If you’ve been hurt in a car accident, slip and fall, or other accident that was someone else’s fault, you may be struggling with unexpected expenses like medical bills, property repair costs, and lost income. Fortunately, the legal community has established contingency fee arrangements for these situations.
Under contingency fee arrangements, you don’t have to pay a lawyer upfront for providing legal services. Instead, you pay at the end of the case if the lawyer achieves a positive outcome in your case. Here is what you need to know about contingency fees and attorney fees.
Different Attorney Fee Arrangements
Attorneys can use different types of fee arrangements. Some types are more common than others, and some are more common in certain cases.
Various attorney fee arrangements include:
Hourly Fee Arrangement
Hourly fees are one of the most common types of attorney fee arrangements. In this setup, you pay the attorney a specific hourly rate for their time working on your case. This method is frequently used in family and business law matters where the time commitment may vary depending on how the case unfolds.
Flat Fee Arrangement
Some attorneys charge a flat fee—a set amount for their legal services—when they can reasonably predict how much time and effort the case will require. This fee structure is common in legal matters that are typically straightforward or routine, such as uncontested divorces or bankruptcy filings.
Retainer Fee Arrangement
With a retainer, the client pays a large upfront deposit before legal work begins. The attorney then deducts their fees from the retainer as they work on the case. If the retainer is used up, the client may need to pay additional fees, often at an hourly rate. Retainers are common in criminal defense or complex civil cases where ongoing work is expected.
Contingency Fee Arrangement
A contingency fee means the attorney only gets paid if they win the case or secure a favorable outcome for the client. The client doesn’t owe the attorney a legal fee if there’s no recovery. This type of fee is common in personal injury and other civil litigation cases where the client may not have the funds to pay upfront.
Hybrid Fee Arrangement
A hybrid fee combines elements from two or more other fee structures. For example, an attorney might charge a reduced hourly rate and a smaller contingency fee. This model can offer flexibility and is often tailored to the specific needs and risks of the case.
Each attorney can decide which type of fee arrangement to use with clients.
How Lawyers’ Fees Are Determined
Lawyers must follow ethical rules when setting their fees. These rules prohibit lawyers from charging a “clearly excessive fee.” A clearly excessive fee is one that “a lawyer of ordinary prudence would be left with a definite and firm conviction that the fee is in excess of a reasonable fee” after reviewing the facts.
The reasonableness of a fee is based on the following factors:
- The time and labor required for the case
- The novelty and difficulty of the legal questions involved
- The skill necessary to perform the legal services properly
- Whether accepting the case would prevent the lawyer from taking other cases
- The fee customarily charged in the area for similar services
- The amount in controversy and the results the lawyer obtained
- The time limitations imposed by the client or by the circumstances
- The nature and length of the professional relationship with the client
- The experience, reputation, and ability of the lawyer performing the services
- Whether the fee is fixed or contingent
Contingency fee agreements must be in writing in the state of Ohio.
How Contingency Fee Arrangements Work
Here is an example of how a contingency fee agreement might work:
Clare is injured in a car accident that was someone else’s fault. She hires Attorney B to handle her car accident case. Attorney B settles the claim with the insurance company for $100,000. Attorney B charges a one-third contingency fee. Attorney B is paid $33,333 for their attorney fees once the case settles, and Clare gets the rest of the proceeds (minus any legal costs).
Benefits of Contingency Fee Arrangements
Contingency fee agreements offer clients several benefits, including:
- No requirement to pay upfront for legal services
- Shifting the risk onto the lawyer for any financial loss
- Receiving legal services when they need them
- Simplified method of payment
Because lawyers risk not getting paid for their work, they are selective about which cases they accept on a contingency basis.
Legal Costs vs Attorney Fees
In addition to attorney fees, clients may be responsible for the legal costs associated with their case, such as:
- Accident report fees
- Medical record request fees
- Printing costs
- Phone charges
- Witness fees
- Postage costs
- Investigation fees
- Court filing fees
Ask your lawyer about how these costs are handled, as each attorney addresses them differently.
Contact the Sandusky Personal Injury Lawyers at Wisehart Wright Trial Lawyers for Help Today
At Wisehart Wright Trial Lawyers, we take certain cases, including personal injury and workers’ compensation, on a contingency fee basis. We provide legal services upfront at no initial cost to you and only take cases we believe we can win.
Contact us today at (419) 625-7770 for a free consultation with a Sandusky personal injury attorney to learn more about our contingency fee arrangements.