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Personal injury litigation is one of the few areas of
the law where even the poor have equal access to justice.
The reason for this is the contingent fee agreement.
With a contigent fee agreement a
client pays the attorney a percentage of the total amount
of any recovery in their claim, whether by settlement,
jury verdict or some other alternative dispute resolution
procedure. The "contingent" aspect of the
fee means that if there is no recovery, there is no
attorney fee.
The contingent fee must be distinguished
from expenses, which ordinarily remain an obligation
of the client. In many cases the attorney will advance
expenses during the time the case is pending and will
deduct the expenses from the client's share of any recovery
at the conclusion of the case.
There are a number of advantages
to the client in this type of fee arrangement, the most
obvious of which is the absence of risk in owing an
attorney fee when there has been no recovery. Another
advantage is that the client feels more secure knowing
that the attorney is sitting in the same boat--if the
client goes down so does the attorney. The fact that
an attorney is willing to handle a client's case on
a contingent basis tells the client that the attorney
has a high degree of confidence in the case.
A final advantage of the contingent
fee agreement is that it motivates the attorney to maximize
the client's recovery. In other types of litigation
where clients pay the attorney by the hour for their
time, it makes little economic difference to the attorney
whether the client has a successful outcome. In contingent
fee cases the attorney's own recovery is tied to his/her
results, so it is important he/she put in the time and
effort necessary to bring about the greatest recovery.
The percentage to be charged on
a contingent fee case, to a large extent, depends on
the type of case. In automobile accident litigation
a contingent fee of 1/3 of the recovery is common. Medical
malpractice cases, product liability cases and other
more complex personal injury litigation often are handled
on a higher percentage basis, because they frequently
consume substantially greater amounts of attorney time
and resources. Attorneys frequently advance many thousands
of dollars in expenses, including expert witness fees,
in the more complex personal injury litigation. It is
not unusual in some of these cases for expert witness
fees to exceed $20,000.00 to $30,000.00.
Workers' compensation and Social
Security Disability attorney fees are generally regulated
by the agencies administering the law and often are
somewhat less than in other areas of personal injury
litigation. Depending on the type of case, some attorneys
may charge a lower percentage on a contingent fee if
the case is settled before suit is filed, more if the
case is concluded after trial has begun or more if an
appeal is necessary. There are some advantages and some
disadvantages associated with differing percentages
within the same case, because the different percentages
may affect how the attorney handles the case. For instance,
with different percentages it may be to the attorney's
advantage to settle the case later in the proceedings,
rather than earlier, or to take the case to trial rather
than settle it.
At Dixon Truman &
Fisher many of our cases are handled on a contingent
fee basis. Regardless of the particular contingent fee
arrangement utilized, it is important that the client
understand the way it works and its advantages. We can
readily provide you with a quote as to the fee which
would apply in your case, and we welcome your inquiries.
Please feel free to email us at our main office in Las
Vegas. In the alternative, call the office of your choice.
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