Your involvement in a serious accident in Texas can come with significant costs. You may find yourself facing a mountain of medical expenses, property repair costs and lost wages. The last thing you may want is the additional cost of hiring a personal injury attorney in San Antonio. Luckily, this concern has been resolved by attorneys offering to represent clients on a contingency fee basis.
What Are Contingency Fees?
When you see an attorney in Texas advertise that they “operate on a contingency fee basis,” this means there are no fees unless the lawyer wins the case. The attorney’s fee or charge is contingent upon the client receiving a settlement or judgment award for his or her injuries.
Contingency fees allow a victim to seek justice with high-quality legal representation without requiring any upfront or out-of-pocket costs. They instead pay the attorney in the form of a percentage of the overall amount won, and only if the case is successful. This protects the client from any financial risks associated with bringing the claim.
How Does an Attorney Get Paid With Contingency Fees?
Contingency fee arrangements work by using a percentage system. Before any contracts are signed to retain the Texas injury lawyer, the fees should be explained and expressed transparently. The attorney should give the client the exact percentage of his or her rate.
Typically, this ranges from about 33 percent to 40 percent, with factors such as case complexity and whether it goes to a trial influencing the final cost. The personal injury lawyer will then work on the case, fronting any fees on the client’s behalf.
Depending on the law firm, other costs (such as the price to hire experts) may also be covered upfront. If an insurance company refuses to offer a settlement and the case cannot be resolved, the attorney will not charge anything for services already performed. The attorney will only get paid if the client does.
What Are the Advantages of Contingency Fee Agreements?
The benefit of hiring an accident lawyer on a contingency fee basis is that you will not have to pay your attorney out of pocket, win or lose. This fee arrangement makes legal representation affordable to injured accident victims, which helps ensure justice for those who otherwise decide not to take legal action because of the costs. If your case is successful, the fee will be deducted directly from the settlement or judgment award rather than being billed to you directly from the law firm.
This can help you enjoy greater financial peace of mind during what may be the most difficult time in your life. Another advantage is that contingency fees motivate the attorney to achieve the best possible case outcome for the client. Since the attorney gets paid as a percentage of the overall amount won, maximizing this amount is in the attorney’s best interests. This in turn can result in a greater settlement for you.
Other Possibilities for Attorney’s Fees
Although contingency fees are the most common type of payment arrangement among personal injury lawyers in Texas, other possibilities are an hourly rate or a flat fee. Be sure to ask how an attorney charges before signing up to prevent any surprises or disputes regarding fees later on.
For a free consultation to discuss payment structures in more detail or ask about our contingency fee arrangements, contact the Law Offices of Maloney & Campolo.