Philadelphia Contingency Fee Lawyers
If you were hurt in an accident, you may be dealing with many financial concerns, along with physical ones. Medical bills could be mounting. You could be out of work for a prolonged period of time. You could be facing car repair bills you didn’t anticipate.
You are likely hesitant to add another expense to the mix in the way of an attorney’s fee. However, you might be needlessly worrying, as contingency fee arrangements can serve a critical purpose in a personal injury case. The lawyers at Cousin Benny Personal Injury work on a contingency-fee basis. We explain this fee agreement in more detail below and can discuss the arrangement further during a free, no-obligation consultation.
What Is a Contingency Fee?
Many attorneys work on an hourly basis, in which they charge the client for each hour of their work based on an hourly rate. Others use a retainer, in which they require a large upfront payment and then bill for time that exceeds that amount. A contingency fee is a different way of charging clients for legal services.
Contingent means “conditioned on.” A contingency fee lawyer agrees to take a legal case with no guarantee of payment for their services. They are compensated for their time and efforts if they successfully resolve the case. For example, in a car accident case, a personal injury lawyer might condition payment for their services on obtaining a settlement or verdict.
Rather than charging an hourly rate or requiring a retainer fee, the attorney receives a percentage of the compensation that they recover through a verdict or settlement. The percentage is agreed upon between the lawyer and client.
What Types of Cases Offer Contingency Fee Arrangements?
Personal injury cases are the most common type of cases that operate on contingency fee arrangements. At Cousin Benny Personal Injury, we accept the following types of cases on a contingency fee basis:
- Bicycle accidents
- Car accidents
- Catastrophic injuries
- Construction accidents
- Dog bites
- Electric scooter accidents
- Motorcycle accidents
- Pedestrian accidents
- Premises liability incidents
- Slip and fall accidents
- Truck accidents
- Uber accidents
- Workplace accidents
- Wrongful death
Other types of cases that commonly work on a contingency fee basis include Social Security Disability insurance and workers’ compensation cases. Attorneys and clients could agree for other types of cases to be taken on contingency.
Pennsylvania law prohibits using contingency fee arrangements in certain cases, including criminal cases or any fee in a domestic relations matter when the payment or amount is contingent upon the securing of a divorce or on the amount of alimony or support obtained.
How Contingency Fees Work
Let’s take a typical example to demonstrate how contingency fee arrangements work. Imagine that you are injured in a car accident in Philadelphia. You contact a personal injury attorney. They explain that they work on a contingency-fee basis. You agree to a fee of 33% if the attorney is able to settle your case or 40% if it results in a trial. This is sometimes referred to as a graduated contingency fee percentage, which charges an increasingly higher rate for the amount of time and work that an attorney has to put into a case. Even higher rates may apply if the case involves an appeal.
In Example A, your lawyer is able to secure a settlement of $100,000. They take their 33% or $33,000 in this case. You receive the remainder, less any costs.
In Example B, your lawyer files a lawsuit in your case. Your case goes to trial. Your lawyer secures a verdict of $100,000. Your lawyer receives their 40% fee of $40,000 and any costs. You receive the remainder.
Now, in either example, if your personal injury attorney did not recover compensation, you would not be responsible for paying for attorney fees. 33% or 40% of 0 is 0. However, you might still be responsible for paying for legal costs.
Benefits of Contingency Fee Arrangements
Contingency fee arrangements can benefit clients in a number of ways, including:
- No upfront fees: Contingency fee arrangements allow people to retain legal services when they need them without having to pay for them until they can afford to do so.
- Access to justice: Individuals, including personal injury victims, can pursue valid legal claims without being limited by their financial situation.
- Limited risk: If the attorney is not able to secure the desired result, the client does not have to pay for their legal fees.
- Motivated legal representation: Contingency fee lawyers know that they stand to make more money if they secure better results, so this helps align the client’s and the lawyer’s interests.
- Transparency: Clients are made aware of contingency fee percentages and costs when they sign their agreement, so there are no surprises.
An experienced personal injury lawyer from our law firm can walk you through our fee arrangements and how they can benefit you.
Legal Costs vs. Fees
One aspect of contingency fee arrangements that clients should be aware of is the difference between attorney fees and legal costs. Attorney fees are the fees that clients pay for their attorney’s services. This is traditionally done by paying an hourly rate, but in the case of contingency fee arrangements, it is the percentage that the client pays if the attorney is successful in recovering compensation.
On the other hand, legal costs are the costs associated with handling the case that are not directly related to the outcome of the case. Legal costs can include the following:
- Accident report retrieval fees: Many jurisdictions require fees to provide accident reports and police reports. These reports may contain crucial information, so they are a useful form of evidence.
- Medical record request fees: Your healthcare providers may charge fees to print out your medical records. Many healthcare clinics use third-party providers who charge these fees.
- Printing costs: Your attorney could charge you for copies they must make for your case. These costs can include the expense of paper, toner, and related costs.
- Postage: If physical documents must be sent through the mail, your lawyer may pay for postage and charge it back to you.
- Investigation costs: In some cases, your lawyer may hire an independent private investigator to help prove necessary elements of your case.
- Expert witness fees: Some cases call for the employment of expert witnesses who can provide critical information to prove liability or the full extent of damages.
- Filing fees and court costs: Filing fees and court costs vary based on the case and jurisdiction
- Deposition costs: Depositions are recorded interviews of witnesses and/or parties involved in a case. There are costs for a court reporter and possibly a video recorder.
- Other litigation costs: Additional costs may include subpoenas and other discovery costs.
Under a no-win, no-fee arrangement, clients do not pay attorney fees. However, they may still be responsible for compensating the attorney for the costs they incurred in bringing forth the case.
Pennsylvania Laws on Contingency Fees
Rule 1.5(c) of the Pennsylvania Rules of Professional Conduct sets the following rules regarding contingency fee agreements:
- The contingency fee agreement must be in writing.
- The agreement must state the method by which the fee is determined, including the percentage or percentages that accrue in case of a settlement, trial, or appeal.
- The agreement must state how litigation expenses or other expenses will be deducted from the recovery and whether they are deducted before or after the contingent fee is calculated.
- The lawyer must provide the client with a written statement after the case is concluded by showing the remittance to the client and the method by which it was determined.
Additionally, the amount of the fee should not be excessive. Factors that are considered in determining whether a fee is excessive include the following:
- Whether the fee is fixed or contingent
- The time and labor required by the case
- The novelty and difficulty of the legal questions involved in the case
- The skill necessary to properly perform the legal services
- The likelihood that accepting the case will prevent the lawyer from accepting other cases, if apparent to the client
- The fee that is ordinarily charged in the same area for similar legal services
- The amount involved and the results obtained in the case
- The time limitations imposed by the client or by the circumstances
- The nature and length of the professional relationship with the client
- The lawyer’s experience, reputation, and ability
At Cousin Benny Personal Injury, we believe in transparency regarding legal fees. We can discuss our contingency fee arrangements and how we can help.
What Can a Contingency Fee Lawyer Do for Me?
To understand the value of a contingency fee attorney, it’s important to realize the important role that they play in your case. Personal injury lawyers serve many critical roles, including:
- Legal review: A personal injury attorney can review your case and use their knowledge of the law to determine whether you have a viable legal claim.
- Investigation: Your lawyer can review accident reports, videos of the accident scene, and photos, interview witnesses, and identify responsible parties.
- Evidence gathering and preservation: Your lawyer can identify, gather, and preserve valuable evidence in your case.
- Claim management: Your lawyer files insurance claims and legal paperwork on your behalf. They take action within prescribed time limits to protect your legal rights. They also prepare compelling demand packages, requesting fair compensation based on sound legal arguments.
- Negotiation: One of the most important roles of your personal injury lawyer is to negotiate for full and fair compensation on your behalf. They handle this critical task on a routine basis, helping you to level the playing field against insurance companies committed to paying you as little money as possible.
- Litigation: If your case goes to trial, your lawyer handles the filing of the legal complaint, discovery requests, and trial preparation.
- Expert witness handling: In some cases, your personal injury lawyer may hire expert witnesses to help with your case. They may vet proper expert witnesses, gather medical records, obtain expert testimony, request comprehensive reports, and examine them on the witness stand.
Dealing with insurance companies after you have suffered serious injuries can be extremely challenging. You might decide to take a settlement offer that is well below its value or abandon your claim entirely if you are not represented by a zealous advocate. You have the potential to maximize your personal injury claim with the help of an experienced attorney. And having a lawyer who does not charge upfront for their services and only charges if they win your case ensures that your risk is minimized.
What Questions Should I Ask About Contingency Fee Arrangements?
Before you hire a lawyer to handle your personal injury case, you can prepare a list of questions. In addition to asking about the lawyer’s experience and track record of success, you can ask specific questions about the fee arrangement, such as:
- What is the percentage that you charge for cases?
- Does the percentage change based on how the case is resolved?
- Is there a different percentage if a personal injury lawsuit must be filed?
- Are there certain legal costs that I will be responsible for?
- What happens if you don’t win my case? What fees or costs will I be responsible for?
- Can I see your contingency fee agreement in writing?
- What are the terms of the contingency fee agreement?
Cousin Benny Personal Injury offers free consultations to prospective clients, which is the perfect time for you to ask any questions about fees or any other financial concerns you have.
Contact Our Philadelphia Contingency Fee Lawyers
If you were injured in an accident that was caused by someone else’s negligence, you should not have to pay the consequences. And with a contingency fee arrangement, you don’t have to. An experienced personal injury lawyer from Cousin Benny can review your situation and explain our fee arrangement during a free consultation. Contact us today to learn more.