Tips on Negotiating Attorneys Fees in Personal Injury Case

You are likely to find a "contingency fee" in personal injury cases, accidental claims, property damage cases, or other cases where a large amount of money is in contention.

Since the Supreme Court decided that lawyers can advertise, there have been a number of attorneys who advertise on television. The vast majority of television advertisements are for personal injury cases. This is because most lawyers who accept personal injury cases do so on a "contingency fee" basis. The lawyer's fees will be a percentage of the money they recover for you. This means that clients usually do not have to give the attorney money up front (a retainer fee) in order to hire the attorney.  Note however, you may have to pay some expenses, such as court filing fees, up front.  It also means that the attorney will base the fee on a percentage of any award that you may win.  

In some ways, a "contingency fee" is a gamble. The attorney takes a risk on your case by investing his/her resources to pursue the case with no guarantee of payment. If s/he wins, the pay off can be significant.

The contingency fee percentage varies and some lawyers offer a sliding scale based on how far along the case is when it is settled.  A one-third fee is common.  Also, ask whether the lawyer will calculate the fee before or after the expenses.  This can make a substantial difference, since calculating the percentage of the attorney's fee after the expenses have been deducted increases the amount of money you receive.

Timing of Payment of the Attorney's Fee
Fee Paid Before Expenses	Fee Paid After Expenses
$100,000        award	$100,000       award
-  33,333        1/3 attorney fee	-  20,000        expenses
= 66,667	= 80,000
-  20,000        expenses	-  26,666        1/3 attorney fee
= 46,667        your share	= 53,334        your share