Many people put off calling a lawyer after an accident because they worry about the cost. In personal injury cases, that worry is often easier to manage because most injury lawyers work on a contingency fee. That means the lawyer is paid from the money recovered in your case instead of charging you by the hour.
This guide explains how contingency fees work in Brooklyn injury cases and what to ask before you hire a lawyer. If you were hurt in a crash, a Brooklyn car accident lawyer can explain how fees would work in your case.
What Is a Contingency Fee?
A contingency fee is an arrangement in which the lawyer’s payment depends on the outcome of the case. The fee is usually a percentage of the settlement or verdict. If the case brings in compensation, the lawyer is paid a share. If it does not, many contingency agreements say you owe no attorney fee.
This setup allows people to hire a lawyer without paying thousands of dollars up front, which gives injured people a way to take on insurance companies and large businesses.
How the Process Usually Works
While every agreement is different, most contingency cases follow similar steps:
- Consultation: You meet with the lawyer to discuss what happened. At our firm, the first consultation is free.
- Written agreement: The lawyer explains the fee, how expenses are handled, and what the lawyer will do. New York rules generally require a written letter of engagement or retainer agreement for fee arrangements.
- Case work: The lawyer investigates, gathers evidence, and deals with the insurance company.
- Resolution: The case ends in a settlement or a court verdict.
- Payment: The fee and approved expenses are paid from the recovery, and you receive the rest.
Our guide on how long a personal injury case takes explains what to expect from start to finish.
Fees vs. Case Expenses
The attorney’s fee is not the only cost of a case. Expenses can include court filing fees, medical records, investigation costs, and the cost of obtaining reports. Many firms advance these costs and are repaid from the recovery, but agreements differ.
Ask how expenses are handled, including:
- Whether expenses are taken out before or after the lawyer’s fee is calculated.
- Whether you could owe expenses if the case does not succeed.
- How you will be kept informed of costs as the case moves forward.
Questions to Ask Before You Sign
Before you hire any injury lawyer, make sure you understand the agreement. Helpful questions include:
- What percentage will the fee be, and does it change if the case goes to trial?
- What expenses will be charged, and who pays them up front?
- What happens if I decide to change lawyers?
- Who has the final say on whether to accept a settlement offer?
- Will I receive a written agreement and regular updates?
Do not sign anything you do not understand. Our guide on when to hire a personal injury lawyer explains why speaking with a lawyer early can protect your claim.
Your Rights as a Client
New York has rules to protect clients. The state court system’s Statement of Client Rights says clients are entitled to reasonable fees and expenses, to have the lawyer explain how they will be computed, and to request an itemized bill. Clients can refuse a fee arrangement they find unsatisfactory, and in some situations they may seek arbitration of a fee dispute.
How Contingency Fees Relate to Insurance Offers
Insurance companies know that injured people worry about costs. They may offer a quick payment before you speak with a lawyer. Our guide on dealing with insurance companies after an accident explains why an early offer may not reflect what your claim is worth.
Talk to a Brooklyn Personal Injury Lawyer
You should know how a lawyer is paid before you hire one. The lawyers at Edelstein, Faegenburg & Blyakher, LLP can explain how fees would work in your case and answer your questions. Call us or send a message through our contact page to request a free consultation.
We also help injured people in Manhattan.