Types of Legal Fees in Personal Injury Cases
Before working with a Tennessee personal injury attorney, understanding how legal fees work is crucial to avoid unexpected complications in the future. So here’s what you should know:
Different Lawyers, Different Fees
Every lawyer is different. For the most part, the cost of personal injury representation services depend on the lawyer’s experience, the complexity of the individual case, and the time and resources spent resolving them.
Consultation Fees
Personal injury lawyers rarely charge consultation fees. Most will review the cases for free and only start charging once you agree to the terms. As such, it would help if you took these free consultations as an opportunity to scout for an attorney you trust to represent your interests effectively.
Contingency Fees
This is the most common type of fee arrangement for personal injury attorneys. As the name suggests, contingency fees are only payable when a specific event occurs, which, in this case, is winning your case.
The lawyer fronts all legal costs upfront, so long as you agree to pay a percentage of your settlement as contingency fees. This percentage ranges typically between 30%-40% and covers the following:
- Filing fees
- Medical reports
- Procuring police reports
- Preparing witness statements
- Office utilities and staff
Take keen notice to understand the contingency agreement before you sign it. Remember, as much as you’ll only pay this fee once your case has been expedited, it’s still critical to understand the constructive elements.
Flat Fees and Fee Arrangements
You might have encountered some firms that charge a flat fee for certain legal services, such as preparing documents like witness statements, commissioning court documents, and representing you in court.
Out of experience in handling similar matters, some lawyers can predict the time it would take to handle a specific legal task and charge a flat fee. The flat fee basis depends on the lawyer’s experience, the time spent on the case, and the complexity of the legal assistance you require. Remember to take time to review the fees when given flat fee options carefully.
Referral Fees
This is the fee payable to the person or attorney for referring a case. “Most states, including Tennessee, have strict rules governing referral fees for attorneys. In particular, the referral fee arrangement should be reasonable and guided by ethical guidelines as well as client consent,” says attorney Michael Ponce of Ponce Law.
You have a right to transparent and full disclosure from your attorney if referral fees appear on your fee agreement. The inclusion of these fees affects the contingency deductibles you will pay at the end of the case. As such, it is crucial to fully understand and be aware of the arrangement before signing your signature on the referral document.
Conclusion
If you’ve been injured in an accident and you believe it is not your fault, hiring a personal injury attorney to file your claim and seek damages from the responsible party is advisable.
Most personal injury attorneys work on a contingency basis, which means you don’t have to pay anything upfront. The lawyer’s fees as well as other legal costs will be deducted from your settlement should you win the case. However, some attorneys may charge additional fees, such as consulting costs and even referral fees. Make sure to understand the specific arrangement before signing any contract.
Also Read: The Different Types of Family Law: A Comprehensive Overview