Hiring a lawyer can be a big expense for many people. Fortunately, when you hire a lawyer they often have payment structures that make paying for their services easier.
One of those payment structures is a contingency fee. Contingency fees allow the lawyer to receive a portion of the monetary amount that their client receives when they win or settle a lawsuit. This is the most common payment structure for Las Vegas personal injury attorneys.
Why Use Contingency Fees in Las Vegas, Nevada?
Contingency fees can make paying for legal services a lot more feasible for a client who is not wealthy. Legal services can be very expensive, but that does not mean that accident victims should settle for low-quality legal representation.
Contingency fees allow clients to receive high-quality legal representation and appropriate compensation for their injuries without worrying about how they will pay for legal expenses.
This type of fee structure is also good for lawyers because it incentivizes them to get the best settlement possible for their clients. Additionally, this payment structure can help avoid issues with the client not paying for the legal services.
Other methods of payment include hourly fees and retainers. A retainer is an upfront payment determined by the lawyer’s hourly rate for a certain number of hours of work.
How Do Contingency Fees Work?
The Model Rules of Professional Conduct dictate how a lawyer should act when working with clients, in a courtroom, and while soliciting clients. These rules defined how contingency agreements should be set up.
The rules require that contingency fee agreements be in writing and signed by the client. Lawyers must notify the client of any expenses they will be responsible for and how the fee will be determined.
These rules help create a clear understanding of how the payment method will work for both the attorney and the client.
There are a number of costs associated with building a case that are usually included in these fee arrangements. They may include:
- Expert analysis and consultation
- Court fees
- Costs for certified records
These costs are deducted from the settlement or award, allowing the client to walk away without out-of-pocket expenses.
Generally, contingency fees are deducted from the award or settlement that the client receives. The percentage a lawyer charges in a contingency fee generally ranges from 30% to 40%.
How Legal Fees and Other Costs Are Paid Out From Your Recovery
If your case ends with a settlement agreement or a jury award, your attorney’s contingency fee will be deducted from the total recovery. In most cases, your lawyer receives your settlement check. Any other liens, fees, and expenses are deducted before you receive your funds.
Liens are typically deducted first from your settlement. Common personal injury liens include:
- Medical liens. Many medical providers place liens on personal injury settlements in exchange for providing expensive care like surgery. Your health insurance company may also have a lien to get reimbursement for the treatment they cover.
- Medicare and Medicaid liens. Medicaid or Medicare may seek reimbursement for the cost of medical care they cover.
- Child support liens. If you have outstanding child support payments, a lien may be placed on your settlement to ensure it’s paid.
- Workers’ compensation liens. If your injury involved a workplace accident, the workers’ compensation provider will likely place a lien to recover what they paid for the medical care you received.
Next, other expenses like court filing fees, document fees, and expert witness fees may be deducted from your settlement. However, not every attorney treats these costs of the case the same. Be sure your contingency agreement specifies the order in which costs and fees will be deducted.
Average Personal Injury Contingency Fees
A common contingency fee for a personal injury case is 33.33%. However, the percentage may depend on the attorney’s experience, type of case, and overall complexity.
Some lawyers use a sliding scale: a lower fee applies if a pre-lawsuit settlement is reached, a higher fee applies if a lawsuit is filed, and the highest fee applies if the case goes to trial. This type of arrangement reflects the increased costs, effort, and risk for the attorney. If a sliding scale is used, the contingency fee may range from 25% to 45%.
In Nevada, contingency fee agreements must be in writing and signed. The agreement must include:
- How the fee is determined
- The percentage of the recovery
- Whether expenses are deducted before or after the lawyer’s fee
- Whether the client is liable for expenses, regardless of the outcome of the case
The Nevada State Bar has a sample contingency fee agreement you can review.
What Does a Contingency Fee Cover?
Your contingency fee agreement should specifically outline what fees are and are not covered, and whether you will be responsible for any expenses even if your case is not successful.
Contingency fees do not necessarily cover all costs. Common expenses in a personal injury case include:
- Filing fees for a lawsuit
- Deposition costs
- Medical records fees charged by medical providers
- Expert witness fees
In most cases, your lawyer will cover these costs as they are incurred, but they must be reimbursed when your case is concluded. Check with your attorney to be sure.
What Is a Typical Contingency Fee?
The amount of a contingency fee varies depending on the case. There are a few factors that determine the amount of the contingency fee.
These factors include:
- Time and Effort: Some cases take more time and effort than others. An experienced personal injury lawyer can estimate how much time they will need to put into a case and, from there, determine the appropriate fee.
- The Risk Involved: While some claims have substantial evidence and strong documentation to back them up, others do not. Cases with uncertain outcomes may require a higher contingency fee.
- Settlement and Trial: Experienced lawyers can estimate whether the case will go to trial or be settled. A settlement is a much faster, lower-cost process, so the contingency fee may be lower if the chances of the parties agreeing to settle are high.
Contingency fees vary depending on the case, but overall, it is best to hire a lawyer who is experienced in the area of law and the type of case that you are dealing with.
Get Help From an Experienced Las Vegas Personal Injury Lawyer
Contingency fees are one of the best ways for clients to get the legal help they need without upfront, out-of-pocket legal expenses. An experienced Las Vegas personal injury lawyer can help you win your personal injury case without high upfront hourly fees. Contact De Castroverde Law Group at (702) 222-9999 to schedule a free consultation to discuss your case.
