If you have been injured in an accident, you may wonder how to hire a lawyer to help you pursue compensation. Fortunately, many personal injury lawyers in North Carolina work on a contingency fee basis.
This makes legal help accessible to those who cannot afford it upfront. Here is what you need to know about contingency fee arrangements in North Carolina.
What Is a Contingency Fee?
A contingency fee is a payment arrangement in which a lawyer’s fee depends entirely on the outcome of the case. Rather than charging an hourly or flat fee, the lawyer only gets paid if they successfully recover compensation through a settlement or judgment. The lawyer’s fee is usually a percentage of the total recovery.
Some typical features of a contingency fee arrangement include:
- No upfront legal fees required from the client
- Attorney fees typically range from 25 to 40 percent of the final settlement or verdict
- No attorney fees are owed if compensation is not recovered
Attorney fees are contingent upon recovery, but other costs, such as filing fees or expert witness expenses, may be the client’s responsibility. Some firms advance these costs and reimburse them from a settlement or judgment. Your lawyer should fully explain how expenses are handled and when they may be deducted.
Why Do Clients Like Contingency Fees?
Contingency fee arrangements offer peace of mind for personal injury victims. Dealing with medical bills, lost income, and other financial pressures after an accident can make paying for a lawyer feel impossible. A contingency fee arrangement eliminates that concern.
Clients often choose contingency fee agreements because:
- They eliminate financial risk.
- They align the lawyer’s incentives with the client’s goals.
- They make legal help accessible to people regardless of income.
Clients can focus on their recovery, knowing their lawyer is fully invested in securing a favorable outcome. It also levels the playing field, allowing lawyers to take on cases where they believe they can truly make a difference. This shared interest in success creates a partnership between lawyer and client that benefits both.
Why Do Lawyers Like Contingency Fees in North Carolina?
Contingency fee arrangements also benefit lawyers. These agreements enable lawyers to take on cases they believe in and invest the necessary resources to achieve a successful outcome. In return, lawyers earn a percentage of substantial settlements or verdicts.
Lawyers value contingency fee agreements because:
- They encourage lawyers to prioritize strong cases.
- They foster trust and transparency between lawyer and client.
- They reward attorneys for successful outcomes, not billable hours.
This motivates lawyers to work diligently, as their success is directly tied to the client’s success. Do not hesitate to ask questions if you are unsure about a contingency fee arrangement. A personal injury lawyer can walk you through every detail to ensure you are comfortable.
Does North Carolina Have Rules for Contingency Fees?
Contingency fee agreements in North Carolina are governed by the Rules of Professional Conduct established by the North Carolina State Bar. These rules are designed to protect clients and ensure fairness in how lawyers structure their fees. Personal injury lawyers are required to comply with these regulations.
Under North Carolina law, contingency fee agreements must:
- Be in writing and signed by the client.
- Clearly outline how fees are calculated, including percentages.
- Explain how case-related expenses will be handled.
It is also important to note that contingency fees are prohibited in certain types of cases, including criminal defense and most family law matters. However, their use in personal injury cases is commonplace and offers clients a fair and transparent path to legal representation.
Common Misunderstandings About Contingency Fees
There are many misconceptions about how contingency fees work, despite their widespread use. Understanding these misunderstandings can help you avoid confusion or surprise later in the process.
Some of the most frequent misconceptions include:
- “I won’t owe anything if we lose, including case costs.” Attorney fees are contingent on winning, but you may still owe case expenses unless your agreement specifies otherwise.
- “All lawyers charge the same percentage.” Contingency fee percentages can vary depending on the complexity of the case and the stage at which it resolves. Be sure to discuss the specific fee that may apply with your lawyer.
- “The lawyer’s fee comes out after all expenses are paid.” A lawyer’s percentage is typically calculated based on the gross recovery, and expenses are deducted afterward.
Understanding these nuances can help you avoid surprises and increase your confidence moving forward. Your lawyer should clearly explain these details during a free initial consultation and in a written fee agreement.
Contact the Raleigh Personal Injury Lawyers at Riddle & Riddle Injury Lawyers for Help Today
Contingency fee agreements provide injured people in North Carolina with a valuable opportunity to pursue justice without worrying about legal costs. They also keep your lawyer motivated to fight for maximum compensation on your behalf.
If you have been hurt in an accident in North Carolina, a Raleigh personal injury lawyer at Riddle & Riddle Injury Lawyers can explain how a contingency fee arrangement would apply to your case. Contact us today to schedule a free consultation.