Nearly all car accident lawyers in Oklahoma City work on a contingency fee basis. This means you pay no upfront costs or hourly fees to hire the attorney. The attorney only gets paid if they win money for you through a settlement or court judgment, and their fee is a percentage of the money they recover for you. However, this percentage is taken off the top of the settlement to pay the attorney.
In Oklahoma, standard contingency fees in car accident cases range from 33% to 40% of the gross settlement or judgment obtained. The exact percentage depends on the complexity of your case, the amount of work and litigation required, the experience and reputation of the attorney, and whether your case settles or goes to trial.
In addition to the contingency fee, other costs are associated with pursuing a car accident injury claim, such as obtaining police reports and medical records, court filing fees, deposition and court reporter fees, expert witness fees, and postage and copying costs. Typically, your attorney will advance these costs as they arise and be reimbursed out of the settlement or judgment at the end of the case. However, some attorneys may require you to pay costs as they are incurred, regardless of the outcome.
Average Car Accident Contingency Fee Percentages
In Oklahoma, the “standard contingency fees” in car accident cases start at 1/3 or 33.33%. However, this can range from 33% to 45% of the gross settlement or judgment obtained. The exact percentage depends on factors like:
- The complexity of your case
- The amount of work and litigation required
- The experience and reputation of the attorney
- Whether your case settles or goes to trial
- If you negotiate with the attorney before signing a contract
Most personal injury attorneys work on a “graduated” or “escalating” contingency fee. As the attorney spends more time and money on the case, the fee percentage goes up. This is the most common escalating fee:
- Pre-suit Settlement: 1/3 (or 33.33%)
- Settlement after filing a lawsuit: 40%
- Settlement after the Pre-Trial Conference: 45%
Why Have Contingency Fees?
The main advantage of contingency fees is that they allow people who can not afford to pay an attorney hourly access to the court system. Without contingency fees, the only people who could afford to file a lawsuit for a car accident would be wealthy individuals or ones willing to risk spending money on a case with the risk of losing. Summary of the fees:
- The client pays no upfront costs or hourly fees to hire an attorney
- The attorney only gets paid if they win money for the client through a settlement or court judgment
- The attorney’s fee is a percentage of the money they recover
Other Costs and Expenses to Consider
In addition to the contingency fee, there are “case costs” associated with pursuing a car accident injury claim, such as:
- Obtaining police reports and medical records
- Court filing fees
- Deposition and court reporter fees
- Expert witness fees
- Postage and copying costs
Typically, your attorney will advance these costs as they arise. Then, they will be reimbursed out of your share of the settlement or judgment at the end of the case. However, some attorneys may require you to pay costs as they are incurred, regardless of the outcome. Be sure to clarify how costs will be handled in your fee agreement.
How much does Hasbrook & Hasbrook Charge for a Car Accident Claim?
Have you noticed that law firms don’t actually say what they charge on their website? We’ve taken a different approach and want to be as transparent and honest as possible. This is the Hasbrook “standard” car accident fee:
- Pre-suit: 25%
- After Filing a Lawsuit: 1/3
- After Pre-Trial Conference: 40%
Note that I said “standard.” If your case is unusual, we may need to charge something different (more or less; it just depends on the facts of the case). A few examples: if you already had an attorney, if a lawsuit on the claim has already been filed, or if the insurance company has previously made a settlement offer.
Oklahoma Contingency Fee Ethics Rules
The Oklahoma Rules of Professional Conduct govern all attorneys’ fees in Oklahoma. These rules allow attorneys to enter into contingency fee arrangements with clients in specific types of cases.
Requirements for Contingency Fee Agreements
Under Rule 1.5(c) of the Oklahoma Rules of Professional Conduct, contingency fee agreements must be in writing and signed by the client. The agreement must state:
- The method of determining the fee, including the percentage that will accrue to the lawyer
- How the fee will be determined in the event of settlement, trial, or appeal
- Whether the client will be liable for expenses and how those will be deducted
- If the client will be liable for expenses regardless of the outcome
At the conclusion of the matter, the lawyer must provide the client a written statement of the outcome and, if there was a recovery, show the remittance to the client and the method of determination
Limitations on Contingency Fees
Contingency fees are prohibited in certain types of cases under Rule 1.5(d):
- Domestic relations matters where the fee is contingent on securing a divorce or the amount of alimony, support, or property settlement
- Representing a defendant in a criminal case
In addition, the Oklahoma statute limits contingency fees to a maximum of 50% of the net amount recovered.
“Reasonableness” of Fees
All fees, including contingency fees, must be “reasonable” under the factors outlined in Rule 1.5(a). These factors include:
- The time and labor required, novelty and difficulty of the issues, and skill required
- The likelihood of precluding other employment by the lawyer
- The customary fee charged in the locality
- The amount involved and results obtained
- Time limitations imposed by the client or circumstances
- The nature and length of the professional relationship
- The experience, reputation, and ability of the lawyer
- Whether the fee is fixed or contingent
The “reasonableness” standards for a contingency are often addressed when a court approves a settlement for a minor or if fees are awarded against the opposing side in a case.
Statutory Attorney Fees and Contingency Fees
In some cases, statutes allow the prevailing party to recover attorney fees from the losing party. These statutory fees can co-exist with a contingency arrangement between the attorney and client.
According to Ethics Opinion No. 325 issued by the Oklahoma Bar Association, a contingency fee agreement may specify that any statutory attorney fee award will be added to the judgment amount and the contingency percentage taken from the aggregate. However, the agreement cannot allow the attorney to retain the full statutory and contingency fees, which would be considered unreasonable.
The client has the right to negotiate regarding any statutory attorney fee award. The attorney has an obligation under Rule 1.4 to adequately explain to the client their obligations regarding both the contingency fee and any statutory fee.
Contingency Fee Frequently Asked Questions
Are contingency fees allowed in all types of cases in Oklahoma?
No, contingency fees are prohibited in criminal defense cases and domestic relations matters.
Are contingency fees negotiable?
Some attorneys may be willing to negotiate the contingency fee percentage based on the specifics of your case. It never hurts to ask, especially if you have a good case.
Will I have to pay back my attorney if I lose my case?
Under a contingency fee, you typically will not owe your attorney any fees if no money is recovered. However, depending on the fee agreement contract you signed, you may still be responsible for reimbursing advanced costs. Make sure you understand the contract before signing it.
Is there a maximum percentage allowed for contingency fees?
Yes, the Oklahoma statute limits contingency fees to a maximum of 50% of the net amount recovered. Focus on the “net amount” here. For example, an attorney charges 45% on a case that goes to trial. Let’s assume the jury verdict is $100k (the “Gross Amount”). The attorney fee is $45k, but the case costs would need to be $5k or less to meet the 50% threshold.
Must contingency fee agreements be in writing?
Yes, Rule 1.5(c) requires contingency fee agreements to be in writing and signed by the client.
Can an attorney collect a statutory attorney fee award and a full contingency fee?
The Oklahoma Bar Association has determined this would be an unreasonable fee. The statutory fee can be added to the judgment to calculate the contingency fee.
Who has the right to negotiate a statutory attorney fee award?
The award belongs to the client, who has the right to negotiate or waive the statutory attorney fees.