If you have been injured in an accident, your finances may already be stretched thin. You probably have medical bills starting to pile up, and you might be missing time from work because of your injuries. The last thing you want to think about is finding the money to hire a personal injury lawyer.
Thankfully, hiring a Chicago personal injury lawyer does not have to cost you any money up front. Most personal injury lawyers, including car accident attorneys, medical malpractice lawyers, and wrongful death attorneys, work on a contingency fee basis. This means that the lawyer takes their fee as a portion of any recovery received by the client.
Contingency fee amounts can vary widely, depending on several factors. If you need to hire a personal injury lawyer, dive into all the details below to learn how much it may cost you.
What is a Contingency Fee?
A contingency fee is an arrangement for payment of legal services where the lawyer takes a portion of any money awarded to the client instead of requiring an upfront payment. If the lawyer does not win the case, they do not receive a fee. Contingency fees are common in personal injury cases, although Illinois law does set some specific rules about the use of contingency fees.
The Illinois Rules of Professional Conduct require contingency fee agreements to be in writing and signed by the client. The agreement must also state how the fee is to be calculated as well as describe any other expenses that may be deducted from the recovery. These rules also prohibit the use of contingency fees in criminal cases and most domestic relations cases.
Average Contingency Fee Amounts in Personal Injury Cases
There is no cap on the amount of the contingency fee that may be charged in Illinois, although the law does prohibit unreasonable fees. On average, contingency fees range from 25% to 50% of the total amount of the recovery. Some factors that influence the amount of the fee include:
- Location
- Lawyer’s experience level
- Lawyer’s track record
- Whether the case settles or goes to trial
More experienced attorneys will usually charge higher fees than those with less experience. Similarly, attorneys who have a track record of success typically demand a higher fee than those who do not have a proven record of winning.
One of the biggest factors that influences the amount of the fee is the time at which the matter is resolved. For instance, if a case is settled without filing a lawsuit, the fee is likely to be on the lower end. However, if a case goes all the way to trial, the fee will be on the upper end of the scale.
For example, suppose an attorney charges a contingency fee of 30% if the case settles before trial. However, that fee increases to 45% if the case goes to trial. The lawyer’s fee on a $10,000 settlement would be $3,000. If the client received a $10,000 jury award, the lawyer’s fee would be $4,500.
Why Do Personal Injury Lawyers Use Contingency Fees?
Most personal injury lawyers use contingency fees because they know their clients may be experiencing financial hardships. Most personal injury clients do not have the money to pay a lawyer an upfront fee. By using a contingency fee, the lawyer is able to help the client win their case and get financial compensation for their injuries.
There are several benefits to using a contingency fee in these cases, including:
- No additional financial hardship on the client
- The attorney has a vested interest in the outcome – the more money they get the client, the more money the lawyer will receive
- Law firms have the financial resources to prepare these cases and see them through to the finish
- No client will be left without representation simply because they could not afford a lawyer
Not only does the client benefit from a contingency fee arrangement, but these can be good for attorneys as well. It allows an attorney to represent a client and earn a fee when that client might otherwise not be able to afford a lawyer.
Other Personal Injury Case-Related Expenses
The attorney’s fee is not the only cost that you should consider when thinking about the total cost to hire a lawyer. There are also other case-related expenses that will need to be paid. Usually, the client is responsible for paying these expenses from the proceeds of any recovery they receive. Examples of these expenses are:
- Medical record requests
- Filing fees
- Court costs
- Cost of hiring experts to help prove your case
- Administrative costs
Make sure that you fully understand both the calculation of the attorney’s fee as well as any other costs you may be responsible for. These costs should be outlined in the contingency fee agreement, although the specific amounts may not be known at the time the agreement is signed. The larger and more complex the case is, the higher these expenses are likely to be.
Other Types of Fee Agreements
In addition to contingency fees, there are a couple of other fee arrangements that attorneys frequently use.
Flat Fee Agreements
Flat fees are used when the client pays the lawyer a specified amount to perform specific legal representation. The fee is the same regardless of how much time the lawyer spends on the matter. These fees are common when the lawyer has a good idea of how much work will be required and no surprises are likely to arise.
Flat fees are often used in uncontested divorces, wills & trusts, and other types of transactional matters. These types of agreements keep things simple because the client knows exactly how much the legal work will cost.
Hourly Billing
Hourly billing is a common practice for matters where the lawyer is unsure how much time the case may require. Hourly billing is common in contested divorces, criminal cases, and corporate law. When using hourly billing, the lawyer will usually require the payment of an upfront retainer.
As the lawyer works on the case, their fee is subtracted from the retainer already paid by the client. Lawyers who use hourly billing typically charge in 10 to 15 minute increments. All the time spent on the case is tracked, and all the accrued charges are usually subtracted from the retainer on a monthly basis.
Finding The Right Personal Injury Lawyer
Cost is only one of the factors you should consider when hiring a personal injury lawyer. Make sure you assess other important criteria as well, especially the attorney’s experience handling cases similar to yours.
If you have been injured in an accident, contact Attorneys of Chicago Personal Injury Lawyers today. We never collect a fee unless we win your case, and we have the experience you need on your side to help you get fully compensated for your injuries. We will fully explain our fee arrangement so that you know exactly what to expect. Give us a call to schedule a free consultation with a Chicago personal injury lawyer at (872) 324-4375.
