Personal Injury Claim, Compensation and Settlement Amounts
Typically personal injury lawyers’ fees are based on a number of factors, which may include the time and energy spent on a case, the outcome of a case, the difficulty of a claim, the experience and prominence of the lawyer, and the costs associated with the case. There are several standard payment options a personal injury lawyer may offer his/her clients. These options include contingency fees, hourly rates, flat fees, and retainers.
A contingency fee is a prior arrangement between lawyer and client in which the lawyer receives a set percentage of the amount of recovery awarded to the plaintiff in a case. In most cases, monetary recovery is obtained through settlement, mediation, arbitration or trial. Generally, when a lawyer takes a case on a contingency fee, a client has no obligation to pay his/her lawyer a fee unless the case is successfully resolved. Most personal injury lawyers work on a contingency fee basis. The average contingency fee is about thirty percent.
An hourly rate is also a common payment option that involves an agreed amount of compensation for each hour the lawyer spends on the case until its resolution.
In some cases, personal injury lawyers charge a flat fee, which is a set amount, or a retainer, which is an arrangement where a certain amount of money is paid before legal representation begins. These fee arrangements may also be combined.