Large corporations and insurance companies have the resources to pay attorneys $250 to $500 per hour to defend claims brought by injured people. However, most injured people do not have the resources to pay an attorney such an hourly rate to recover the compensation they are owed. For this reason, BWS, and most other injury attorneys, will handle cases for injured people on a contingency fee basis. This means the attorney is paid only if he or she recovers compensation for the injured person. The attorney will be paid a percentage of the amount recovered. A contingency of 33% is customary. A 40% contingency percentage is sometimes used in more complex cases. If the attorney does not recover compensation for the injured person, the attorney does not get paid for the time spent on the case, which can be substantial.
While many accident victims understand that the attorneys’ fee is contingent on winning the case, most do not fully grasp the extent to which a contingency fee can insure full compensation for medical expenses and property damage or loss. Imagine you are involved in an accident. Your injuries prevent you from working, and your savings are insufficient to cover your exorbitant medical bills, let alone pay an attorney $250-$500 dollars an hour to represent you. The contingency-fee arrangement protects you, deferring legal expenses until you recover the compensation you are owed.
Additionally, a contingency fee ensures that your interests are aligned with your attorney’s interests. While an attorney working on an hourly basis gets paid whether or not his client wins the case, an injury attorney working on a contingency fee basis only gets paid if you win the case. An injury attorney working under a contingency fee is also motivated to maximize your recovery because the higher your recovery, the more the attorney gets paid.
Many critics of attorneys claim contingency fees cause frivolous lawsuits. The opposite is true. Personal injury lawsuits require much effort and expense. An injury attorney must hire experts to help build the case, which can cost the attorney $30,000 to $100,000 in some cases. Attorneys are not reimbursed for these expenses if they lose the case. It is not unusual for the attorney and staff to put more than 200 hours into a case. Too many lost cases can cause an attorney to go out of business. Consequently, smart injury attorney only take cases that have merit and are likely to lead to a favorable verdict if the case goes to trial.
