| Contingent
Fees:
In certain types of lawsuits such as personal injury, collections
and auto damages the lawyer who represents the person suing may agree
to accept a part of the money the client recovers as the fee for services.
Such an arrangement is called a contingent fee. Under the lawyer's
ethics rules, the lawyer and client must enter into a written fee
agreement at the outset of the representation, stating what portion
of the recovery the lawyer will receive. The fee is generally fixed
at a percentage of the recovery. An additional percentage may be added
if the matter is tried again or appealed to a higher court. Customarily,
the attorney does not receive any contingent fee when the lawsuit
is unsuccessful, but the client is expected to reimburse the attorney
for out-of-pocket expenses such as court filing fees or expenses paid
to witnesses. If the client wins the suit, these same expenses may
be deducted from the client's share of the recovery. In a contingency fee contract, you and your lawyer agree that the lawyer will not get paid any fees unless you win your case. However, even if you do not win your case, you will have to pay your attorney costs unless your contract specifically says that you do not have to. The contingency fee contract must be in writing and signed by the client and any attorney or law firm who will be paid under the contract. The contract must state what percentage of the recovery the attorney may keep, other expenses which will be deducted from the recovery and how these expenses will be deducted. How much the attorney will be able to keep as a contingency fee (remember this does not include costs) will depend on what stage of the case you are in and how much is recovered. The following limitations are contained in the Rules of Professional Conduct and only apply in cases involving personal injury or property damage that occurred as a result of tortious conduct such as auto accident, medical malpractice or products liability cases. You and your attorney may agree to a lesser percentage than those listed below. However, if you want the fee to be greater, you must go to court before your case is filed or at the same time your complaint is filed to get the percentage increased. |
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