An accident can have a devastating effect on a person’s finances. Most people want to recover their lost wages, medical bills, and other damages as fast as possible, but some hesitate because they worry that the cost of litigation is just another expense they can’t afford. How much does a car accident lawyer cost? The answer depends on multiple factors, including the final settlement amount and the lawyer’s expenses.
Fortunately, most personal injury trial lawyers work on contingency, which means the plaintiff does not need to pay anything upfront to begin litigation in most cases. While some lawyers in New York charge an average of nearly $380 per hour for their services, personal injury attorneys are typically paid a percentage of the final settlement amount. This motivates attorneys to work hard to get the maximum amount for their clients.
What Is a Contingency Fee?
A contingency fee is a percentage of the final settlement amount that the lawyer takes as compensation after deducting the expenses incurred throughout the litigation process. In New York State, contingency fees are capped at 33.33%.
However, state law permits lawyers to charge a higher percentage of smaller settlement amounts on a sliding scale. For example, a lawyer may charge 50% on the first $1,000 of the settlement, 40% on the next $2,000, 35% on the next $22,000, and 25% on any amount over $25,000.
Other Fees Deducted
Unless it’s specified in the retainer agreement, the contingency fee doesn’t cover everything. Before the lawyer takes his or her contingency fee, they will deduct all the associated litigation costs known as fees and disbursements. While the contingency fee is a straightforward percentage, the precise amount of these costs will vary greatly depending on the complexity of the case and whether it goes to trial. Most cases are settled without a trial, but a case may need to go before a jury if lawyers cannot reach an agreement, which drastically adds to the lawyer’s expenses and time committment.
Here are some examples of fees and disbursements:
- Filing fees
- Private investigator
- Printing and copying
- Additional medical testing
- Trial costs
- Expert witnesses
What If the Plaintiff Doesn’t Recover?
Because they work on contingency, personal injury lawyers typically only take cases when they are confident that they can achieve a settlement that is satisfactory to their client and adequately compensates them for the time they’ve invested. However, a settlement cannot be reached in all cases. The retainer agreement between a lawyer and their client will state who is responsible for the lawyer’s compensation and costs in the event that this happens.
Talk to a Lawyer
If you are considering a lawsuit to recover your damages from an auto accident, but you’re worried about the costs of hiring an attorney, a lawyer can walk you through the process and tell you about the expenses associated with your claim. Serving clients in Queens, NY, and the surrounding areas, Bardizbanian & Associates P.C. offers free consultations. Contact us by phone or through our website to set one up today.
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