The last thing you probably want to think about after a car accident is another potential bill. You’re probably dealing with medical and property damage expenses. You may even be missing out on paychecks if your injuries are preventing you from returning to work.
While you know an attorney can help with the insurance claim process, you simply can’t afford another expense. So, what are the potential costs of hiring a Florida accident lawyer? Hiring a personal injury attorney may be more affordable than you think, at least at the start of your claim.
Fee Structures for Personal Injury Attorneys
Personal injury lawyers have a little more freedom in their payment structures compared to other types of attorneys. All lawyers, regardless of their practice field, can charge hourly and fixed rates.
Hourly rates are precisely what the name implies. You pay your attorney a set rate for every hour they work on your claim. If you have a complex personal injury claim, hourly rates can quickly add up—this can be especially true if your claim goes to civil court as a personal injury lawsuit.
Fixed rates may be less expensive in the long run. You pay a set rate for the attorney to work on your claim. Since you know the total cost upfront, you don’t need to worry about fees adding up. However, most attorneys are going to want at least partial payment upfront, and this means scrambling to find the attorney’s fee.
For some accident victims, this is all but impossible. Don’t worry, you have another option. Personal injury attorneys can work on a contingency fee basis.
Understanding Contingency Fees in Florida
Personal injury attorneys are legally allowed to offer clients contingency fees as a payment method. How the payment structure works is fairly simple.
You agree to pay your attorney a set percentage of your settlement award. The attorney agrees to take your case and wait to receive payment. If the attorney isn’t able to win your personal injury claim, you don’t owe them for their time and effort.
So far, everything sounds great. You can retain legal representation without having to pay anything upfront.
Contingency fees don’t always cover every expense your attorney may incur in your personal injury claim, and this can leave you with an unexpected bill after settling your injury claim. Now, you’re not only paying the contingency fees out of your settlement check, but you’re also on the hook for the other expenses. What are some expenses commonly not covered by contingency fees?
- Deposition costs
- Postage and copies
- Expert witness fees
- The costs to acquire accident reports, medical records, and other documents
- Court filing fees and costs
- Video deposition fees
- Trial exhibit preparation
- Travel costs
Your attorney typically covers these costs while your case is ongoing. Once your claim is settled, your lawyer deducts these costs, along with the original contingency fee. Something else that may come out of your settlement check is any liens.
Your attorney may recommend taking out a lien like a medical one to help you avoid a failure to pay the claim. Once you receive your settlement check, any liens will be paid off before you see any of your financial awards.
Florida’s Guidelines for Contingency Fee Agreements
Even though contingency fees are perfectly legal, Florida law sets down some guidelines. Failing to follow the guidelines can result in the court nullifying the contingency fee agreement.
When this happens, you usually need to start the claim process all over again. Florida Rules of Professional Conduct govern the requirements for contingency fee agreements.
Get Everything in Writing
The days of sealing a deal with a handshake are unfortunately long gone. Now, for an agreement to be legally binding, it must be in writing. Along with writing out all of the details of the contingency fee agreement, it must be signed and dated by both the attorney and the client.
While this isn’t a requirement, it’s not a bad idea to have a witness sign the agreement. The witness can be the attorney’s assistant. If you showed up at the attorney’s office with a supportive friend or family member, they can also be a witness.
Did You Review the Client’s Rights
All attorneys may inform their clients of their rights. For example, you have the right to terminate the partnership with the attorney. However, this right can also come with a cost. You may owe the attorney for the time they worked on your claim—but this should be included in the contingency fee agreement.
Don’t forget to sign or initial next to the paragraph outlining your client rights, which demonstrates you’ve read and understand your rights as a client.
Another right that won’t cost you a dime is you can end the partnership with your attorney within 3 business days of signing the contingency fee agreement. As long as it hasn’t been over three days, you can terminate a contingency fee agreement without owing your attorney anything.
List All Fee Percentage and Any Potential Additional Costs
The Sunshine State requires all contingency fee agreements to list all agreed-upon costs along with any potential extra expenses. If you’re wondering about the average contingency fee rates, it varies depending on a few factors. The attorney’s level of experience and type of accident claim can all affect contingency fee rates.
On average, most personal injury attorneys charge between 25% and 40% in contingency fees. While you have the right to negotiate your contingency fees, once the agreement is signed you’re locked in.
Partnering with an Accident Attorney Can Be Affordable
Retaining legal representation can be more affordable than you may believe. Contingency fees allow you to work with an experienced accident attorney without having to pay upfront costs.
However, this doesn’t mean you’re receiving free legal counsel. Once your case settles, you’ll need to pay your attorney—this may also mean taking care of additional costs not covered by contingency fees.
To help ensure you’re not facing surprise costs after settling your injury case, make sure your attorney is upfront about any potential extra costs and always get everything in writing.
