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There seems to be some kind of mystery surrounding lawyer fees. Let's clear up the mystery right now, so clients can understand how fees and costs work in a personal injury matter. Hourly Rates and Retainers Lawyers sometimes charge by the hour. They have an hourly rate which the client pays for the attorney's work. In these cases, the client usually deposits money with the firm in advance, called a retainer. The attorney places the client deposit in a special bank account, where the money stays until the lawyer has completed the work for which the client has paid. Then, once that work is completed, the attorney draws the money from the special bank account and places it into the firm account. Contingency Fees and Costs On personal injury matters, lawyers sometimes make an arrangement with the client to be paid a fee based on the actual compensation awarded to the client. The attorney and client enter into a contract, where the client agrees to pay the attorney a percentage of the money recovered in the lawsuit. If the attorney is able to obtain compensation for the client, the attorney takes a percentage of the compensation as his fee for his work on the case. If the attorney is unable to obtain compensation for the client, the client does not owe the attorney anything for his fees. The attorney is only paid when the client recovers compensation for his or her injuries. Costs Costs are additional expenses above and beyond attorney fees. While an attorney on a contingency case will not charge a fee, there may be costs which must be paid as the case proceeds. Examples of costs are charges for doctor reports, psychologists, experts, transcript charges, etc. Call the firm if you need to understand more about costs. Benefits of a Contingency Fee Arrangement Contingency fees have come under attack by those who feel that attorneys are paid too much under this arrangement. In evaluating the contingency fee, it's important to consider the following: Contingency Fee Arrangements provide greater access to legal services. Since clients do not have to pay fees to the attorney, clients with little or no money can have the resources of an attorney on a legal matter. Contingency Fee Arrangements protect clients from spending money on a legal matter, and then being worse off if they do not win the case. Since clients don't have to pay the attorney if they lose the case, the client can avoid the "double whammy" of losing a case AND being faced with a hefty legal bill. The client can reject the Contingency Fee Arrangement and opt to pay the attorney by the hour, even for personal injury matters. Clients who feel more comfortable paying by the hour may still choose to hire an attorney that way. In this case, the client does not share any winnings with the attorney - the lawyer is paid by the hour. However, should the client lose the case, the attorney keeps his hourly fees and the client recovers nothing.
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The information presented on this web site does not constitute legal advice. No attorney-client relationship has been created. Readers are strongly encouraged to contact the firm for professional advice before making any decision of a legal nature. Family Lawyer Service is licensed in the Commonwealth of Pennsylvania. |
