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When you’ve been injured due to someone else’s negligence, seeking legal representation can be daunting, especially when considering the potential costs. How is someone expected to pay attorney fees while they can work due to a car accident or other personal injury?
However, nearly all personal injury lawyers work on contingency fee arrangements, also known as “no win, no fee” contracts, which can make legal services more accessible to those who need them most.
What are Contingency Fees?
A contingency fee is a payment arrangement where the lawyer’s fees depend on the successful outcome of the case. The lawyer only receives payment if they secure a settlement or win a verdict in favor of their client. If the case is unsuccessful, the client does not owe any legal fees to the lawyer.
Contingency fees are typically calculated as a percentage of the total amount recovered in the case.
How much will my lawyer take as a contingency fee?
The percentage of the recovery that your lawyer will take as a fee can vary but is typically between 33% and 40%. In Oklahoma, the maximum contingency fee percentage allowed is 50% of the net recovery, as per Title 5, Chapter 1, Appendix 1, Rule 1.5 of the Oklahoma Rules of Professional Conduct. However, the exact percentage may vary depending on the case’s complexity, the stage at which the case is resolved, and the individual lawyer or law firm’s policies.
Are contingency fees negotiable?
While some lawyers may have “standard” contingency fee percentages, others may be willing to negotiate the fee based on the specifics of your case. It’s always worth discussing the fee structure with your lawyer before entering into an agreement.
Advantages of Contingency Fees for Clients
Contingency fee arrangements offer several benefits for personal injury clients:
- Access to legal representation: Individuals who may not have the financial means to pay for legal services upfront can still obtain representation through a contingency fee agreement.
- Alignment of interests: Since the lawyer’s fees are tied to the success of the case, they are motivated to work diligently and efficiently to achieve the best possible outcome for their client.
- Risk-sharing: The risk of pursuing the case is shared between the lawyer and the client. If the case is unsuccessful, the client does not owe any legal fees.
What happens if I lose my case?
If you lose your case, you do not owe any legal fees to your lawyer under a contingency fee agreement.
Costs and Expenses in Contingency Fee Cases
While contingency fees cover the lawyer’s services, clients may still be responsible for certain costs and expenses related to the case, such as court filing fees, expert witness fees, deposition costs, and other litigation expenses.
The lawyer should discuss these potential costs with the client upfront and outline how they will be handled in the fee agreement. In most cases, the lawyer will advance these costs and recover them from the settlement or verdict. In others, the client may be responsible for paying these costs as they arise.
Contingency Fee Agreements in Oklahoma
When entering into a contingency fee arrangement, the lawyer and client will sign a written fee agreement. This agreement should clearly outline the terms of the representation, including the percentage of the contingency fee, any costs and expenses the client may be responsible for, and the scope of the lawyer’s services.
In Oklahoma, contingency fee agreements must be in writing and signed by both the lawyer and the client, as per Title 5, Chapter 1, Appendix 1, Rule 1.5(c) of the Oklahoma Rules of Professional Conduct.
Considerations Before Entering a Contingency Fee Agreement
Before entering into a contingency fee agreement, clients should consider the following:
- Percentage of the recovery: Understand the percentage of the recovery that the lawyer will take as their fee and whether there are any variations based on the stage at which the case is resolved.
- Expenses: Clarify who will be responsible for covering expenses related to the case and how they will be handled.
- Settlement authority: Discuss the process for approving settlements and ensure that you have the final say in accepting or rejecting a settlement offer.
- Termination of representation: Understand the terms under which either party can terminate the representation and any obligations that may arise in such a situation.
What if I decide to change lawyers during my case?
If you decide to change lawyers during your case, you may still owe a portion of the contingency fee to your original lawyer, depending on the work they have already completed and the terms of your agreement.