If you have been injured in a car accident where you were not at fault,
you might consider hiring a lawyer. Personal injury attorneys work to
make sure their clients get fair and reasonable insurance settlements.
Lawyer’s fees can be confusing. Understanding a few of the fees that
you might face will help you budget and also avoid confusion when it
comes time to make your payments.
Types of Fees
To avoid any surprises when paying your lawyer’s fees, find out how
they work as soon as possible. The American Bar Association recommends
that personal injury lawyers explain their fees in writing as soon as
possible after taking on your case. In some states, the bar requires
attorneys to do so before taking your case.
Three common types of personal injury attorney fees are the following.
- Contingency.
- Retainer.
- Hourly.
Contingency
The majority of personal injury attorneys accept cases on a contingency fee basis.
With a contingency fee plan, if you win your case, your
attorney takes a percentage of the settlement amount from the auto
insurance company.
This amount varies by state and individual attorney, but it often
ranges from 33% to 40% of the settlement amount. The contingency fee
should be consistent with the amount of work that the personal injury
lawyer needs to put into the case.
Although you only pay the contingency fee if your attorney wins the case, you are still liable for additional fees. (See “Typical Expenses in a Personal Injury Case” below.)
During your initial consultation with a personal injury attorney, be
sure to inquire about all related fees and potential expenses.
Retainer
A retainer agreement is the written financial agreement between client and attorney that lays out the fee required to retain the services of the attorney. This fee is paid upfront.
In addition to contingency, court, and case filing fees, inquire about retainer fees during your initial consultation.
The details of retainer agreements vary, but an agreement will typically contain the following information:
- Attorney-provided services.
- Corresponding client actions.
- Explanation of fees and expenses.
- Payment schedule.
- Process of dissolving the professional relationship if it is inharmonious.
Hourly
Hourly fees can quickly add up. Before you agree to pay an attorney on an hourly basis, ask for an estimate of the total time the attorney expects to spend on the case.
NOTE: A personal injury lawyer who
works quickly and charges a higher hourly rate may end up charging you
less overall than a lawyer who charges less per hour but takes longer.
Typical Expenses in a Personal Injury Case
There are many expenses that come up as your lawsuit proceeds. You’ll
pay the fees as they arise, or the lawyer will take the fees out of your
share of the settlement.
These are some of the fees that can occur during the suit.
- Expert witness fees.
- Postage.
- Filing fees.
- The cost to hire investigators.
- Obtaining and preparing medical records and police reports.
- Exhibits for trials.
Tips for Negotiating Personal Injury Fees
Hiring a personal injury lawyer can be expensive, but you can try to
lower the costs. See the following strategies for negotiating lower
fees.
- Compile your own documents and ask the lawyer to
lower the contingency percent. He may be willing to lower your fees if a
substantial amount of work is completed before he starts.
- Ask to pay a lower contingency fee if your case is settled out of court, since your attorney needs to do far less work for a settlement than when preparing for a trial.
- Ask to pay a lower contingency fee if your settlement is below a certain amount of money, such as $10,000 or $20,000.
- Ask the lawyer to work hourly until you reach a certain limit and then switch to a contingency plan.
- Pay on an hourly basis to start and switch to a contingency plan if the offer for compensation from your car insurance company is too low.
Locating a good lawyer who can efficiently help with your particular
problem may not be easy. Don't expect to locate a good lawyer by simply
looking in the phone book or reading an advertisement. There's not
enough information in these sources to help you make a valid judgment.
Personal Referrals
A better approach is to talk to people in your community who have
experienced the same problem you face -- for example, if you have a
claim of sexual harassment, talk to a women's group. Ask them who their
lawyers were and what they think of them. If you talk to half a dozen
people who have had a similar legal problem, chances are you'll come
away with several good leads.
But don't make a decision about a lawyer solely on the basis of
someone else's recommendation. Different people will have different
responses to a lawyer's style and personality; don't make up your mind
about hiring a lawyer until you've met the lawyer, discussed your case,
and decided that you feel comfortable working with him or her.
Also, it may be hard to find lawyer through a personal referral with
the expertise you need (for instance, if your friend had a great divorce
lawyer, but you need incorporation advice, the referral may not do you
much good).
Online Services
Many sites, including Nolo.com, offer a way to connect with local
lawyers based on your location and the type of legal case you have. You
answer a few questions about your case and your contact information,
then the right type of lawyers contact you directly.
Talk to a local lawyer.
Nolo's Lawyer Directory
Nolo offers a unique lawyer directory
that provides a comprehensive profile for each attorney with
information that will help you select the right attorney. The profiles
tell you about the lawyer's experience, education, and fees, and perhaps
most importantly, the lawyer's general philosophy of practicing law.
Nolo has confirmed that every listed attorney has a valid license and is
in good standing with their bar association.
Business Referrals
Businesses who provide services to key players in the legal area you
are interested in may also be able to help you identify lawyers you
should consider. For example, if you are interested in small business
law, speak to your banker, accountant, insurance agent, and real estate
broker. These people come into frequent contact with lawyers who
represent business clients and are in a position to make informed
judgments.
Lawyer Referral Services
Lawyer referral services are another source of information. There is a
wide variation in the quality of lawyer referral services, however,
even though they are required to be approved by the state bar
association. Some lawyer referral services carefully screen attorneys
and list only those attorneys with particular qualifications and a
certain amount of past experience, while other services will list any
attorney in good standing with the state bar who maintains liability
insurance. Before you choose a lawyer referral service, ask what its
qualifications are for including an attorney and how carefully lawyers
are screened.
What you may not get from any lawyer referral service, however, is
insight into the lawyer's philosophy -- for instance, whether the lawyer
is willing to spend a few hours to be your legal coach or how aggressive the lawyer's personality is.
Other Sources
Here are a few other sources you can turn to for possible candidates in your search for a lawyer:
- The director of your state or local chamber of commerce may be a good source of business lawyers.
- The director of a nonprofit group interested in the subject matter
that underlies your lawsuit is sure to know lawyers who work in that
area. For example, if your dispute involves trying to stop a major new
subdivision, it would make sense to consult an environmental group
committed to fighting urban sprawl.
- A law librarian can help identify authors in your state who have
written books or articles on a particular subject -- for example,
construction law.
- A women's or men's support group will probably have a list of well-regarded family and divorce lawyers.
Consider a Specialist
Most lawyers specialize in certain areas, and even a so-called
"general practitioner" may not know that much about the particular area
of your concern. For example, of the almost one million lawyers in
America today, probably fewer than 50,000 possess sufficient training
and experience in small business law to be of real help to an aspiring
entrepreneur.
It can pay to work with a lawyer who already knows the field, such as
employment discrimination, zoning laws, software design issues, or
restaurant licensing. That way you can take advantage of the fact that
the lawyer is already far up the learning curve. Sometimes specialists
charge a little more, but if their specialized information is truly
valuable, it can be money well spent.
Interview the Prospective Lawyers
When you get the names of several good prospects, the next step is to
talk to each personally. If you outline your needs in advance, many
lawyers will be willing to meet to you for a half-hour or so at no
charge so that you can size them up and make an informed decision.
Personality
Pay particular attention to the personal chemistry between you and
your lawyer. No matter how experienced and well-recommended a lawyer is,
if you feel uncomfortable with that person during your first meeting or
two, you may never achieve an ideal lawyer-client relationship. Trust
your instincts and seek a lawyer whose personality is compatible with
your own. Look also for experience,
personal rapport, and accessibility.
Communication and Promptness
Ask all prospective lawyers how you will be able to contact them and
how long it will take them to return your communications. And don't
assume that because the lawyer seems friendly and easy to talk to that
it's okay to overlook this step.
Unfortunately, the complaint logs of all lawyer regulatory groups
indicate that many lawyers are terrible communicators. If every time you
have a problem there's a delay of several days before you can talk to
your lawyer on the phone or get an appointment, you'll lose precious
time, not to mention sleep.
Almost nothing is more aggravating to a client than to leave a legal
project in a lawyer's hands and then have weeks or even months go by
without anything happening. You want a lawyer who will work hard on your
behalf and follow through promptly on all assignments.
Willingness to Work With You
When you have a legal problem, you need legal information. Lawyers,
of course, are prime sources of this information, but if you bought all
the needed information at their rates -- $150 to $450 an hour -- you'd
quickly empty your bank account. Fortunately, many lawyers will work
with you to help you acquire a good working knowledge of the legal
principles and procedures you need to deal with your problem at least
partly on your own.
If you are hoping to represent yourself and use a lawyer only for
advice, make sure the lawyer is open to that type of set-up. Likewise,
if you're going into business and will draft your own bylaws or business
agreements, ask the lawyer if she's open to reviewing your drafts and
making comments.
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