Contingency Fees in Personal Injury Cases: What Memphis Clients Need to Know

If you’ve been injured as the result of another party’s negligence, the last thing you want to worry about during your recovery is the cost of hiring an attorney. Personal injury cases aren’t just emotionally taxing – they can be financially devastating. Between medical bills, lost wages, and reduced capacity to work, the financial ramifications of personal injuries can make the prospect of hiring competent legal representation seem particularly daunting.

That’s why personal injury lawyers operate on a contingency fee basis when representing clients. Let’s cover some of the basics of contingency fee agreements and discuss how working with experienced, understanding personal injury attorneys like those at Greer Injury Lawyers can help clients maximize their recovery efforts without further compromising their finances.

What is a contingency fee?

Generally speaking a contingency fee structure is one in which a client is not obligated to pay an attorney’s fee if the client does not win their case. This agreement allows victims of personal injury cases to avoid paying upfront legal costs that might further impede their recovery efforts or add to the existing financial strain caused by their injuries.

Rather than charging clients a flat fee or billing hourly for their services, personal injury lawyers will instead negotiate a certain percentage of a client’s final award amount. This amount may vary from case to case and differ depending on the law firm. The structure helps protect clients by ensuring they don’t suffer an additional financial loss by paying a fixed fee for legal services that don’t result in a case win.

Contingency fee example

Let’s walk through an example of what a contingency fee agreement might look like in a personal injury case:

Let’s say that a client recently suffered a fractured hip as the result of a slip and fall accident on a public sidewalk, but thanks to the hard work of their legal representation, the client receives a $100,000 settlement from the city to cover their economic and non-economic damages.

If this client’s attorney worked with a contingency fee agreement of 33%, the client would be expected to pay their attorney $33,000 out of their settlement earnings. The client may also be asked to reimburse their attorney for any additional case-related costs like filing fees.

However, if the client’s case did not result in a win, they would not be expected to compensate their attorney for their legal services. In some situations, the client may still be asked to cover the cost of certain expenses fronted by the attorney. Overall, however, the fee structure avoids financial barriers an injured person might otherwise face.

Contingency fees in practice

One of the benefits of a contingency fee is that it creates a situation where the attorney and the client should both be motivated to recover as much as possible. Your attorney will benefit from pursuing your case aggressively rather than just trying to resolve it quickly.

The truth is, personal injury victims who hire lawyers are also in a much better position because they are signaling to the insurance company that they mean business. The insurer will be less likely to try to low ball you if they know you have a lawyer working for you who is ready to take your case to court. Just by working with an attorney – especially one with past results of successful claims and verdicts – you’re more likely to get a decent offer. And if you don’t, and the insurer wants to play hardball? Your attorney should be prepared to go all the way to trial if that’s what it takes to get a strong verdict.

What kinds of cases use contingency fee agreements?

Different types of cases may involve different kinds of fee structures. Here are a few examples of the kinds of cases that may be handled by attorneys on a contingency fee basis:

• Car accidents
• Truck and van accidents
• Medical malpractice suits
• Slip and fall accidents
• Wrongful death claims

Under Tennessee law, attorneys’ fees are subject to caps for certain kinds of cases. For example, in workers’ compensation cases, attorneys are not permitted to charge contingency fees of more than 20% of the claimant’s award amount. Similarly, attorneys’ fees in Social Security Disability (SSD or SSDI) claims and Supplemental Security Income (SSI) claims are capped at $9,200. Those types of caps do not currently apply to general personal injury claims.

Learn more about how your personal injury case will be handled

If you are considering filing a personal injury lawsuit in Memphis, Tennessee, or the surrounding areas, the experienced attorneys at Greer Injury Lawyers can help you understand how a contingency fee agreement would work in your case.

Our experienced personal injury lawyers have spent nearly 40 years helping the people of West Tennessee fight for what’s right in personal injury cases, car accident claims, medical malpractice suits, and other areas of law. We understand the far-reaching consequences of personal injury cases and are committed to securing your best possible case outcome.

For more information about our approach to seeking justice in personal injury cases, give us a call or fill out the contact form on our website to schedule a free case consultation with a member of our team. We are standing by to offer you the empathetic and experienced support you need to get back on your feet without breaking the bank.