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Lawyers Fees in Your Personal Injury Law


In most personal injury cases, a lawyer will charge a contingency fee. This system allows the injured party to hire an experienced lawyer without having to front the cost of legal fees.

In a contingency fee arrangement, a lawyer’s fees will be deducted from the final settlement in your case -- or from the final verdict at trial. Most personal injury lawyers will also deduct any expenses that were covered by the lawyer. The lawyer’s contingency fee percentage will typically vary based on the stage of your case. In the sections that follow, we'll cover some things to keep in mind when it comes to your injury settlement and how your lawyer will be paid.

Contingency Fee Percentages

The typical personal injury lawyer will charge a contingency fee to handle your case. Some state statutes limit the percentage that a lawyer can take as a contingency fee. Most contingency fees are between 33 and 40%, but you can always try to negotiate a reduced or alternative agreement. In the majority of cases, a personal injury lawyer will receive 33.33% (or one third) of any settlement. For example, if you receive an offer of $30,000 from the wrongdoer or his insurance company in your case, you will receive $20,000 and your lawyer will receive $10,000. (Learn more about hiring and working with an attorney and when it makes sense to represent yourself.)

Settlement Before Filing a Lawsuit 

Most states provide shifting fee limits based on the stage of the case. Your lawyer should send a demand letter to the person or business (wrongdoer) that injured you. The letter will explain the injuries and demand payment. If you have a good case, the wrongdoer will typically make a counteroffer and there will be further negotiations. This all occurs before you file a lawsuit (file a formal complaint in court). Where you settle before filing a lawsuit, it is likely that the lawyer cannot receive more than 33% of the settlement.

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