In personal injury cases, most attorneys work on a “contingent fee” basis. In this scenario, you agree to
pay your attorney a percentage of your award if you are victorious instead of an hourly rate. There are no
up-front fees required to hire an attorney.
If your attorney wins your case, the contingent fee is typically in the range of 33–40 percent of the amount
recovered. If you lose your case, your attorney does not get paid—no award, no contingent fee. The
contingent fee frequently does not include charges for court lings, deposing witnesses, making copies of
medical records, and so forth. Those costs will come out of the recovery amount if you are successful. If
you lose the case, you may be responsible for those charges.
There are differences in contingent-fee arrangements from attorney to attorney. One big one is whether
your attorney deducts the costs and expenses from your recovery amount before or after he/she is paid
the contingent-fee percentage. This point is often negotiable.
Some contingent-fee agreements will operate under a graduated percentage contract. Legal work that’s
more involved (e.g., ling a lawsuit and prepping for trial) will garner a higher contingent-fee percentage.
The contingent-fee percentage may be lower if a case is settled prior to ling a lawsuit.
Contingent-fee arrangements eliminate up-front charges for the client; there are no mounting legal bills
as a case winds through the legal system; lower-income people are afforded greater access to the legal
system to pursue compensation for injury; and attorneys are highly motivated to win their cases…they
don’t get paid otherwise.
Newsletter
If you’ve been injured in an auto accident due to the negligence
of another driver, and your injuries prevent you from
working or reduce your ability to work, you have a right
to recover lost wages. Generally, to recover for lost wages, one of two things must occur: An
injury must be the direct result of the accident, or a pre-existing injury was made worse by the
accident.
To prove lost wages, produce the pay stub from your most recent paycheck prior to your
injury. Tips and non-salary benefits should be included as well. If you are self-employed, you
will need to submit proof of what you would have earned. Keeping detailed, organized records
pays off in these circumstances.
If a motor vehicle accident results in a long-lasting or permanent injury—including chronic pain
or fatigue—that will affect your ability to earn a paycheck, you may have grounds to recover for
“lost earning capacity.” In some situations, you can claim this even if you can work—for instance, if
the injury reroutes you to a lower-paying job.
Proving lost earning capacity can be tricky, as it involves some speculation about the future. At trial, a
financial expert will likely be necessary to crunch the numbers. Your character traits, work habits, education,
and intention to change careers may also be considered. After that, it’s in the hands of a jury, which has
the leeway to determine the final amount you are awarded.
If you have been injured in an auto accident, contact an auto accident attorney to protect your rights.
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