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Many people hesitate to call a lawyer after an accident because they assume they can’t afford one. They’re already facing medical bills and missed paychecks, and an hourly legal bill feels impossible. Contingency fees exist to solve that problem.
Under a contingency fee agreement, you pay no attorney fees upfront. Your lawyer is paid only if they recover money for you. Chattahoochee Injury Law handles every personal injury case this way.
A contingency fee is a percentage of the money recovered in your case, whether through a settlement or a verdict. If there is no recovery, there is no attorney fee.
This arrangement does two things. It gives injured people access to legal help regardless of their finances, and it aligns your lawyer’s interests with yours. The more your case is worth, the better both of you do.
The percentage is agreed upon at the start of the case. In personal injury cases, it is commonly around one-third of the recovery. Many agreements use a higher percentage if the case goes to litigation or trial, because that stage requires far more time and resources.
Whatever the numbers are, they should be spelled out in plain language before you sign. A good lawyer will walk you through each stage and answer questions without pressure.
Under Rule 1.5 of the Georgia Rules of Professional Conduct, any fee must be reasonable, and a contingency fee agreement must be in writing and signed. The agreement has to explain how the fee will be calculated, including the percentages that apply if the case settles, goes to trial, or is appealed, and how case expenses will be handled.
When the case ends, Georgia also requires a written closing statement showing the outcome, how the money was divided, and how the fee was calculated. You should never have to guess where your settlement went.
Attorney fees and case costs are not the same thing. Case costs are the out-of-pocket expenses of pursuing a claim, such as:
In many injury cases, the firm advances these costs and is reimbursed from the recovery. Costs can be significant in complex cases. A truck accident lawyer, for example, may need to download electronic logging data, inspect the truck, and reconstruct the crash. Claims against large property owners, such as negligent security claims, can require similar investment.
Your agreement should say whether the fee is calculated before or after case costs are subtracted. Here is how that plays out on a $90,000 settlement with $6,000 in costs and a one-third fee:
Fee calculated before costs
Fee calculated after costs
Settlement
$90,000
$90,000
Case costs
$6,000
$6,000
Attorney fee
$30,000
$28,000
Amount before medical bills
$54,000
$56,000
Medical bills, health insurance reimbursement claims, and hospital liens are usually paid from the remaining amount. Your lawyer should explain those obligations up front and work to reduce them where possible, since every dollar saved there goes to you.
Insurance companies have adjusters and defense lawyers on salary. A contingency fee puts you on more equal footing without a financial risk you can’t afford.
It matters most when the stakes are highest. Families dealing with a fatal crash shouldn’t have to worry about legal bills while handling wrongful death claims. Someone who missed months of work after a collision is often the person who most needs a car accident lawyer and is least able to pay one by the hour.
Our guide on when to hire a personal injury lawyer covers how to decide whether you need one.
Before agreeing to representation, ask:
Clear answers to these questions are a good sign. Our guides to dealing with insurance companies and how long a personal injury case takes can help you understand what comes next.
Founding attorney Benjamin Clary has spent 13 years representing injured Georgians on a contingency fee basis. He holds a Martindale-Hubbell AV Preeminent rating and explains every fee agreement in plain language before any work begins.
We offer free consultations to clients across coastal Georgia, including those with injury claims in Hinesville. If cost is the reason you haven’t called, a personal injury lawyer at our firm can review your case at no charge.
Contact us today to schedule your free consultation.
