After an accident, many people hesitate to contact a lawyer because they worry about the cost.
Medical bills, lost wages, and other unexpected expenses can make paying hourly legal fees seem impossible.
Fortunately, most personal injury lawyers work on a contingency fee basis. This payment arrangement allows injured victims to hire an attorney without paying upfront legal fees.
Understanding how contingency fees work can help you make an informed decision about seeking legal representation after an accident.
Understanding Contingency Fees
A contingency fee is a payment arrangement in which a personal injury lawyer is only paid if they successfully recover compensation for the client.
Instead of charging an hourly rate or requiring a large retainer, the attorney’s fee is generally a percentage of the amount recovered through a settlement or court award.
If there is no financial recovery, the client generally does not owe attorney’s fees.
This type of arrangement allows injury victims to pursue justice without worrying about paying legal fees while their case is pending.
How Does a Contingency Fee Work?
Although every law firm has its own fee agreement, the process typically follows these steps:
- You meet with a personal injury attorney for a free consultation.
- The attorney evaluates your case and determines whether they can represent you.
- If you hire the attorney, you will sign a written contingency fee agreement that explains how fees will be calculated.
- The attorney investigates your claim, gathers evidence, negotiates with insurance companies, and, if necessary, files a lawsuit.
- If your case results in a settlement or verdict, the attorney receives the agreed-upon percentage from the recovery.
- The remaining funds are distributed to you after any applicable case expenses, medical liens, or other required deductions are addressed.
The specific percentage and terms should always be explained in writing before representation begins.
Why Do Personal Injury Lawyers Use Contingency Fees?
Contingency fee arrangements benefit both clients and attorneys.
For injured victims, they make experienced legal representation accessible regardless of financial circumstances. Many people could not afford to pursue a claim if they had to pay thousands of dollars up front.
For attorneys, contingency fees create an incentive to pursue the strongest possible outcome because their payment depends on obtaining compensation for the client.
This arrangement also allows lawyers to carefully evaluate cases before accepting them, ensuring they believe there is a reasonable basis for pursuing compensation.
What Types of Cases Usually Use Contingency Fees?
Contingency fee agreements are common in many types of personal injury cases, including:
- Car accidents
- Truck accidents
- Motorcycle accidents
- Bicycle accidents
- Pedestrian accidents
- Slip and fall accidents
- Dog bite claims
- Premises liability cases
- Construction accidents
- Wrongful death claims
- Product liability cases
- Medical malpractice cases (where permitted by state law)
If your injuries resulted from someone else’s negligence, there is a good chance your attorney may offer representation through a contingency fee agreement.
What Expenses Are Separate from Attorney’s Fees?
Attorney’s fees and case expenses are not always the same thing.
While the attorney’s fee is the agreed-upon percentage of your recovery, pursuing a personal injury claim may involve additional litigation or case-related costs.
Depending on the circumstances, these expenses may include:
- Court filing fees
- Medical record retrieval costs
- Expert witness fees
- Deposition expenses
- Accident reconstruction costs
- Investigation expenses
- Postage and document preparation costs
Many personal injury firms advance these expenses while the case is pending and recover them from the settlement or verdict if the case is successful. Every law firm handles costs differently, so it is important to ask how expenses will be managed before signing a representation agreement.
Are Contingency Fees Better Than Hourly Billing?
For most personal injury victims, contingency fees offer significant advantages over hourly billing.
With hourly billing, clients typically pay for every hour their attorney spends working on the case, regardless of the outcome. Those fees can quickly become substantial, especially in complex litigation.
A contingency fee shifts much of the financial risk away from the injured client. Instead of worrying about ongoing legal bills, clients can focus on their medical treatment and recovery while their attorney handles the legal process.
That said, every fee arrangement should be carefully reviewed so you understand exactly how attorneys’ fees and case expenses will be handled.
Are Contingency Fees Regulated in Arizona?
Yes. Arizona permits contingency fee agreements, but they are governed by the Arizona Rules of Professional Conduct. These rules are designed to help ensure clients understand how attorneys’ fees will be calculated and what costs they may be responsible for during the case.
Generally, a contingency fee agreement should:
- Be in writing
- Be signed by the client
- Clearly explain how the attorney’s fee will be calculated
- Describe how case expenses and litigation costs will be handled
- Comply with Arizona’s ethical rules for attorneys
Before you hire a lawyer, carefully review the fee agreement and ask questions about anything you do not understand. A reputable Arizona personal injury attorney should explain the terms clearly so you know what to expect before your case begins.
Should You Hire a Lawyer on a Contingency Fee Basis?
For many accident victims, hiring a lawyer through a contingency fee agreement provides access to experienced legal representation without adding immediate financial stress.
An attorney can investigate the accident, preserve important evidence, communicate with insurance companies, calculate your damages, negotiate for a fair settlement, and represent you in court if necessary. Because the attorney’s payment generally depends on recovering compensation, both you and your lawyer share the goal of obtaining the best possible outcome.
Contact an Arizona Personal Injury Lawyer at AJ Law, PLC for a Free Consultation
If you have been injured because of someone else’s negligence, you do not have to let concerns about legal fees prevent you from seeking help. At AJ Law, PLC, we handle personal injury cases on a contingency fee basis, so you pay no attorney’s fees unless we recover compensation for you.
Contact us at (602) 671-2363 for a free consultation with an Arizona personal injury lawyer and learn more about your legal options.
