If you have ever seen a commercial for a personal injury law firm or viewed an attorney’s website, you have probably seen some reference to the phrase “no recovery, no fee.” But what does no recovery, no fee mean to you? This billing approach gives you the ability to pursue your personal injury lawsuit without bearing any of the financial risks.
It is common for personal injury firms to carry the risk of your case, and our firm is no different. Our team provides legal services related to your personal injury case without any upfront fees or costs. This approach lets you move forward with your case regardless of your financial position.
What Is a Contingency Fee Agreement?
When a personal injury attorney works on a contingency fee agreement, they agree to waive any upfront fees or costs. Instead of being paid directly by the client, an attorney working on a contingency basis retains a portion of the compensation they collect for their client as their fee.
The contingency rate is agreed upon up front before an attorney begins working. That means there are no surprises regarding their fee once a settlement occurs. Attorneys often charge a different percentage from each other, but that percentage will not be more than half.
The attorney carries all of the risk when working on a contingency basis. That is because they will not receive a fee if the case is unsuccessful. An attorney will only pay a fee out of the proceeds they receive from the other side, meaning they do not have to pay out of pocket.
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Who Benefits from a Contingency Fee Agreement?
You benefit from having an attorney work on a contingency fee agreement in your case. This could allow you to pursue financial compensation regardless of your circumstances.
No Financial Risk
If you are required to pay your legal fees up front, you would carry the risk of the case not working out in your favor. With a contingency fee agreement, your attorney only gets paid when you do. That means they carry the risk of pursuing your injury case.
Your Attorney Shares Your Motivation
Your attorney makes more when you make more. That means you do not have to worry about legal counsel that is willing to accept an unreasonable settlement because it is beneficial to them on a personal level.
No Upfront Costs
It is not unusual to face financial hardship following a serious injury. No one expects to be overwhelmed with medical bills, but after an accident that is exactly what can happen. If that weren’t enough, many people are too injured to return to work. This could further complicate their financial situation.
If your finances are tight after an accident, the thought of hiring an attorney might be too much. A contingency fee agreement allows you to pursue your case without the need for paying any upfront fees.
Other Types of Attorney Compensation
Not all attorneys work on a contingency fee basis. While this approach is common in personal injury cases, it is uncommon in other areas of law like corporate litigation. In some situations—including divorce proceedings—it is unethical for an attorney to secure their fee on a contingency basis.
One of the most common approaches to attorney fees is billing by the hour. Billable hours are uncommon in personal injury cases, but it is the normal form of attorney billing in many other types of civil litigation. With this approach, every attorney has their hourly rate. They keep track of the amount of time they spend on a case before billing the client accordingly. With these cases, attorneys typically require retainers. A retainer is a pool of money the client must pay into before an attorney will begin work. The attorney will then draw their fee from that pool over time.
Other attorneys operate on a flat fee approach. This method is most common in traffic and minor criminal cases. For example, many attorneys will have a flat fee they charge to handle a speeding ticket or DWI case. Some attorneys include a sliding scale where they charge more if the case goes to trial.
Discuss No-Risk Legal Representation with Our Firm
The concept of “no recovery, no fee” is a best-case scenario for anyone injured due to an act of negligence. If you hire an attorney on a contingency fee basis, you have an opportunity to obtain financial compensation for your injuries without carrying the financial risks on your shoulders.
The attorneys at Brown & Barron handle all personal injury cases on a contingency basis. We believe you deserve justice regardless of your financial position, and we are proud to serve as advocates for the injured without charging any fees up front. If you have questions about your options, reach out today for a free consultation.
Contact Brown & Barron online today to schedule a free case review.