If you’ve been injured in an accident, you might worry about how to afford a lawyer. Hiring an attorney can seem unaffordable, especially when you’re already facing medical bills and lost wages.
The good news is most Tampa personal injury attorneys, including ours, work on a contingency fee basis. This arrangement allows you to focus on recovery without the stress and financial burden of upfront legal costs.
What Is A Contingency Fee Arrangement?
A contingency fee is a payment structure where your lawyer only gets paid if you win your case. Instead of charging an hourly or flat fee, the lawyer receives a percentage of your settlement or court award. If you lose, you don’t owe any attorney’s fees.
Essentially, an attorney’s fee is contingent on a successful outcome in your case.
This fee structure is common in personal injury cases, including:
Contingency fees ensure anyone can access quality legal representation regardless of financial situation.
Your first meeting with a personal injury lawyer is usually free. During this consultation, asking questions about your case and what to expect is important. The attorney will evaluate your case and explain their contingency fee agreement.
If you decide to hire a lawyer, you’ll sign a written agreement. This document outlines the percentage the attorney will take if you win.
How Much Is A Typical Contingency Fee?
In Florida, contingency fees usually range from 33% to 40% of the recovery. The percentage often depends on the stage at which the case is resolved and how much is recovered.
The Florida Rules of Professional Conduct limit fees in personal injury cases:
- 33-1/3% on up to $1 million if your case is settled early
- 40% on up to $1 million if you settle or win the case after a demand to appoint arbitrators or file an answer
- Up to 30% on an additional recovery between $1 and $2 million and up to 20% on an additional recovery above $2 million (reduced if the defendant admits liability but disagrees on damages)
- An additional 5% if the case is appealed or your lawyer needs to seek post-judgment relief or file an action to collect on a judgment
Unique rules apply to contingency fees in medical malpractice cases. The Florida Constitution gives clients the right to no less than 70% of the first $250,000 in damages and 90% of additional damages, excluding costs. Attorneys may charge a higher fee in these cases with the client’s consent, which must be signed and notarized.
According to the Rules of Professional Conduct, lawyers are prohibited from charging illegal or clearly excessive fees. Many factors can be considered to determine a reasonable fee, including the time and work required, the complexity of the case, customary fees in the area, and the lawyer’s reputation and experience.
The contingency fee contract with your lawyer must:
- Be in writing
- Be signed by the client and any attorney who will be paid under the terms
- State the percentage of any recovery the lawyer will keep
- State any other expenses that shall be deducted from your recovery
- State how other costs will be deducted
The Florida Bar has a consumer pamphlet on attorneys’ fees to help you understand your rights.
What Costs Are Not Included In The Contingency Fee?
While the contingency fee covers the attorney’s payment, other expenses may apply, such as:
- Court filing fees
- Expert witness costs
- Deposition and discovery expenses
- Investigative expenses
- Medical record retrieval fees
- Fees for certified documents
- Mailing and administrative charges
The lawyer typically pays upfront costs, such as court filing fees and expert witness charges. These expenses are reimbursed from your settlement or award. Make sure to ask how expenses will be handled and whether you’ll owe anything if you lose the case.
What Are The Benefits Of Contingency Fees?
There are several benefits to a contingency fee arrangement:
- No Upfront Costs: You don’t need to pay anything out of pocket to hire a lawyer.
- Accessible Representation: Contingency fees allow people of all financial backgrounds to afford quality legal help.
- Aligned Goals: Your lawyer has an incentive to secure the maximum compensation because their payment depends on your success.
- Reduced Financial Risk: If you lose, you won’t owe attorney’s fees.
This structure ensures that justice is available to everyone, not just those who can afford hourly legal rates.
How Are Attorneys’ Fees Paid?
When your case is resolved, the lawyer’s fee is deducted from your recovery amount. Here’s how it works:
- The settlement or award is sent to your lawyer and deposited in a special trust.
- Outstanding medical liens are paid out first.
- Court costs and other expenses are deducted next.
- The agreed-upon percentage is then subtracted from the remaining amount as the attorney’s fee.
- The remaining balance is paid to you.
This process ensures transparency and clarity in how funds are distributed. The insurance company is required by Florida law to cut a settlement check in a reasonable time, usually within 20 days. You will receive your settlement check once all liens are paid and expenses deducted.
If you have been injured in an accident in Tampa, Florida, contact Mincone Personal Injury Lawyers at (813) 800-0810 today for a free consultation.
