A contingency-based lawyer only receives payment after winning the case.
Lawyers have different fee arrangements with their clients. A contingency fee structure is where a car accident lawyer receives payment as a portion of the settlement.
car accident lawyer
Salt Lake City Utah
Car accidents happen all the time, and they can have serious legal repercussions. Therefore, it is prudent to hire a car accident lawyer if you have a car accident in Salt Lake City, Utah. There are numerous types of fee arrangements that lawyers enter into with clients. One of them is to work on a contingency fee basis. So, what is a contingency-based lawyer? Keep reading and find out:
How Does Contingency Work?
The typical arrangement between lawyers and their clients is payment on an hourly basis. A contingency fee means that the lawyer receives payment as a percentage of the settlement payment.
Essentially the lawyer only receives payment if they win the case. Therefore, if there isn’t a successful recovery of compensation, the lawyer does not earn a fee.
A contingency fee arrangement does not require the client to pay the attorney a retainer fee, or any other lawyer fees out of pocket. The client pays no fee during the consultation and as long as the case is pending.
The lawyer will typically have a set percentage they charge for contingency fees for different types of cases. However, some lawyers may be open to negotiating the rate.
Benefits of a Contingency Fee Structure
The primary benefit of a contingency fee structure is quite obvious. Clients do not pay the lawyer unless they win the case.
Another benefit is that it allows people from all walks of life to acquire an attorney. If they cannot afford the consultation or any other lawyer fees, they can still get a lawyer’s expertise until the case is decided.
Personal injury cases often involve humongous medical bills. A contingency fee structure allows victims to gain legal services without being bogged down by bills.
A substantial benefit of a contingency fee structure is that it incentives the lawyer to maximize recovery. If a lawyer will not be paid unless they win the case, you can be certain that your interests are aligned.
How Much Is a Contingency Fee?
The amount a client pays for a contingency fee will depend on several factors. One of them is the time and effort a lawyer puts into the case. The lawyer will estimate the case’s difficulty and formulate a contingency fee rate.
The certainty of the outcome will also affect the contingency fee. The more likely an attorney is to win the case, the lower the contingency fee.
A case that is settled before going to trial has fewer costs and effort, meaning the contingency fee is likely to be lower.