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Are Lawyers Lying When They Say “Representation is Free If They Don’t Win”?
When you’re represented by Rickard, Drew & Nix, you won’t have to pay up-front. As personal injury lawyers who operate on a contingency fee basis, anyone who needs experienced, qualified representation can have a dedicated team of personal injury lawyers in Atlanta defend them, regardless of their ability to pay.
Contingency fees are particularly important in personal injury law but don’t really work for attorneys representing people in other types of legal proceedings like criminal defense, divorces or bankruptcy.
All types of people get into auto accidents, including many hourly workers who don’t have tens of thousands of dollars in savings. If you’re living paycheck to paycheck and an accident has just robbed you of your only source of transportation or your ability to work, finding thousands of dollars to hire an attorney may seem impossible – and it likely would be if personal injury lawyers charged a retainer or hourly.
Because of the financial challenges so many injured people face after accidents, injury tort law can only effectively serve its vital role in the American legal system thanks to contingency fees.
What Is a Contingency Fee?
A contingency fee means that a lawyer is paid a percentage of your negotiated claim payment or verdict after your case has been successfully concluded. In other words, they only receive money if they successfully negotiate a settlement or win a verdict on your behalf.
A secondary benefit of contingency fees is the added incentive it provides for attorneys since your lawyer’s “fee” will be directly based on their ability to maximize your payment. If your attorney doesn’t win, they don’t get paid. If they encourage you to accept 20 percent less than what you deserve, they will receive 20 percent less compensation than they would otherwise receive had they fought harder on your behalf.
Ultimately, contingency fees represent a risk-free pay agreement for plaintiffs: if you win, you get the cash settlement, and if you don’t, you’re not responsible for your lawyer’s legal costs.
Since the payment amount your lawyer receives is based entirely on your eventual settlement or verdict, it is in your representatives’ best interest to maximize your case’s earnings. Your attorney will not only work hard to win your case but will fight to help you reach the highest settlement possible.
It’s also worth noting that contingency fees always come out of your eventual payment from the insurance company or the defendant – never your pocket. In essence, you never have to pay the attorney, even at the end of your case. The money they receive will come from the responsible party’s insurance company.
Contingency Fees Versus Hourly Pay Rate
Hourly fees are paid to attorneys regardless of a case’s outcome. Hourly rates and retainers are the norm in most non-tort legal fields. Essentially, contingency fees are only commonly used in civil cases where damages are being sought since the contingency fee will be a percentage of won damages.
Contingency fees are most common in personal injury, worker’s compensation and wrongful death cases. Divorce and criminal attorneys usually work on an hourly and/or retainer basis.
How Does a Contingency Fee Work?
Lawyers might adjust their contingency fee rate based on a variety of factors. Some common contingency fee ranges are around 33 percent (or a third of your case’s total earnings) to about 40 percent of your settlement or verdict. If you had a settlement of $50,000 from your personal injury case, and your lawyer’s contingency fee is 30 percent, they will be paid $15,000.
Your attorney may then need to pay medical liens and other expenses out of the remaining $35,000 of the settlement. Depending on the extent of fees or liens, the check you would receive could be significantly less than $35,000.
Ultimately, contingency fee agreements allow everyone pursuing a personal injury case to have well-qualified counsel. Instead of opting for whoever’s cheapest, you can have highly-rated representation without spending a dime.
Get an Expert Atlanta Personal Injury Attorney Without Worrying About the Costs
Receive reputable, experienced personal injury representation in Georgia with the Law Office of Rickard, Drew & Nix. If you’ve suffered an injury at someone else's hands, our personal injury lawyers will fight to get you the compensation you deserve. Schedule a free consultation today by calling (404) 588-1001.
