In most cases, personal injury lawyers in Huntsville operate on a contingency fee basis meaning that are no up-front payments of out-of-pocket expenses paid by the client. Consequently, the lawyer handling your personal injury claim only gets paid if they are able to win your case and secure the compensation you are suing for. Therefore, it is important for the client to understand how a contingency fee arrangement works.
How do Lawyers charge Legal Fees?
Arrangements for the payment of legal fees differ based on the type of lawyer you are hiring to handle your case. Here are some examples of these fee arrangements:
• Retainer fee – a fee that is paid up front and serves as a down payment on the lawyer’s legal services
• Hourly fees – these fees or hourly rates are determined by numerous factors including the amount of money involved, complexity of the case, legal issues involved, level of legal skill required, and seriousness of the matter.
• Disbursements – many lawyers will charge for their incurred expenses when litigating a case; disbursements may include the charge for copies of the accident report, costs of acquiring certain documents or medical reports, long distance phone expense, etc.
• Contingency fees – in a contingency fee arrangement, the amount that the client pays their lawyer is determined by the outcome of the case they are litigating; for instance, in personal injury cases, you would pay your lawyer a percentage of the compensation you received for your losses in an accident.
It is the last type of fee arrangement that most personal injury lawyers operate by in both Canada and the USA. That is why always seek assistance of the injury lawyers when you are involved in an accident.
Which Fee Arrangement is better for the Client?
For clients who cannot afford to pay a lawyer an hourly rate or retainer fee, contingency fees are ideal as no up-front costs or out-of-pocket fees are required in certain types of lawsuits. In most cases, individuals are not financially able to pay legal fees. However, they are entitled to compensation for the injuries that were caused by another person’s careless or negligent behavior.
Personal injury lawyers who operate on a contingency fee basis can start working on your case immediately since there are no up-front fees to be paid. Another benefit of these types of fee arrangements is that no legal fees will be charged if the client is unsuccessful in their case. In other words, the client doesn’t have to stress and worry about any type of financial burden if they lose their case. That is why it always helps to ensure that