When a person is injured in an accident, stress usually shoots through the roof. There is so much to deal with, starting with seeking medical care for any resulting injuries. But, with medical care comes medical bills and the potential for lost wages during recovery. The good news is that a personal injury claim may be an option for recovering damages caused by your accident, including medical bills, lost wages, pain and suffering, disability, and more. As personal injury attorneys, we understand that handling your own injury claim on top of everything else can seem impossible. And many worry about the cost.
Personal injury attorneys handle the legal and insurance aspects of an injury claim and typically do not require clients to pay fees upfront. Instead, they are generally compensated through a contingency fee. In this article, we answer: what is a contingency fee? And explain how this structure benefits people injured because of the actions of another.
Contingency Fee Definition
A contingency fee is a payment arrangement in which a personal injury attorney is only paid if the client receives compensation through a settlement or court award. Instead of paying the attorney upfront or by the hour, the client agrees to pay a percentage of the money recovered. The exact fee percentage, how expenses are handled, and what happens if the case is unsuccessful should be explained in the attorney’s fee agreement.
For example, if an attorney and client agree to a 33 percent contingency fee and the case settles for $90,000, the attorney’s fee would be $29,700. The client would receive the remaining $60,300 before any other agreed-upon case expenses or deductions.
Common case expenses include:
- Court filing fees to officially file your case
- Expert witness fees for medical or accident experts to testify
- Investigation costs such as hiring private investigators
- Fees to obtain official medical records and reports
- Deposition and transcript costs for recording witness statements
- Travel or postage expenses when needed for case-related communication or transportation
Are Contingency Fees Fair?
Even after a portion of the settlement is taken in contingency fees, injured people typically come out far ahead financially because experienced personal injury lawyers know how to build strong cases and negotiate with insurance companies to fight for the maximum compensation. Without legal help, many people accept lowball offers or make mistakes that reduce their payout. In many cases, the settlement an injury lawyer secures is five to 10 times higher than what the client could have achieved on their own – even after legal fees are deducted.
Why Do Personal Injury Lawyers Use Contingency Fees?
Personal injury attorneys use contingency fees to make legal help more accessible, especially for people who can’t afford to pay upfront. The contingency payment structure reduces financial risk for the client while giving them a chance to pursue compensation. This arrangement also motivates the lawyer to take on valid legal cases and to work hard for the maximum settlement since they only get paid if they win the case and their fee increases with a larger settlement.
What Are Contingency Fee Laws in Washington State?
In Washington State, contingency fee agreements in personal injury cases are governed by professional rules and statutes. While there isn’t a blanket percentage cap, Washington’s Rules of Professional Conduct (RPC 1.5) does not allow lawyers to charge or collect unreasonable fees.
In addition, contingency fee agreements must:
- Be clearly outlined in writing and signed by the client.
- Detail the fee structure, including percentages based on settlement, trial, or appeal, and explain which expenses – such as retaining experts and filing fees – are charged and how they’re deducted.
- Include a written accounting at the end showing how much was recovered and how fees and costs were calculated.
Before hiring a personal injury lawyer and signing an agreement, it’s important to understand what percentage of your settlement will be deducted if you win, and what other expenses might come out of your settlement. When you ask questions up front, you can avoid surprises and feel more confident moving forward with your claim.
Seek the Help of a Personal Injury Lawyer
If you or a loved one was injured because of the negligence of another, contact a personal injury lawyer to discuss your legal rights. Let an experienced accident attorney fight for the full compensation that you deserve. It is not uncommon to receive a settlement from the insurance company that is five to ten times larger with the help of a lawyer. Call the personal injury lawyers at Tario & Associates, P.S. in Bellingham, WA today for a FREE consultation! Since 1979, our personal injury law firm, Tario & Associates, P.S., has been dedicated to fighting for the rights of people injured throughout Washington State, with local offices in Bellingham and Mount Vernon to serve residents of Whatcom, Skagit, Island, and Snohomish counties. You will pay nothing up front and no attorney fees at all unless we recover damages for you!
