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Understanding Personal Injury Attorney Costs

If you've been injured, you may be considering hiring a personal injury attorney to help you navigate your claim. But what does a personal injury attorney cost? Can you hire one without any money? Lots of attorneys seem to advertise a "No Win, No Fee" agreement, but what does that mean?

Here’s a straightforward guide to understanding the financial aspects of your personal injury case, including common legal fee arrangements, the handling of medical and auto bills, and options for financial support before settlement.

Contingency Fee Agreements, Explained

Under "No Win, No Fee" agreements, aka a contingency fee agreement, you are not responsible for any costs unless your attorney successfully secures a settlement or victory. You pay nothing upfront! If you do win, you will receive a settlement or verdict with one catch: all of the fees that have been incurred during the trial (as well as a few others) will be deducted from your final award.

Keep reading to find out the details of how this all works.

Understanding the Costs of the Legal Process

Here’s a breakdown of the typical costs in a personal injury case.

• Attorney Fees: Under a contingency fee agreement, the attorney's fee is a percentage of the settlement or award you win at trial. This percentage can range from 25% to 45%, depending on the case complexity. Sometimes the percentage can vary depending on what point your case settles. Typically speaking the percentage is higher if the case goes all the way through to trial.

• Court Fees: These costs include filing fees, service of process fees, and other miscellaneous court-related costs.

• Expert Witness Fees: This is usually one of the biggest costs in a personal injury case. Your attorney might want to hire an expert to review your medical damages, economic losses, or to explain how the accident caused your injuries. These medical experts, accident reconstruction experts, or other specialized professionals can charge high fees for their services.

• Depositions and Record Retrieval: To build your case, your attorney will seek to obtain video recordings, phone records, witness testimony, police reports, employment records, and other types of evidence. The cost of taking depositions or obtaining copies of these records can add up.

• Investigation Costs: This includes any costs related to investigating the details of the accident. In rare cases, an attorney might hire a private investigator.

• Travel Expenses: In the days of the past, travel was a much bigger component. This might include travel for clients, attorneys, and witnesses. Now, with remote meeting tools, travel is a lesser component of the overall expenses.

• Admin Costs: Such as costs for mailing, copying, and other necessary communication activities related to the case.

How Much Does a Personal Injury Case Cost?

The cost of a personal injury case can range from a few thousand dollars to over $100,000 in more complex cases. Here's a rough breakdown:

For simple cases, such as minor accidents or where liability is not in question, the costs might remain low. This type of case might see expenses in the $2,000 to $10,000 range.

Bumping up the complexity, if the case requires expert witness testimony, extensive evidence gathering, or goes to trial, the costs can quickly rise. In these situations, expenses could be anywhere from $30,000 to $50,000 or more.

Finally, in medical malpractice or major injury cases, costs can easily reach $100,000 or higher.

An attorney can spend tens of thousands of dollars on your case, without any guarantee they will recoup their expenses. This arrangement keeps attorneys highly invested in getting you the highest award possible.

What Are Common Contingency Fee Percentages in Arizona?

When seeking legal representation for a personal injury case in Arizona, you will typically encounter a range of fee percentages that attorneys will require. Typically, this percentage ranges from 25% to 45%. The complexity of the case often determines where it falls within this range; for instance, medical malpractice cases might warrant the higher end due to increased costs.

Some attorneys advertise that they provide a "discounted" contingency fee rate. It is important to remember that the biggest factor in your recovery will be the size of the award through either a settlement or verdict. Hiring a personal injury lawyer on the basis of the fee amount might make you overlook more important aspects of the ability of the attorney to win you the best award possible. As the saying goes, 100% of zero is zero.

Can I Get Pro Bono Help for Personal Injury?

A pro bono attorney is typically an arrangement where an attorney provides legal services to a client free of charge. In a personal injury case, this would mean that the pro bono lawyer would not take a percentage of the verdict or settlement amount. While there are pro bono personal injury attorneys, this is not a typical arrangement for several reasons. First, as we have seen, there are many costs that go into a personal injury case and those risks are usually taken by attorneys who are compensated at the end of trial or settlement. Second, most personal injury attorneys do not charge upfront fees to clients. That means there are lots of options already for clients who have been injured. Pro bono attorneys usually focus on areas of law where clients are underserved.

Why Do Personal Injury Attorneys Work on Contingency Fees?

Lawyers for the most part have decided to use the contingency fee structure for personal injury cases. The reasoning behind this is that it allows clients that otherwise would not be able to bring a case for their injuries. As we have seen, the cost of bringing a case is substantial. But if you noticed, these costs did not even include hourly expenses for the attorney. If we had to include attorney fees at an hourly rate (which can be between $300 to $1000 per hour), the costs would easily skyrocket. If an hourly arrangement was common, many people who are injured simply would not be able to afford to recover anything.

The contingency fee model allows attorneys to offer clients legal services without upfront fees, eliminating financial risk to the client and increasing the number of people that can get compensated for their injuries. When legal help is available regardless of financial status, clients can focus on their recovery rather than the potential financial burdens. The only party not helped by contingency fees are the insurance companies.

Contingency fees also align the interests of the attorney with the interests of the client. Under an hourly fee arrangement, attorneys might be tempted to take cases that have a low chance of winning or to prolong a case unnecessarily. With a contingency fee structure, since the attorney only gets paid if you win, he or she is motivated to get you the best result as fast as they can.

What Are the Benefits of Working with a Contingency Fee Lawyer?

• No Upfront Legal Fees: One of the most significant benefits is that you don’t have to worry about paying any upfront legal fees. This can be a considerable relief, especially if you’re already facing financial strain due to your injury.

• Aligned Interest: Your contingency lawyer only gets paid if they win your case or secure a settlement. Because of this, they have a vested interest in achieving the best possible outcome for you.

• Reduced Financial Risk: Working with a no win, no fee lawyer reduces your financial risk. You won’t have to pay any legal fees unless you win your case, allowing you to focus on your recovery without the added stress of legal costs.

Types of Lawyers Who Work on Contingency

While personal injury attorneys are the most common, there are several other types of lawyers that might take your case on a contingency basis. Several types of lawyers work on a contingency fee basis, making legal representation accessible to those who might not afford it otherwise. Workers’ compensation lawyers might take a case on contingency. In these cases, the lawyer will help recover lost wages and missed economic opportunities for a potential percentage of the final award. Class action lawyers represent groups of people in collective lawsuits, and disability lawyers help clients secure disability benefits. Civil rights lawyers, product liability lawyers, wrongful death lawyers, and sexual abuse lawyers also often work on a contingency fee basis, ensuring that victims can seek justice without worrying about upfront costs.

How Are Case Expenses Paid in a Personal Injury Case?

During a personal injury lawsuit, various expenses such as court fees, expert witness fees, and costs for evidence gathering are typically fronted by your law firm under a contingency fee arrangement. These expenses are then reimbursed from your settlement amount once your case is won.

Do I Get the Entire Final Settlement? What is Deducted?

After winning a settlement, law firms will typically handle several deductions before you receive your portion. These might include attorney fees, legal costs, and any medical liens or unpaid medical bills.

What Happens to Medical Bills You Paid Personally?

If you’ve already paid some medical bills, the legal system may handle the reimbursement of these amounts out of your settlement, depending on the negotiations and settlement structure.

Handling Unpaid Medical Bills and Insurance-Paid Bills

A personal injury attorney can help negotiate unpaid medical bills as part of the damages covered under “economic recovery.” If your insurance has paid some bills, they might seek reimbursement, often referred to as “subrogation,” from your settlement.

What Happens to Auto Bills I've Paid and Covered by Insurer?

Similarly, any repairs you’ve paid for may be reimbursed. Personal injury attorneys can assist in handling the reimbursement of auto bills, ensuring that you receive the compensation you deserve. For bills covered by your auto insurer, the insurer will likely seek reimbursement from the settlement.

What If I Need Money Sooner Than Settlement?

You may have seen ads for services that claim they can get you settlement money today. If you need cash before a settlement is reached, your lawyer can provide guidance on financial options such as lawsuit loans or advances. These options come with their own costs and should be considered carefully. By agreeing to cash now, you might dramatically reduce what you would have ultimately recovered.

How to Choose A Lawyer That's Right For You

When choosing a personal injury lawyer, it’s essential to consider several factors to ensure you receive the best possible legal representation. Start by looking for a lawyer with extensive experience. A strong track record of success and positive client testimonials can indicate a lawyer’s capability and reliability.

Your attorney should be transparent about their fees. Make sure you understand the terms of the contingency fee agreement and any potential out-of-pocket expenses. With Sun Law AZ, we front 100% of the costs and there are zero fees unless you win.

Additionally, it’s important to feel comfortable with the lawyer and confident in their approach to your case. Many personal injury lawyers offer a free initial consultation. This is a low-risk opportunity to discuss your case and determine if the lawyer is a good fit.

Do the Lawyers Recover Anything if They Lose the Case? What Happens to the Money They Spent?

If a lawyer loses a personal injury case under a contingency fee arrangement, they generally do not recover their attorney's fees or the costs advanced during the litigation. The principle of contingency fees is that the lawyer's payment is contingent upon winning the case. However, some contracts may specify that clients are responsible for certain court costs or other expenses regardless of the outcome, but these are usually made clear in the initial agreement between the client and the attorney.

Are There Any Rules Specific to Arizona Regarding the Cost of My Case?

In Arizona, there are no specific state regulations that vastly differentiate costs for personal injury cases compared to other states regarding legal fees under a contingency fee arrangement. It is essential for clients to thoroughly understand their fee agreement, and ensure that any potential out-of-pocket costs or specific reimbursement expectations are documented and agreed upon in the initial contract. While there is no unique state-level stipulation in Arizona regarding legal cost recovery in unsuccessful cases, the contingency mode ensures that clients generally do not bear these financial risks.

What is a Medical Lien?

A medical lien is a legal claim against a portion of your legal settlement or judgment to pay for medical services you have received and have yet to pay. In a personal injury case, healthcare providers can provide necessary treatment with the understanding that they will be paid from any future settlement. Think of it like a "treat now, pay later" arrangement.

Medical liens can be crucial for individuals without health insurance. They allow patients to receive necessary medical care despite an inability to pay upfront. Medical liens are common in personal injury cases where the treatment costs are expected to be covered by the liable party through the settlement, which can include reimbursement from the insurance of the person at fault in the accident.

What is Subrogation and Its Impact on Settlements?

Subrogation is a fancy legal term for a simple concept. Think of it like this: If you were in an accident the first thing you should do is get your injuries treated. When you go to the hospital, if you have health insurance through your job or the marketplace, that health insurer might pay for your treatment regardless of the fact that it was an auto accident. But now, your health insurance becomes an interested party - they will want to get reimbursed by either your auto insurance or the insurance of the other drivers. Subrogation is the word that is used to describe this situation. In personal injury cases, subrogation plays a significant role in affecting settlements.

Here’s how subrogation impacts the settlement process:

• Reimbursement for Paid Claims: If your health or auto insurer has covered any part of your medical bills or other expenses resulting from the accident, they have the right to be reimbursed from any settlement you receive.

• Reduction of Net Settlement: The settlement amount you receive might be lessened by the amount your insurer has paid and wishes to recover. This reduces the net settlement amount that ultimately goes into your pocket.

• Legal and Financial Considerations: It’s crucial to understand your insurance policy’s terms on subrogation and consider consulting your attorney. Sometimes your attorney may negotiate with insurance companies to lower the lien, to help you keep more of your settlement.

• Impact on Settlement Decisions: The need to satisfy subrogation claims might also influence decisions on whether to accept a settlement offer. It’s critical to assess whether the settlement will adequately cover the repayment to indemnity providers along with providing for personal needs.