Claims and Contingency Fees

For many people who have suffered an injury in an accident due to someone else’s negligence, there is often one fear which makes them reluctant to hire an attorney: the cost. When medical and other expenses are piling up after an accident, especially if your injuries have caused you to miss work, stress about money is indeed reasonable. However, attorneys have maintained a solution which benefits both them and their clients: when you hire an attorney for your case, he/she will not be paid until you are, and most personal injury attorneys accept payment in the form of a “contingency fee.”
A contingency fee is a particular percentage – often 33.3%, or one-third – of your eventual settlement or award for your claim, which will be paid to your attorney for his/her services. This occurs only when you receive compensation for your injuries, and your attorney is not paid at all unless this compensation is earned for you. Attorneys do take risks in a legitimate sense, as cases for which they are unsuccessful will provide them little to nothing in exchange for the time and resources they have invested.
Indeed, injury attorneys invest a great deal in their cases. Many cases require hiring “expert witnesses” (i.e. doctors who can attest to the severity of an injury), hiring court reporters to transcribe depositions, paying court costs, ordering medical records, conducting research, and so on. Many claimants are unable to afford such costs on their own without legal representation; no matter how solid your claim may be, particular pieces of evidence must be presented to earn compensation and your attorney will be invaluable in helping you do so.
While most personal injury claims are settled out of court and without trial, the threat of a trial by jury is an important factor when negotiating with the insurance company. Insurers are most likely to settle claims when they fear that a jury would award a claimant a larger sum of money than if his/her case went to trial.
Your terms of payment with your attorney will be set in a written contract called an “Agreement to Provide Legal Services.” Contingency fees are usually about one-third of your gross settlement, but this can vary, as percentages often begin to decrease for settlements larger than $750,000. When your case is resolved, either by settlement or jury verdict, you’ll receive a finalized check, meaning the amount is yours and all attorneys’ fees are already subtracted. This money can be used to pay your medical bills and other expenses and keep the remainder.
Numerous studies have shown that personal injury claimants who work with attorneys earn far more substantial compensation for their injuries than those who work alone. If you or a loved one has been injured in an accident, contact America’s Consumer Lawyer for a free consultation. We are a Chicago-based injury law firm representing individuals (and their families) who have suffered an injury in an accident. We will handle your case quickly and advise you every step of the way, and we will not hesitate to go to trial for you. Lastly, America’s Consumer Lawyer is not paid attorneys’ fees unless we win your case. Our no-fee promise is that simple. You have nothing to risk when you hire us – only the opportunity to seek justice.