After a serious accident, hiring a lawyer might seem like another expense you cannot afford. You may already be dealing with medical bills, lost wages, and the cost of repairing your vehicle. The last thing you need is another bill.
Fortunately, most personal injury lawyers do not charge clients by the hour. Instead, they work on a contingency fee basis. This means the lawyer’s payment depends on the outcome of the case.
Understanding how personal injury lawyers get paid can help you make an informed decision about protecting your legal rights.
How Do Personal Injury Lawyers Get Paid?
Most personal injury attorneys in Kentucky work on a contingency fee basis. Under this arrangement, rather than paying a lawyer upfront or receiving monthly bills, you would agree to pay a percentage of the compensation recovered in your case.
If your attorney were to obtain a settlement or court award, their fee would come from the recovery. If your case does not result in compensation, you generally will not owe attorney’s fees under a standard contingency fee agreement.
This arrangement makes legal representation available to people who might struggle to afford an attorney. Contingency fees also give lawyers a financial interest in achieving a successful result. The attorney’s payment depends on securing compensation for the client.
How Does a Contingency Fee Work in a Personal Injury Case?
The easiest way to understand contingency fees is to look at an example.
Suppose you were injured in a car accident in Kentucky. After investigating your case and negotiating with the insurance company, your attorney secures a $100,000 settlement.
If your contingency fee agreement provides for a 33% attorney’s fee, your attorney would earn $33,000. You would recover the remaining $67,000.
Your final payment may be lower after case expenses, medical liens, unpaid medical bills, or other required deductions.
The fee agreement should explain whether expenses are deducted before or after the attorney’s percentage is calculated.
How Do Contingency Fees Benefit Injured Clients?
Contingency fees offer a number of important advantages to people recovering from serious injuries.
You Do Not Pay Large Fees Upfront
A serious injury can place enormous pressure on your finances. A contingency fee allows you to hire an attorney without paying a large retainer or ongoing hourly legal fees. This means you can focus on your recovery instead of worrying about how to pay your lawyer every month.
Your Lawyer Is Incentivized to Pursue Compensation
Under a contingency fee arrangement, your attorney’s payment depends on recovering compensation.
This creates a shared financial interest in pursuing a successful outcome. However, your lawyer must still act in your best interests and follow your decisions about whether to accept a settlement.
You Can Pursue Complex Cases
Some personal injury claims require accident reconstruction experts, medical testimony, and months of legal work.
These services can be expensive. Under many contingency fee agreements, law firms advance litigation costs and seek reimbursement when the case concludes.
How Much Do Personal Injury Lawyers Make From a Case?
The amount a personal injury lawyer earns depends on the case’s outcome and the terms of the fee agreement.
Law firms must pay for staff, office expenses, insurance, technology, and other operating costs. Attorneys may also spend substantial time and money working on cases that never result in compensation.
A contingency fee compensates the law firm for its work and the financial risk involved in pursuing the case.
Contact Hendy Johnson Vaughn for a Free Consultation With a Louisville Personal Injury Attorney
If you were injured because of someone else’s negligence, concerns about legal fees shouldn’t prevent you from pursuing your options.
Contact Hendy Johnson Vaughn at (859) 578-4444 for a free consultation with a Louisville personal injury lawyer today. We provide our legal services on a contingency fee basis, so you won’t owe attorney’s fees unless we recover compensation for you. We believe injured victims deserve the opportunity to seek justice and hold negligent parties accountable.
We proudly serve Jefferson County, Kenton County, and its surrounding areas:
Hendy Johnson Vaughn – Louisville, KY Office
600 W Main St Ste 200
Louisville, KY, 40202
(859) 578-4444
Hendy Johnson Vaughn – Fort Mitchell, KY Office
2380 Grandview Dr
Fort Mitchell, KY, 41017
(859) 578-4444