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Contingency Fee

Home   /   Personal Injury Blog   /   Contingency Fee

July 12, 2022 | By Roman Austin Car Accident and Personal Injury Lawyers
Contingency Fee
Contingency Fee

After you suffer an injury in a car accident, you probably need help. You have living expenses and medical bills to pay. But you might not be able to work due to your injury. A Clearwater car accident lawyer can help you pursue compensation for your medical expenses, lost income, and other damages while you focus on your recovery.

As the bills pile up, you need to find a way to recover compensation from those who caused your injury. But lawyers cost money, and you might believe you cannot afford to hire one to handle your case.

Most injury lawyers charge a contingency fee to help accident victims in this very situation. Here is an overview of contingency fees and the benefits you can expect from working with a contingency fee lawyer.

Types of Legal Fees

Lawyers in private practice charge fees for their services. But these fees can take several different forms. The three most common types of legal fees are flat fees, hourly fees, and contingency fees.

Flat Fees

Flat fees usually apply to projects with a fixed amount of work involved. A lawyer might charge a flat fee to write a will or file a trademark application. A flat fee compensates the lawyer based on the amount of work the lawyer performs.

Hourly Fees

Lawyers charge an hourly fee if they do not know the amount of work a project will require. Litigators often charge hourly fees to file or defend a lawsuit. A lawyer might also charge an hourly fee to negotiate and draft a contract. An hourly fee compensates the lawyer based on the amount of time the lawyer works on the case.

Contingency Fees

The amount of a contingency fee depends on the outcome of the case. A typical contingency fee represents a percentage of the settlement or damage award in the case. For example, a lawyer might charge a contingency fee equal to 35% of the money won in a case.

A contingency fee compensates the lawyer based on the outcome produced for the client.

How a Contingency Fee Works

A contingency fee is quoted as a percentage. A typical contingency fee will usually range from 30% to 40%. Under the Rules Regulating the Florida Bar, a lawyer may set the fee by considering the following:

  • The time and work involved in the case
  • The skills needed for the case
  • Whether the case will require the lawyer to turn down other cases
  • The customary fee for similar cases
  • The urgency of the case due to deadlines or statutes of limitations
  • The experience, reputation, and ability of the lawyer

Some lawyers will charge a fixed percentage regardless of the posture of the case. Others will use a tiered fee with different percentages based on how the case ends. A lawyer might charge 35% for a case that settles before filing a lawsuit and 40% for a case that requires a lawsuit to get compensation.

You pay a contingency fee at the end of the case. The lawyer multiplies the percentage by the compensation. The resulting number represents the legal fee.

Suppose that a lawyer charges a 35% contingency fee and negotiates a settlement of $50,000 in compensation for the client. The lawyer has earned a legal fee of $17,500.

Benefits of a Contingency Fee for Clients

Contingency fees provide several benefits for injured clients, including:

No Upfront Fees

Since the fee gets calculated based on the outcome of the case, the lawyer will start on the case without charging any upfront fees.

No Fee for a Loss

You only pay a fee if the lawyer wins or settles the case. If the lawyer loses the case, you do not owe any legal fees.

Evaluation of Your Case

A lawyer must have confidence in a case to take it on a contingency fee. If the lawyer has significant questions about whether you can win or settle your case, they will probably turn it down. 

When a lawyer offers to take a case on a contingency fee, the lawyer believes you can probably win enough compensation to make the case worthwhile.

Incentives for the Lawyer

The more the lawyer gets for you, the more the lawyer earns. Your interests align with your lawyer’s interests because the lawyer has an incentive to get you the maximum amount possible.

Contingency Fees and Litigation Costs

Contingency fees usually do not include litigation costs. You will need to pay litigation costs on top of the legal fee you pay to the lawyer.

Your case will probably have costs. Your lawyer will pay these fees on your behalf to keep the case on track. But at the end of the case, you will need to reimburse your lawyer for the amounts the lawyer paid out of pocket for you.

Examples of litigation costs include:

  • Filing fees
  • Court reporter fees
  • Expert witness fees
  • Medical record costs

Discuss litigation costs with the lawyer before you hire them so you understand what charges you might incur in your case.

Hiring a Contingency Fee Lawyer

Florida requires written contingent fee agreements. You should review the fee agreement carefully before signing it. If you have any questions, discuss them with the lawyer. You and the lawyer can often avoid fee disputes by clearing up any issues before starting the case. To discuss your case and the fee you will pay for a lawyer’s help, contact a Clearwater injury lawyer at Roman Austin Car Accident and Personal Injury Lawyers for a free consultation at (727) 787-2500.

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I have worked closely with Miles Hickman of Roman Austin and he combines a rare blend of fierce trial capabilities with the kind of bedside manners that clients greatly appreciate. This is a standout office of trial attorneys that we feel confident referring clients to get a great resolution.

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They did a great job and even advised what to do if there was no insurance for the at-fault driver and I had to self represent. Ended up being able to get me the fullest...
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They did a great job and even advised what to do if there was no insurance for the at-fault driver and I had to self represent. Ended up being able to get me the fullest payout possible, team was easy to keep in touch with, and Miles was clear in his explanations and helpful with his advice. I still use some of the doctors I connected with through their firm. Would recommend Roman Austin and would use them again.

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I cannot say enough incredible things about Roman Austin Law Firm. John Austin is a phenomenal lawyer. I was in a bad crash that involved a truck totaling my vehicle and sustaining neck and back...
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I cannot say enough incredible things about Roman Austin Law Firm. John Austin is a phenomenal lawyer. I was in a bad crash that involved a truck totaling my vehicle and sustaining neck and back injuries.Going into this process, I was honestly apprehensive about even hiring a lawyer. I was especially wary of those large, commercial firms that just want to move cases quickly. I had heard some great things about Roman Austin, but did my own extensive research and now know why they are a five star firm. What could have easily been a stressful and overwhelming experience turned into something completely different because of John Austin and his team. Choosing them was one of the best decisions I have ever made.John is truly exceptional. He is incredibly detailed, meticulous, and completely devoted to his work. He worked tirelessly on my case, going above and beyond anything I could have ever expected. He spent countless hours (even on weekends), and was always available whenever I needed him. His level of dedication, care, and precision is something you rarely find.Beyond that, he is patient, kind, and deeply compassionate. You never feel like just another case. He genuinely cares about you as a person and wants the absolute best for you. He made what could have been a difficult process feel manageable and supported every step of the way.His entire team was phenomenal. They were responsive, professional, and just as committed. Every interaction felt thoughtful and intentional.The outcome we achieved was fantastic, and I am beyond grateful. I couldn't be more pleased with my experience.If you are considering legal representation, I wholeheartedly recommend John at Roman Austin Law Firm. They are professional, dedicated, and truly invested in their clients.Choosing John Austin made all the difference. He fought tirelessly to ensure that everything I endured was recognized and fairly compensated, and that level of dedication is something I will never forget. I am profoundly grateful not only for the outcome, but for the care, integrity, and unwavering commitment shown every step of the way. Forever thankful I chose them, and truly forever grateful.

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After my accident, I didn't know where to start. Roman Austin made the whole process feel manageable and honestly took a huge weight off my shoulders. The team was kind, responsive, and truly cared about...
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After my accident, I didn't know where to start. Roman Austin made the whole process feel manageable and honestly took a huge weight off my shoulders. The team was kind, responsive, and truly cared about what I was going through. I always felt heard and supported. I'm so thankful I found them and would absolutely recommend them to anyone who needs help.

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Once again Roman & Austin and their team has been a helping hand through hard times after being rear ended by a driver not paying attention. The same day I was set up with community...
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Once again Roman & Austin and their team has been a helping hand through hard times after being rear ended by a driver not paying attention. The same day I was set up with community care to make sure I had to physical and emotional support I needed and they checked on me with updates every week. They got me the full compensation I deserved for my injuries and are the best at what they do.

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