Instead of asking for money upfront or charging hourly fees, a personal injury attorney in Virginia usually works under a contingency fee arrangement. This means they receive a percentage of the award negotiated for their clients–if and only if they are successful.
The primary goal of this fee structure is to reduce the financial stress for clients who have already suffered an injury or loss and may be struggling financially as a result. However, the percentage lawyers take in personal injury cases can vary depending on the circumstances of the case.
Typical Fee Arrangements for Personal Injury Cases
In contrast to other legal services, such as drafting a will, the cost of hiring an attorney for personal injury cases typically does not include hourly rates or retainers. Telephone or in-person consultations are also usually free of charge. The meeting is used to discuss the circumstances of your case, evaluate any relevant documents or other evidence you may have, and discuss the next steps for making a claim.
A common industry practice for personal injury lawyers is to receive one-third of the final settlement amount. The percentage could increase if the case goes to trial and is litigated.
If the case involves suing the federal government, it falls under the Federal Tort Claims Act. In this scenario, legal fees are set to 20% of the gross settlement amount if resolved through the administrative claims process. The percentage increases to 25% if the case ends up in federal court.
Understanding Contingency Fees
A contingency fee means that payment to the law firm depends on the attorney securing a settlement or court award on behalf of the client. Clients are not required to make any upfront payments for legal representation because the law firm covers all the legal expenses until the case’s resolution.
Because personal injury law firms employ percentage-based calculations, the precise amount of their fee can vary from one case to another and depend on the severity of the client’s injuries and other case-specific factors. Nonetheless, clients should discuss this fee structure, the proposed percentage, and how long personal injury cases take to settle with an attorney before making a decision to hire them or signing any agreements.
Why Contingency Fees Make Sense
By making the fee a percentage of the ultimate settlement amount, clients often are more confident that their attorney will fight hard to win a favorable outcome. This way, the interests of both the attorney and the client align because securing the largest settlement possible is the best result for both parties.
Contingency fee structures offer several advantages for the client, including:
- Not having to cover upfront or out-of-pocket costs, especially if the client is having financial difficulties or isn’t able to work as a result of the accident
- Not paying any fees if they do not don’t settle or win their case
When a victim hires an attorney in a personal injury case, the law firm assumes most of the financial risk and makes sure filings are made within the Virginia personal injury statute of limitations.
In Conclusion
Contingency fee arrangements help personal injury clients get the financial recoveries they are entitled to, without adding to their stress and worries. Nobody should be forced to forgo their right to seek compensation for injuries caused by another party due to an inability to cover legal fees.
Operating under a contingency fee system, an attorney is taking on the risk that they won’t earn a fee at all if they fail to secure a settlement or court award. Coastal Virginia Law has the expertise to guide our clients during a personal injury claim made against another party by leveraging our hard-earned legal skills to secure the maximum compensation for you!
