How Differences in Personal Injury Fee Agreements Impact Your Pocket !

Most people assume attorney fee agreements are basically all the same.

They’re not. They are very much not !

A "fee agreement" is the contract that controls the relationship between an injured party and the personal injury attorney here she hires.

Most personal injury lawyers are paid a percentage of any money recovered on behalf of the injured person. The payment is pretty much always contingent - the attorney only gets paid get paid if they recover money for you.

That’s the part most people know.

Here's what too many people don't know: even where two fee agreements use the same percentage determine the attorney's fee, the amount of money that actually gets to injured party can be significantly different based on other terms in the agreement.

The percentage matters. But it isn’t the only thing that matters.

That’s why comparing and understanding the differences among fee agreements is critical to getting the best result and making an informed choice among Personal Injury Attorneys.

Many people schedule multiple free initial consultations with different attorneys to learn about the different approaches they take and how those difference may impact their results.

You should too !

It’s More Than a Single Number

Imagine you’re comparing two attorneys. Both agreements prominently propose a one-third contingency fee. Then you start reading the details.

One agreement increases the fee if a lawsuit has to be filed. Another increases it again if the matter goes to trial. One deducts expenses before calculating the attorney’s fee from the funds received. Another deducts expenses afterward. One attorney agrees to negotiate medical liens as part of the representation. Another may treat that as a separate service requiring additional fees.

Suddenly, two “one-third” agreements don’t look nearly as similar.

Treatment of Expenses Can Make a Real Difference

Personal injury claims involve expenses in addition to attorney fees.

Most personal injury attorneys agree to pays expenses on behalf of the client as they are incurred. These expenses can include medical records, filing fees, expert witness fees and deposition. While the agreement between the client and the attorney controls, the usual agreement is that the attorney is entitled to reimbursement of those expenses from the funds recovered for the client.

The important question isn’t whether those expenses exist. It’s how they’re handled.

Questions worth asking include:

• Who advances the expenses?

• If the claim isn’t successful, who is responsible for repaying them?

• Are expenses deducted before or after the contingency fee is calculated?

• Are there any categories of expenses that require your advance approval?

Those details can affect your financial outcome just as much as a small difference in the contingency percentage.

When Does the Fee Change?

Many fee agreements contain different percentages depending on how far the claim progresses.

For example, the fee might be 33% if the claim settles before a lawsuit is filed, 35% if litigation becomes necessary, and another percentage if the matter proceeds through trial or appeal. This means you should understand if the percentage you will be required to pay your attorney if he or she is successful changes at any point in the process and exactly what events trigger them.

Services Included…and Services That Aren’t

Fee agreements cover different services. Some include more services than others. It is important to understand which services are and are not covered so that you can do an "apples to apples" comparison between fee requirements.

Some attorneys include negotiating money owed for medical treatment as part of the representation. Others may handle those issues differently.

Some agreements cover appeals. Others don’t.

The point is to recognize that differences exist, and they’re worth understanding before you finalize your choice of personal injury attorney.

Assume Every Provision Is Negotiable

You are entitled to do all that you can to maximize the portion of the money recovered on your behalf that winds up in your pocket.

Negotiate.

The claim is YOURs. It has value. Just as your injuries have a real world impact on your life … so does the amount you recover as compensation for them.

Negotiate

For the overwhelming majority of injured people the fee to their personal injury attorney will be the largest payment for services that person makes in their lifetime.

Start from the perspective that you serve your self best by assuming every provision is negotiable and using that information to your advantage. Be the squeaky wheel.

Compare Agreements Side by Side

You should very seriously consider meeting with multiple personal injury attorneys. The industry is build around the "free initial consultation". The lawyers mean it. Take advantage of that opportunity to meet with multiple attorney so you can evaluate the fit between you and them AND so you can compare multiple fee agreements side by side.

Look fee agreements them line by line.

Ask yourself:

• Are the contingency percentages the same at every stage?

• How are litigation expenses handled?

• Who has to pay the expenses if the claim is unsuccessful?

• What additional services are included? What addition services do I have to pay for?

• Are there provisions you don’t fully understand?

These questions often reveal differences that aren’t obvious during an initial consultation.

The Bottom Line

Choosing an attorney is an important decision, but so is understanding the agreement that defines your relationship with that attorney.

Most people will sign only one attorney fee agreement in their lifetime. There’s no reason to rush through it or assume they’re all alike.

Read it carefully.

Ask questions.

Compare it with other agreements if you’re considering more than one attorney.

The goal isn’t simply to find the attorney who will represent you for the lowest percentage. It’s to understand the complete agreement and decide which one best serves your interests.

Small differences on paper can become huge differences later. Taking the time to understand them before you sign is one of the smartest things you can do.

General information—not legal advice. Paul’s Guide is not a law firm. This article provides general educational information and may not address every fact, exception, jurisdiction, or change in the law. Legal rights and deadlines vary based on the circumstances and applicable law. Reading this article, by itself, does not create an attorney-client relationship with Paul’s Guide or Paul Zimmerman. For advice about a specific claim, promptly consult a lawyer licensed in the appropriate jurisdiction.