How do Contingency Fees Work?
In this post we answer the question "how do contingency fees work?". Many people know the claim, “no fee unless we collect” associated with personal injury lawyers. Some people assume that this promise is too good to be true and there are actually hidden fees involved. But the truth is, there are no hidden fees or any financial risk to the clients if a case goes south. This means that everyone has access to high quality legal representation regardless of their financial means.
Contingency fees are taken out of a client’s final settlement or verdict. Generally, there are between 33% - 40% of the amount. The attorney fronts all the costs for a particular lawsuit, as well, including paying for medical records and bills, paying for expert witness, paying the filing fee, etc. These fees will also come out any settlement or verdict. You can view more information on our contingency fee structure here.
Why Do Lawyers Work On Contingency?
Personal injury cases are handled through contingency fees in order to keep frivolous lawsuits from clogging up the courts. If attorneys took an hourly fee for their service, they may be inclined to pursue cases they knew had no chance of being successful just to collect a fee. By making the attorney’s fees contingent on the success of a particular case, the court can be sure that attorneys are only bringing forward cases they feel have a chance at a successful outcome.
Some people still choose to purse a case on their own, thinking they can negotiate with the insurance company on their own and save themselves the fees. These people often don't know how contingency fees work or how beneficial contingency fee structures can be. Ideally a personal injury lawyer working on contingency results in a win-win situation for the attorney and client. Our firm seeks to represent clients in situations where a client walks away with more money than they could have obtained on their own. The best situations are when you don't have to deal with the stress of fighting insurance companies AND you walk away with more money in your pocket. Potential fees should not deter people from seeking representation.
We Can Help
At Johnson Law, we do not take any fees unless we collect for our clients. We use our experience and resources to maximize the amount of your settlement or verdict, ensuring that you are made as whole as possible after an accident. If you have been injured in Portland or anywhere in Oregon, contact Johnson Law today for a free consultation with a personal injury attorney.