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Bronx Personal Injury & Real Estate Blog

Wednesday, April 28, 2021

What Is a Contingency Fee?

After an accident, the financial pressure can hit in a big way. On top of your injuries and the entire overwhelming experience, you may be confronted with some financial realities that are staggering. As you get the medical care you need, you watch the medical bills quickly pile up. You may have missed work and your otherwise steady stream of income has been impacted. The prospect of hiring an attorney when you are already faced with so many financial difficulties may seem like an insurmountable burden. You may hear personal injury attorneys proclaim that you do not need to worry about the payment because they do not get paid unless and until you get paid! What, however, does this even mean? Well, it comes down to the fact that almost all personal injury attorneys are paid on a contingency fee.

What Is a Contingency Fee?

Law firms are, at their cores, businesses. To run a business, you must earn money. That is just a reality. This is why almost all attorneys will be compensated for services rendered. In the context of a personal injury action arising from something such as an auto accident or slip and fall that causes a person harm, there is a mechanism in place that will allow a person to retain trusted legal counsel for their personal injury claim while they confront some harsh financial realities caused by the accident. Through a contingency fee arrangement, an injury victim is able to retain dedicated personal injury legal counsel without having to worry about attorney’s fees. How does this work?

In a contingency fee arrangement, the lawyer is compensated for services rendered by deducted fees from the final personal injury settlement awarded to the client. If the claim went to trial, then the fees are deducted from the damages awarded in a favorable court verdict. Should the claim not settle or the verdict be unfavorable, the lawyer would not collect fees. The contingency fee is usually a percentage of the settlement amount and that percentage will increase if a lawsuit is filed on the claim. Often, the fee is 33 percent of a settlement and 40 percent if a lawsuit is filed.

Is it worth it to hire an attorney even on a contingency fee basis for your personal injury case? A knowledgeable and skilled personal injury attorney can often get you a much higher settlement award than what would be offered to you should you proceed unrepresented. It is an unfortunate reality that insurance companies will look to take advantage of those who do not have trusted legal counsel by their side. Furthermore, personal injury attorneys are often able to successfully work with medical providers to reduce medical bills so that a lower amount of the settlement award needs to go towards medical expenses.

New York Personal Injury Attorney

Make sure you get the most out of your personal injury claim. Get in touch with the Law Office of Ryan Goldstein as soon as possible. Contact us today.


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