With a contingency fee agreement, you get legal representation without a high upfront cost that can otherwise be a hurdle to hiring an attorney. At its most basic, a contingency fee arrangement means the lawyer represents you in exchange for a specific percentage of the amount you recover. The attorney only receives their fee if your case is successful.
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.
Contact Our Las Vegas Personal Injury Law Firm For Help Today
If you’ve been injured in Las Vegas, NV, or the surrounding Nevada area and need legal help, contact our Las Vegas personal injury attorneys at De Castroverde Accident & Injury Lawyers to schedule a free case evaluation today.
We have three locations in Nevada for your convenience, including Las Vegas, Summerlin, and Henderson. We’re proud to serve Clark County and the surrounding areas.
De Castroverde Accident & Injury Lawyers – Las Vegas Office
1149 S Maryland Pkwy, Las Vegas, NV 89104
(702) 222-9999
De Castroverde Accident & Injury Lawyers – Summerlin Office
410 S Rampart Blvd, Ste 480 Las Vegas, NV 89145
(702) 964-1806
De Castroverde Accident & Injury Lawyers – Henderson Office
9555 S Eastern Ave, Las Vegas, NV 89123
(702) 800-3455
About the Author
Alex De Castroverde earned his law degree from Nova Southeastern University Shepard Broad College of Law and is licensed to practice in Nevada. He is a dedicated trial lawyer who assists clients across Las Vegas in a wide range of legal matters, with a focus on personal injury. Alex has successfully represented clients in cases involving car accidents, catastrophic injuries, truck accidents, motorcycle accidents and more. Click here to learn more about the outstanding case results Alex has achieved for his clients.
