Table of Contents
ToggleHiring an attorney can be expensive. However, you probably don’t want to pursue a personal injury claim without legal guidance.
So, how are you supposed to come up with attorney fees after being injured in an accident? You have medical expenses and probably property damage costs. The last thing you need is another bill.
However, personal injury attorneys can work on a contingency fee basis. This can make hiring an accident attorney surprisingly affordable. Unfortunately, navigating contingency fees in a Florida injury case can be complicated. You and your attorney must follow a few rules.
What Are Contingency Fees?
If you’re not sure what contingency fees are, the premise is fairly simple. An attorney agrees to work on your injury case without upfront payment.
Instead of charging an hourly or flat rate, the attorney agrees to work for a percentage of your settlement check. The lawyer is only paid if your case is successfully settled. If the insurance company denies your claim, you don’t owe the attorney for the work they put into your case.
You and the attorney will sign an agreement that also states the contingency fee percentage. If the percentage the attorney receives isn’t included in the agreement it may not be accepted by the court. If the court determines that the agreement isn’t valid, you may lose your legal representation.
Average Contingency Fee Percentages in Florida
Contingency fee percentages can vary for a few reasons. The complexity of the case and the attorney’s level of experience can impact contingency fee rates. Even where you’re filing the injury claim can impact contingency fees. For example, personal injury attorneys in New York City typically charge higher contingency fees than lawyers in a more rural area.
In Florida, contingency fee rates tend to average between 33.3% and 40%. This is also the national average. However, you should expect contingency fee rates to increase past 40% if you have a complex injury case. The higher fee rates reflect the additional time, resources, and effort the attorney needs to devote to your case.
Key Factors Affecting Contingency Fees
Personal injury attorneys aren’t going to pull a number out of the air as they’re determining contingency fee percentages. Instead, your attorney will consider a few factors.
The complexity of your injury case. Some cases are more challenging like ones involving a life-altering injury or if liability is being disputed. Contingency fees are usually higher in these types of cases since the attorney needs to dedicate more time and resources to proving your claim.
Longer cases typically mean higher contingency fees. This helps cover the lack of clients the attorney can take on while litigating your accident case.
Sometimes personal injury attorneys will charge higher contingency fee rates for cases with a high risk of losing in court. However, your attorney should let you know in advance if your claim is considered high-risk.
Potential Costs Not Covered By Contingency Fees
Contingency fees don’t always cover everything. After winning your personal injury claim, your settlement check is typically sent to your attorney. Your lawyer deducts their contingency fees and you get the remaining balance. However, you may still have outstanding legal expenses.
So, what isn’t covered by contingency fees? This can include anything from court filing costs to expenses relating to expert witness testimony. You may also owe fees for copies of your medical records and accident report. These are only a few examples of what may not be covered by your contingency fee agreement.
Does the Court Cap Contingency Fees in Florida?
The court can step in and cap contingency fee amounts. The Florida Bar also regulates contingency fee amounts. This helps protect clients from being overcharged for legal services. Currently, the Florida Bar bases contingency fee caps on settlement amounts.
For example, most claims with potential settlements up to $1 million have contingency fees capped at 33%. As the settlement amount increases so do the contingency fees, usually up to 40% for complex personal injury lawsuits.
If you’re wondering when the court plays a role in capping contingency fees, this usually only happens when a claim is being filed on behalf of a minor.
The court can ensure the contingency fees aren’t higher than the complexity of the case deserves. Another reason the court may cap attorney rates is if the contingency fees are more than the case deserves.
Creating a Contingency Fee Agreement
You can’t enter into a contingency fee agreement with a simple handshake and a promise to pay a portion of your settlement to the attorney.
Everything must be in writing, there aren’t any exceptions to this rule. If the court learns there isn’t a binding agreement, they can decide to terminate your partnership with your attorney. This can significantly delay your injury claim and may even result in an automatic denial. Now you’re back to the beginning of the claim process.
So, what needs to be included in a contingency fee agreement? It must name the attorney as your legal representative and you as the client, so that way, you don’t need to worry about any issues of client-attorney privilege popping up during the legal process.
Your agreement must also include the core contingency fee percentage rate, along with any potential additional expenses that come with the services you’re supposed to be receiving. Remember, these are usually things like fees for obtaining records and other miscellaneous items.
Something you may not consider is what happens if your accident claim isn’t successfully settled. While you’re not going to owe your attorney any contingency fees, you may still have other expenses.
Your agreement should address what you may owe if your claim is denied. After going over and signing the agreement, it’s considered a legally binding document.
You Can Afford an Attorney After an Accident
You don’t have to go through the claim process alone. You can afford legal representation. Contingency fees can make it possible for you to work with a personal injury attorney, just make sure you have a concise and transparent agreement.