in an accident, but it does not have to prevent you from hiring an experienced personal injury lawyer.
- Attorney’s fees are regulated by the Florida Bar. Personal injury attorneys work on a contingency fee basis, which means, your attorney only gets paid if and when you receive compensation for your bodily injury.
- If you do not win your case, you do not have to pay your attorney any fees or costs for legal services.
- There are limits on what a personal injury attorney may charge as a contingency fee under the Rules of Professional Conduct governed by the Florida Bar.
- You should speak to a personal injury lawyer today to learn how you can afford legal help in your case.
What Is a Contingency Fee?
A contingency fee is a payment arrangement in personal injury cases where the lawyer’s fee depends on, or is contingent upon, the outcome of your case. Instead of paying upfront or hourly legal fees, you agree that your attorney will receive a percentage of the money recovered, if they successfully win your case through a settlement or verdict. A contingency means that one thing happens when another predicate event occurs first. Here, the predicate is that you win your case and receive money for your injuries.
At that point, you take on a legal obligation to pay your lawyer out of the proceeds of your financial recovery. The money does not come from your own pocket, and your lawyer will deduct it from your compensation before you receive payment yourself.
The standard contingency fee in Florida is a sliding scale, typically 33.3% before filing a suit, 40% after filing and the defendant files an answer. Different compensation applies if the case is against a government entity and its sovereign immunity, or if the case falls under the Federal Tort Claims Act (FTCA).
If your lawyer does not recover any compensation for you, you do not owe attorney’s fees. This system enables accident victims to pursue justice and compensation without incurring the financial risk of paying for legal representation out of pocket.
Contingency fees align the lawyer’s interests with yours since they only get paid if you do. Most agreements also specify how to handle expenses, such as court filing fees or costs for medical professionals and accident reconstructionists who may testify. This arrangement makes high-quality legal help accessible, regardless of your financial situation, and motivates your lawyer to pursue the strongest possible recovery.
The Public Policy Reasons for a Contingency Fee
The contingency fee system plays a vital role in providing access to justice for injury victims and others who cannot afford to pay an attorney upfront. The primary policy reason behind contingency fees is to make legal representation available to everyone, regardless of financial means. Many personal injury victims face mounting medical bills and lost income after an accident and would otherwise be unable to hire a lawyer without this arrangement. Personal injury legal representation is not just for those who can afford to pay a lawyer out of their own pocket.
By allowing clients to pay only if they win, contingency fees remove financial barriers and allow them to pursue meritorious cases. This arrangement levels the playing field against powerful defendants, such as insurance companies and large corporations, that have significant legal resources.
Contingency fees also promote efficiency and fairness in the legal system. Because the lawyer’s compensation ties directly to the client’s success, attorneys are highly motivated to build the strongest possible case and maximize the recovery. They are selective in the cases they take, focusing on those with solid legal and factual foundations, which helps filter out weak or frivolous claims.
Contingency Fees Must Be in Writing in Advance
When hiring a personal injury lawyer, they must clearly detail the contingency fee arrangement in the representation agreement. This written contract outlines the terms of your attorney-client relationship and helps both parties fully understand how to handle fees and costs before the case begins.
The agreement should specify the exact percentage the attorney will receive if the case is successful. It should also explain whether the lawyer calculates the percentage before or after deducting the expenses, since costs like court filing fees, expert witnesses, and medical record retrieval can affect your net recovery.
Additionally, the agreement must outline how to pay expenses if the case is unsuccessful and whether you are responsible for reimbursing any costs incurred. Transparency at this stage prevents misunderstandings later and protects your right to fair representation.
Most states and bar associations require contingency fee agreements to be in writing for precisely this reason, to safeguard clients from hidden fees or unethical practices. Reviewing the document carefully and asking your lawyer to explain any unclear terms helps you understand precisely how your attorney will receive compensation for handling your case.
You Don’t Pay Unless You Win Your Case
One of the most significant advantages of hiring a personal injury lawyer after a car, truck, or other accident with a contingency fee arrangement is that you never pay anything unless you win your case. This payment structure allows injury victims to pursue justice and compensation without the burden of upfront legal fees, making experienced legal representation accessible to everyone, regardless of financial situation.
Under a contingency fee agreement, your lawyer’s payment is entirely dependent on the outcome of your case. If they successfully recover money for you through a settlement or court judgment, they receive a pre-agreed percentage of that amount. If they do not win, you owe nothing for their time or legal services.
In addition to legal fees, most attorneys also cover case-related expenses upfront, including court filing fees, expert witness costs, and the retrieval of medical records. The attorney recoups these costs only if your case results in a recovery.
This risk-free structure offers peace of mind and levels the playing field against insurance companies with vast legal resources. You can focus on healing while your lawyer handles every aspect of your case, knowing they will work diligently to secure the best possible result for you. Simply put, with a contingency fee agreement, you do not pay unless you win, and your attorney only earns a fee when you do.
There Are Limits to a Contingency Fee
When you hire a personal injury lawyer after a car or truck accident, it is common for them to work on a contingency fee basis. However, there are limits to what a lawyer can charge as a contingency fee, and these limits protect clients from unfair or excessive charges.
Professional ethics rules and state laws may regulate contingency fee percentages. The specific limits vary by jurisdiction. A personal injury attorney cannot simply charge you whatever they wish as a contingency fee.
Pursuant to The Florida Bar:
The following limitations are contained in the Rules of Professional Conduct and apply only in cases involving personal injury or property damage that occurred as a result of tortious conduct such as auto accident or products liability cases. These limits also apply in medical malpractice cases if you have agreed to waive your right to the amount of a recovery provided for in the Florida Constitution. You and your attorney may agree to a lesser percentage than those listed below. However, if you and your lawyer want the fee to be greater, you must go to court before your case is filed or at the same time your complaint is filed to get the percentages increased. Lawyers who charge more than the amounts below are presumed to be charging an excessive fee unless they have prior court approval to do so.
- 33 1/3 percent of any recovery up to $1 million if you and your lawyer settle your case before the filing of an answer or demand for appointment of arbitrators or if you settle before the time for filing the answer or demanding appointment of arbitrators expires,
- 40 percent of any recovery up to $1 million if you settle or win your case at any point after the filing of an answer or demand for appointment of arbitrators or after the time expires for filing and answer or demanding arbitration through the entry of judgment.
- In addition to the above fee, your lawyer may charge up to 30 percent of any additional recovery between $1 million and $2 million either by settlement or trial verdict.
- In addition to the above fees, your lawyer may charge up to 20 percent of any additional recovery above $2 million either by settlement or trial verdict.
- At times, the person you are suing may admit that they are liable but may disagree with you on the amount of damages that they owe you. If all of the defendants admit liability when they file their answers and only want a trial on the question of damages, the lawyer may charge up to 33 1/3 percent of any recovery up to $1 million, 20 percent of any recovery between $1 and $2 million, and 15 percent of any recovery over $2 million.
- If after the trial or settlement your case is appealed or your attorney has to seek post-judgment relief or file an action to help you collect your judgment, an additional 5 percent of the recovery may be added to the fee.
- In addition to fees, you may be responsible for paying costs and expenses if this is what your agreement requires. These will have to be paid even if you lose your case and your lawyer does not collect a fee. At the end of your case, your lawyer must give you a written statement of the outcome of the case. If there is a recovery, the lawyer must give you a written statement of the amount recovered and how it is calculated, plus an itemized bill showing all of the costs and expenses. This statement must be signed by you and the lawyer(s) who represented you. If you have any question on any of the charges, ask your lawyer.
State Bars also look to the American Bar Association for guidance. Specifically, according to the American Bar Association, the rule states the following:
“A lawyer shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses.”
The ABA does not place a strict numerical limit on the contingency fee that a personal injury lawyer may charge. Instead, what is reasonable largely depends on the facts and circumstances of the situation.
Typically, contingency fees range from 33.3 to 40 percent of the final recovery, depending on the case's complexity and whether it settles before trial or proceeds to court. For example, a lawyer might charge 33 percent if your case settles pre-suit, but increase to 40 percent if litigation becomes necessary and the Defendant files an Answer to the Complaint. Some states impose specific caps. For instance, in Florida, the Florida Bar’s rules limit the contingency fees in personal injury cases to protect clients from overpayment.
The personal injury attorney cannot charge more than the agreed-upon percentage, regardless of when the case settles. It does not matter whether your case settles in weeks or after many months. Your attorney commits to work as hard as possible until you get a fair settlement, no matter how quickly it may happen.
Contingency fee limits help promote fairness and transparency in the attorney-client relationship. Before signing any agreement, carefully review the fee terms and ask questions about how your lawyer will determine the percentage. Understanding these limits gives you confidence that your lawyer’s interests align with yours, maximizing your recovery while keeping legal fees reasonable.
Frequently Asked Questions About Contingency Fees
Why do lawyers use contingency fees?
Contingency fees make legal representation accessible to everyone, aligning your lawyer’s interests with yours.
How are expenses that the lawyer has incurred treated?
Your lawyer will deduct these costs from the proceeds of your case, but only in accordance with what the representation agreement specifies.
Do I need to pay if I do not hire the attorney?
The initial consultation is always free, and you never have to pay for that consultation, even if you opt for a different lawyer.
A Personal Injury Lawyer Must Want to Accept Your Case
While you need to feel confident in your choice of legal representation, it is equally important to understand that a personal injury lawyer must also want to accept your case. Attorneys evaluate potential cases carefully before agreeing to represent a client, and their decision often depends on several key factors.
First, a lawyer must determine whether your case has legal merit, meaning that there is clear evidence of negligence, liability, and damages. If it appears challenging to prove fault or connect the injury to the defendant’s conduct, the attorney may decline the case. They also consider whether the potential recovery justifies the time, effort, and costs of litigation, as personal injury lawyers typically work on a contingency basis and only get paid if they win.
Your lawyer is spending time on your case that they may have devoted to other legal matters. If you do not win your case, a personal injury attorney does not receive compensation. Accordingly, a personal injury lawyer will want to review the strength of the case before they choose to accept it. Once they have taken on your case, they have an obligation to continue providing you with legal representation under most circumstances.
Other considerations include whether the client’s expectations are realistic and whether a strong working relationship, with trust and effective communication, exists. Lawyers also evaluate practical issues, such as insurance coverage limits, the availability of evidence, and the credibility of witnesses.
Contact a Personal Injury Lawyer Today
Ultimately, when a lawyer chooses to accept your case, it means they believe in your claim and are willing to invest their time and resources to pursue a successful outcome. This mutual commitment lays the foundation for an effective and productive attorney-client partnership. Schedule a free initial consultation with Cindy Goldstein by calling us today at (954) 346-5420.