(914) 220-1086If you have been hurt in an accident, you might be feeling a bit overwhelmed by everything – like getting your car fixed, paying your medical expenses, and answering calls from insurance adjusters. You might want to hire a personal injury lawyer but are unsure of how you will pay for it. Fortunately, most personal injury attorneys work on a contingency fee basis – which can allow anyone to retain legal counsel.
Contingency fees are a special type of legal fee agreement where the lawyer only gets paid if they win your case. The client pays nothing upfront and will pay a percentage of their total recovery as an attorney’s fee. These fee arrangements make it possible for anyone to hire a lawyer regardless of their current financial status.
Based in White Plains, the Law Offices of Thomas L. Gallivan fights for the rights of accident victims throughout New York. We handle all personal injury and medical malpractice cases on a contingency fee basis so that everyone can have the legal representation that they deserve. Reach out today to schedule a free consultation with a contingency fee lawyer.
What Is a Contingency Fee?
When you hire a lawyer for a legal matter, one of your first concerns will likely be how you will pay them. Generally, attorneys are paid in one of three ways:
- Hourly Rate: with this type of fee agreement, a lawyer charges a set hourly rate and keeps careful track of their time (typically in 6 minute increments). With an hourly arrangement, most law firms will ask for a retainer up-front, which is like a deposit. The hourly charges will then be deducted from the retainer as the lawyer incurs them.
- Flat fee: for certain types of cases, an attorney will charge a set legal fee. This type of fee agreement is most common in cases where the work is more standard, such as preparing a will or handling an immigration matter. The legal services covered by the flat fee will be specified in the contract.
- Contingency fee: with a contingency fee, the client pays nothing upfront. Instead, the attorney will receive a percentage of the total settlement or verdict at trial. If the case is not successful, then the lawyer won’t get paid. A contingency fee usually does not include expenses associated with the case (such as filing fees).
Contingency fees are popular in certain types of cases, such as personal injury (like a car accident claim) or medical malpractice. For other types of cases, like criminal defense, an hourly rate is more common.
In New York, contingency fees are subject to strict limitations. Any claim for personal injury or wrongful death involving a contingency fee must comply with a schedule adopted by the courts. In New York, a contingency fee of ⅓ – or 33%- is considered fair and reasonable. Alternatively, a contingency fee can be based on a sliding scale as follows:
- 50 percent on the first $1,000 of the sum recovered,
- 40 percent on the next $2,000 of the sum recovered,
- 35 percent on the next $22,000 of the sum recovered,
- 25 percent on any amount over $25,000 of the sum recovered.
Most personal injury attorneys set the contingency fee percentage at 33%, but you should always read any agreement closely before signing it, as a different percentage may be specified.
For medical malpractice cases, New York imposes a maximum sliding scale fee of 30% of the first $250,000 down to 10% of any recovery over $1.25 million. Importantly, for both personal injury and medical malpractice cases, a law firm can make an application for higher fees when there are “extraordinary circumstances” such that the fee limits don’t provide adequate compensation. For example, in a particularly complex medical malpractice case that takes years to resolve, a court may approve a higher attorney’s fee.
So how does this work in practice? Essentially, the contingency fee percentage will be taken out of any settlement or jury verdict that you win. If you get a settlement of $150,000 in a slip and fall case and have a 30% contingency fee, for example, then the attorney’s fee will be $45,000. The contingency fee is applied in any successful case, whether the claim is settled outside of court or goes to trial and results in a favorable outcome.
Importantly, the expenses associated with filing a lawsuit are not included as part of the contingency fee. This includes things such as filing fees, expert witness expenses, administrative costs (like copying and postage), deposition costs, and paying an investigator. These costs will be deducted from your recovery as well, separate and apart from the attorney’s fee.
Most people are fortunate enough not to have to hire a lawyer for a personal injury claim more than once in their lifetime. This can make it hard to understand the intricacies of things like contingency fee agreements. If you are unsure of anything, make sure to ask your Westchester County contingency fee lawyer. They can help you understand what it means and may even be open to negotiating the fee.
What Are the Benefits of a Contingency Fee Arrangement?
Contingency fee arrangements are fairly standard for personal injury cases. There are lots of advantages to this type of fee agreement, particularly when you’re already dealing with medical bills, lost wages, doctor’s appointments, and other issues after an accident.
First, contingency fee arrangements allow everyone to have access to legal representation – regardless of their financial situation. Many people simply lack the extra cash to pay hundreds of dollars an hour for an attorney – or to shell out thousands of dollars for a retainer. With a contingency fee, you pay nothing out of pocket, which means that you can afford to hire a lawyer even if you are currently stressed about money because of the very injury that led to the need for legal counsel.
Second, there is no risk in filing a personal injury lawsuit when you hire a lawyer on a contingency fee. If you don’t win your case – through settlement or a verdict at trial – then you won’t pay the attorney a single dime. This can ease the worry about whether or not you’re making the right decision in taking legal action.
Third, the fact that your lawyer won’t get paid unless and until they win your case means that your interests are aligned. Your attorneys will be motivated to settle your case as quickly as possible and for as much money as possible. Because their fee is based on a percentage – and is dependent on the success of your claim – they will have the same desire as you do to resolve the case favorably.
Fourth, the at-fault party in a personal injury case is usually represented by their insurance company and its own team of adjusters and lawyers. They handle legal claims like yours every day, so they have an advantage when it comes to negotiating a settlement. In many cases, they try to resolve the case for pennies on the dollar by making a lowball settlement offer before an accident victim has the chance to secure representation.
Having a Westchester County contingency fee lawyer can help you level the playing field and get a fair settlement for your losses. Studies show that people who are represented by counsel recover an average of 40% more than people who represent themselves – so it only makes sense to hire a lawyer.
Fifth, contingency fee arrangements mean that a personal injury law firm is unlikely to waste your time (and theirs) by taking a case that is unlikely to succeed. During a free initial consultation, your lawyer will listen to your story, offer you legal advice about the viability of your case, and make a ballpark estimate of its value. This allows you to make a more informed decision about whether it makes sense to proceed with a personal injury claim.
The downside of a contingency fee agreement is that when you receive a check for your case, the total amount will be lower than what you may have expected – because both the attorney’s fee and any expenses will be deducted. As long as you understand this going into your case, however, it isn’t really a drawback – particularly when you consider that you may not have been able to bring a claim at all without a contingency fee.
Reach Out to Talk to a Westchester County Contingency Fee Attorney
If you were hurt in an accident, you might not be sure of your rights or where to turn for help. Our law firm is dedicated to helping everyday people get maximum compensation for their personal injury claims – along with some measure of justice. We handle all personal injury cases on a contingency fee basis, so you don’t have to worry about how you’ll pay for a lawyer.
The Law Offices of Thomas L. Gallivan represent injury victims throughout Westchester County and New York State. From our base in White Plains, we advocate for the rights of our clients and work hard to get them the compensation that they deserve for their injuries. To learn more or to schedule a free consultation with a contingency attorney, call our law firm at 914-220-1086 or fill out our online contact form.
When Will I Pay My Contingency Fee Attorney?
In contingency fee cases, your lawyer won’t get paid unless and until you do. Any attorney’s fee will come out of the settlement check issued by the insurance company. You will not pay a single dime out of your own pocket throughout the lawsuit. Instead, the fee will be deducted from the check at the end of your case – only if you win the case.
If you have been hurt in an accident, the Law Offices of Thomas L. Gallivan can help. Give us a call today to talk to a White Plains, NY personal injury lawyer.
Who Covers the Cost of Filing a Lawsuit?
In a typical contingency fee case, the law firm that represents you will front the costs of all litigation expenses. For example, if they need to file a lawsuit, they will pay the filing fee and then this expense will be paid out of any settlement that you receive. This is the most common arrangement for contingency fee cases, but you should always read your agreement before signing it to understand exactly what your obligations are when it comes to costs.
If you have been hurt in an accident, the Law Offices of Thomas L. Gallivan will represent you at no upfront cost. Give our law firm a call today to schedule a free consultation with a White Plains contingency fee attorney.
