The first days after a crash bring a long list of decisions about medical care, insurance calls, and missed work. Somewhere on that list sits a question that is easy to leave unasked: “How will I pay for a lawyer?” Attorney Todd Taylor from Johnson & Taylor talks through that question with potential clients all the time, and we’d like to talk through it with you now.
How a Contingency Fee Works
Todd starts with the basics of how our personal injury attorneys are paid: “Our personal injury attorneys work on contingency, which means we are paid when your case resolves in your favor, whether through settlement, verdict, or otherwise. On average, our attorney fee rate is 33 1/3%, which is pretty standard for most personal injury claims and law firms. If you direct us to file suit or demand arbitration, our fee may increase, sometimes up to 40%, which is competitively priced compared to most injury law firms. Either way, the fee is a percentage of the total received.”
Of course, you will know our fee percentage before you decide whether to hire us. We will never spring a surprise cost on you or hide a fee behind small print. Transparency with our rates and fee structure is a point of pride at Johnson & Taylor.
Attorney Fees and Case Costs Are Different
Todd points out a second part of the arrangement that is easy to confuse with the fee: “In addition to our fee, we have actual costs. Those include gathering evidence, filing fees, hiring experts, and similar expenses.”
Costs are not the same as attorney fees. Costs are the expenses of working your case, and they build up as we gather evidence and move your claim forward. We estimate those costs as honestly as we can, and we tell you when a new one comes up. If your case succeeds, we take the costs out of your settlement or award alongside our attorney fee. If there is no recovery, you owe no attorney fee, but you may still owe the case costs, which is standard for contingency arrangements.
For example, imagine that your case settles for $90,000 (on top of medical bills paid by the PIP carrier) before a lawsuit is filed, and the case costs total $6,000. Before you hired our firm, you agreed to a one-third or 33 1/3% contingency fee rate.
In that situation, the money would be divided as follows:
- Settlement: $90,000
- Attorney fee at one-third: $30,000
- Case costs: $6,000
- Total amount paid to us: $36,000
- Amount left for you: $54,000
Paying Nothing Up Front Can Go Far
Todd explains why contingency fee structures are important for most personal injury clients: “A contingency fee arrangement means you pay nothing up front. That can be a big help to injured people who are already dealing with injuries, getting to the doctor, and possibly missing work or looking for a new vehicle. Nobody should have to come up with money out of the blue to hire a personal injury attorney. You should be focused on healing and getting the care you need.”
Emergency visits, follow-up appointments, and physical therapy can produce bills before your claim resolves. Who pays those bills while your claim is open depends on the coverage available to you, and an attorney can help you sort through it. We take on that work so you can keep your attention on recovery.
Think It Over Before You Hire Anyone
Todd likes to tell his potential clients: “They should always give our fee structure serious consideration before deciding to hire us. We want everyone to feel confident they’ve made the right choice, which means no pressure.”
We agree with him. A fee is easier to weigh when you know what it covers and how it works, so we encourage you to ask any attorney you talk to a few questions.
- What percentage will you charge, and does it change if the case goes to a lawsuit or arbitration?
- Which case costs should I expect, and how will you keep me updated as they change?
- When are costs and fees deducted from a settlement or award?
- What do I owe if there is no recovery?
We answer each question honestly before you decide. Our attorneys are dependable negotiators, stay trial-ready, and bring in outside experts when your case calls for them. You can weigh the fee against that work, as well as what you think you might risk if you don’t hire a lawyer.
Talk With Us Today About Our Fee
If you have questions about how our fee works, we are glad to talk them through. Contact Johnson & Taylor at (971) 318-5516 so you can discuss our typical fees, costs, and options before you decide anything.
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