What Are Contingency Fees?
Contingency fees are attorney fees that are paid out of settlements or verdicts when a lawyer wins a case. This payment model is typically used for personal injury cases and other types of cases that involve negligence. These fees are generally agreed upon by attorneys and clients at the outset of a case. The Newnan injury attorneys at Kam, Ebersbach & Lewis offer our clients this fee structure when we take on their case.
Purpose of Contingency Fees
The purpose of contingency fees is to make legal services more accessible to clients when they are facing financial uncertainty after an accident. Many clients would not be able to access legal services when they are facing expensive medical bills and other expenses. As such, contingency fees solve this problem by making sure that clients do not have to pay anything unless a lawyer wins their case.
These fees are deducted from the settlement or verdict that is awarded so clients do not have to be concerned about affording a lawyer. It also ensures that they do not have to pay anything if a case is not won.
How Contingency Fees Work
Because clients pay nothing at the beginning of a case to secure legal representation, lawyers assume the costs of the case upfront. This means the hours they spend, investigative costs, court fees, and so on are paid for by the lawyer.
Prior to taking on a case, lawyers and clients will agree on a fee percentage that will be claimed out of the client’s settlement or verdict. It is also why they will carefully evaluate a case before taking it on to make sure it is one they can win.
How Much Contingency Fees Cost
The average contingency fees can range from 25% to 40% of the final value of a settlement. The exact fee percentage may be influenced by several factors. The more complex or time-consuming a case, the higher the percentage may be.
This also means that litigated cases may increase the fee amount. Contingency fees can also be impacted by the amount of risk an attorney assumes when they take on the case and can also be impacted by their level of experience.
Contingency Fees Must Adhere to Certain Requirements Per Georgia Law
Lawyers are bound by Rule 1.5 of the Georgia State Bar to maintain reasonable fees based on the time required to resolve the case, location, the lawyer’s experience, and so forth. Lawyers are also obligated to communicate all fees and obligations to clients in writing. Once both parties agree to the fee details, the agreement must be signed by both parties to be effective.
Discuss the Contingency Fees for Your Case with a Lawyer
Contingency fees provide the opportunity to retain representation and advocacy during a difficult time. Kam, Ebersbach & Lewis use this model to serve our clients and give them peace of mind that they will get fair and maximum results. When you schedule a consultation with our team, we are ready to answer your questions and discuss the fee options for your situation.