The cost of seeking legal help is one of the main reasons personal injury victims are reluctant to contact an attorney. Many people have the wrong idea about how attorney fees work. This belief is often coupled with the misconception that victims should “not waste their money” engaging a legal representative.
Legal fees should be your last concern after suffering an injury because most personal injury attorneys charge contingent fees. However, it is essential to understand the costs associated with hiring an attorney. You should never hesitate to start a discussion about legal fees.
“You determine your financial well-being from the outset when you discuss fees with your lawyer before the case starts. If the case ends favorably, you know what percentage you will receive. This discussion also reduces the chances of you dealing with hidden charges,” says Jeffrey P. Lowenthal of Lowenthal & Abrams, Injury Attorneys.
This article highlights five steps to discussing fees with your personal injury legal representative.
1) Know How the Fee Structure Works
Personal injury attorneys can have varying fee structures. It is essential to know the one your attorney uses. However, as mentioned earlier, most personal injury attorneys work on a contingency fee basis, which means you will pay them a pre-agreed percentage only if they win your case.
The percentage depends on your case circumstances. You may also incur extra costs, such as expert witness fees and filing charges.
Ask your attorney to explain everything to you in detail. You should not hire a lawyer until you understand their fee structure. Learn about the typical expenses that may arise during the course of your case and how they will deal with them. This will prevent confusion and surprises later.
2) Understanding Out-of-Pocket Expenses in Your Case
Personal injury cases also involve out-of-pocket expenses. These include medical records, payment for expert witnesses, and court costs. You must clarify who will bear these costs.
Some attorneys often cover these expenses but eventually deduct them from your compensation, while others expect you to cover the costs as they come up. Knowing the system for managing these expenses is essential for both parties to work seamlessly.
3) How to Negotiate a Fair Contingency Fee With Your Lawyer
The percentage for contingency fees ranges from 33 to 40 percent. Since it is not fixed, the circumstances of your case and the probability of a positive outcome will influence your negotiations.
Knowing that you can negotiate any percentage the attorney proposes should guide the discussion. For instance, you can negotiate a lower percentage if your case is relatively straightforward and has a higher chance of a favorable outcome.
You must not hesitate to discuss your financial situation with your attorney. If they understand your circumstances better, they may be more inclined to lower their fees.
4) Protect Yourself With a Formal Legal Fee Agreement
After agreeing on a fee structure and other associated costs, it is crucial to formalize everything. The written agreement becomes a reference point during disputes. Instead of seeing a formal agreement as a lack of trust, consider it a means of protecting both parties.
Specifically, the agreement should capture the contingency fee structure, how you will handle out-of-pocket expenses, and other related terms. Avoid signing the document if there are any grey areas; clarify everything before consenting to the terms.
A formal agreement will prevent misunderstandings and enhance transparency.
5) How Being Upfront About Finances Can Benefit Your Case
If you are open about your financial situation, your attorney can propose a fee structure that alleviates your financial burden. Attorneys often suggest flexible payment systems to suit their clients’ circumstances.
Your personal injury attorney can devise a customized approach that suits you. Transparency also enhances your relationship with them, which can lead to more effective legal strategies and better outcomes for your case.
Key Takeaways: Navigating Legal Fees With Confidence
It is crucial to discuss fees with your personal injury attorney to enhance your working relationship. It prevents another round of legal battles after settling the main case. The process will run smoothly when both parties understand their relationship’s financial terms.
Knowing your attorney’s fee structure and case expenses and agreeing on a contingency fee will prevent misunderstandings. You must also be open about your finances and formalize your agreement to protect yourself and your lawyer. An agreement must benefit both parties to be effective.
