Most car accident lawyers represent clients without charging upfront fees. Instead, they work on a contingency fee basis. This arrangement allows accident victims to access skilled representation against deep-pocketed insurance companies regardless of their financial situation. If the lawyer wins your case, you pay a pre-agreed percentage of your compensation. If the lawyer loses, you pay nothing.
Attorney contingency fees of 33% to 40% are common for car accident claims, but there is no set amount. State laws in Florida and Georgia require lawyers to keep their fees reasonable, and Florida places specific limits on how much a personal injury lawyer can charge.
Table of Contents
Understanding Contingency Fees for Car Accident Cases
A contingency fee is a payment method in which a lawyer only receives payment if they win the case. The fee is generally a pre-agreed percentage of any settlement or judgment obtained by the lawyer. A contingency fee agreement prevents your lawyer from collecting a fee unless you recover compensation for your injuries. This arrangement enables you to receive top-quality representation without incurring upfront costs.
The details of a contingency fee arrangement will vary from lawyer to lawyer, and every variation can affect how much of your compensation stays in your pocket. It’s crucial to understand the important elements of a contingency fee agreement so you can compare offers and make an informed decision.
Your Right to Be Informed
You have a right to know exactly what you’re getting into before signing a contingency agreement. Florida Rule of Professional Conduct 4-1.5 requires a lawyer to provide a statement of the client’s rights. Your rights include understanding your payment terms, knowing your lawyer’s experience level, and meeting the lawyers who will handle your case.
Georgia Rule of Professional Conduct 1.5 doesn’t require a statement of rights, but both states require contingency agreements to include all important details, including the following:
- The percentage of your compensation that the lawyer will collect from a pre-trial settlement, trial verdict, or judgment on appeal.
- The party who will pay litigation costs while the case is ongoing, or if you lose.
- Whether the lawyer calculates the contingency fee before or after deducting costs.
- The consequences of switching lawyers or dropping your case.
In Florida, you have a right to cancel a contingency agreement in writing within three business days with no penalty.
Why Contingency Fee Arrangements Are Ideal for People Injured in Car Accidents
Contingency fee agreements empower injured individuals to access lawyers who possess the skills and experience to effectively represent them against the experienced and well-resourced lawyers of wealthy insurance companies. When you’re injured, hospital bills and loss of work put you in a disadvantaged position. If you had to pay your lawyer by the hour, you’d need a large retainer of several thousand dollars. For most of our clients, this would be an insurmountable barrier to justice.
In a contingency fee arrangement, your fees are deducted from your compensation, not from your pocket. You only pay if you win, so the lawyer takes all the risks, not you.
Our compassionate car accident lawyers understand how stressful it is to deal with an injury from a car accident. We handle all car accident claims on a contingency fee basis, allowing us to assist as many injured individuals as possible in pursuing the justice they deserve.
Litigation Costs Are Separate from Fees
Your lawyer’s fee is for their time and services. It includes the time your lawyer spends preparing court documents, researching the law, negotiating for a settlement, advising you, representing you at hearings, and performing other advocacy services. Litigation costs are the expenses of bringing your case. They include the following:
- Filing fees
- Court costs
- Document fees
- Travel costs
- Expert witness fees
- Photocopying and mailing fees
- Fees for serving legal documents
Many car accident attorneys cover these fees up front and collect them from any compensation you recover.
Do Lawyers Calculate Fees Before or After Deducting Expenses?
Many attorneys deduct costs before applying contingency fees. For example, if you recover $100,000 and have incurred $30,000 in costs, the attorney may apply the contingency fee to the $70,000 you have left rather than the $100,000. Neither Georgia nor Florida’s Rules of Professional Conduct requires this approach, but both states require contingency fee agreements to specify whether contingency fees apply before or after deducting costs.
Who Pays Costs if You Don’t Win?
Your contingency fee agreement must specify who is responsible for the costs if you don’t recover compensation. The terms may vary depending on the reason you didn’t receive compensation. For example, many lawyers will agree to cover the costs they try but are unsuccessful. However, if you switch lawyers, drop your case, or refuse compensation, the terms may be different. It is crucial to ask your lawyer these questions before you sign your agreement.
At Farah & Farah, we’re dedicated to taking the stress out of the legal process. If we lose your case, we’ll cover the costs, and you’ll owe us nothing. We are a client-centric law firm and treat our clients like family. We won’t stop fighting until we get you the compensation you deserve.
What Percentage Will My Lawyer Take if I Win a Settlement?
Most car accident lawyer fees range from 33% to 40%, but they can vary. In Florida, a lawyer generally cannot charge more than 33 1/3 %, unless the defendant files an answer. Filing an answer means the defendant is contesting the case, requiring your lawyer to do more work. Therefore, the Florida Rules of Professional Conduct increase the maximum contingency fee to 40%. The limits are lower if compensation is $1 million or more. The Georgia Rules of Professional Conduct do not impose specific limits on contingency fees. However, both states require attorney fees to be reasonable. You also have the right to negotiate the contingency fees.
When setting contingency fees, lawyers in Florida and Georgia must consider several factors, including the following:
- How much time, labor, and skill does your case require?
- Will the lawyer need to reject other cases to avoid conflicts of interest?
- How much do other lawyers in the local area charge for similar services?
- What is the lawyer’s level of skill, experience, and reputation?
Is a Car Accident Lawyer Worth It?
A contingency fee of a third or more of your compensation may seem like a lot. However, a proven car accident attorney can maximize your compensation, so you more than make up for the fee. When you go up against an insurance company, you also go up against its lawyers. Insurance companies use every trick in the book to minimize damages or avoid paying at all:
- They’ll pressure you to accept a lowball offer and sign away your rights.
- They’ll use your statements against you and say you admitted fault.
- They’ll hire forensic experts to say you caused the accident.
- They’ll spy on you and accuse you of exaggerating your injuries.
- They’ll ignore your calls and slow-play you, hoping to run out the clock.
Dealing with an insurance company on your own is stressful and overwhelming, and it can cost you much more than car accident lawyer fees.
We Don’t Get Paid Until You Do
Being injured in a car accident means you’ve already lost too much. You shouldn’t have to gamble your own money or be deprived of justice when someone else’s carelessness puts you in this position. We have the financial resources to take on powerful corporations and insurance companies, and we know what it takes to secure the compensation you deserve.
Our auto accident attorney fees are nothing unless and until we win your case and recover compensation on your behalf. We’re so confident that we can maximize your compensation that we’ll also cover your costs at our own risk, so you have nothing to lose by choosing Farah & Farah.
Schedule your free consultation today. Call (877) 245-6707 or contact us online.
