How Does a Contingency Fee Work for a Personal Injury Case?

Most people understand that if they are hurt in an accident, they can consult with an attorney free of charge to learn their rights and get advice about how to proceed. But what happens from there? The usual arrangement between attorneys and clients in personal injury cases is the contingency fee. Under this agreement, the attorney finances the prosecution of the case. There are no upfront attorney fees – no hourly billing for work done – although some lawyers do charge for filing fees. The client only pays after the attorney has secured compensation through a negotiated settlement or a verdict at trial. At that time, the attorney deducts litigation expenses then takes a portion of the remainder, in the range of 30 to 40 percent.

The contingency arrangement provides many advantages for the injured plaintiff. First, it motivates the attorney to recover the maximum damage award possible. Second, it allows injured plaintiffs from all walks of life to have their day in court. Litigation is very expensive and if plaintiffs had to bear the costs, very few would be able to prosecute a case. Under the contingency agreement, the attorney advances payment for:

Discovery
Depositions of witnesses
Production of documents
Court filings
Court motions
Expert witness fees
Trial preparation

These expenses pile up quickly, and not every attorney has the resources to see a case all the way through a trial. A plaintiff should choose a personal injury attorney wisely at the outset of the case. An attorney who does not have the resources to take a case through trial will face pressure to settle the case early or refer the case out to another law firm. Shopping around for representation allows you to avoid these pitfalls.

Cronin, Fried, Sekiya, Kekina & Fairbanks, Attorneys At Law, is the largest personal injury law firm in Hawaii. To learn how we can effectively litigate your case, call 808.524.1433 or contact us online to schedule a free consultation.