What Little Rock Clients Need to Know About Contingency Fees

If you’ve been injured due to someone else’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 also have life-altering financial ramifications. Between medical bills, lost income and reduced capacity to work, the financial fallout of a serious injury could make just about any client bristle at the thought of shelling out more money for attorney fees.

Fortunately, legal fees shouldn’t be a concern because personal injury attorneys use a contingency fee arrangement. A contingency fee minimizes the upfront financial burden of working with legal representation while helping them secure a more favorable case outcome. Let’s explore how contingency fee agreements work and how law firms like Greer Injury Lawyers use this fee structure to help them deliver effective support to clients in Little Rock and the surrounding areas.

What is a contingency fee?

Under a contingency fee agreement, a client doesn’t pay attorneys’ fees unless their case results in a win. Instead of charging upfront flat rates or ongoing hourly fees, attorneys in contingency-based cases only receive compensation in the form of a pre-negotiated percentage of their client’s final award amount. If the client does not win their case, however, the attorney is not entitled to any fee apart from reimbursement of certain expenses fronted by the attorney or their firm.

Contingency fees may depend on the complexity of the case, the stage at which representation was secured, and the amount of time it takes for the case to be resolved. By absolving clients of the burden of upfront legal expenses, contingency fee arrangements make it easier for clients to focus on their recovery efforts without adding to the financial strain caused by their injuries. This fee structure also motivates attorneys to secure the best possible outcome for their clients, as their fee amount directly depends on the client’s final award.

Contingency fee example

Here’s a quick example of how a contingency fee arrangement might look in a Little Rock personal injury case:

Let’s say a client suffers a traumatic brain injury following a slip and fall accident in a local grocery store. If an attorney helps the client secure a settlement of $100,000 and has a 33% contingency fee agreement in place, the attorney would receive $33,000 of that $100,000 award.

If the case does not result in a financial award or settlement, the client is typically not expected to pay any fees to their attorney. Clients may still be obligated to reimburse their attorney for some fronted costs, however, so it is important for clients to have a clear understanding of the specifics of their agreement.

What kinds of cases use contingency fee agreements?

Contingency fees can be used in a variety of cases, but they are especially common in personal injury cases related to:

• Car accidents
• Truck, van, and commercial vehicle crashes
• Medical malpractice
• Slip and fall accidents
• Wrongful death cases

Under Arkansas law, some case types have fee limits in place that may affect whether contingency arrangements are allowed or practical. For example, the State of Arkansas sets forth very specific guidelines for determining attorneys’ fees in workers’ compensation cases. Generally, contingency fees are capped at 25% of the claimant’s indemnity benefits in these cases, and all attorneys’ fees must be explicitly approved by the Workers’ Compensation Commission to be considered valid.

Similarly, attorneys’ fees in Social Security Disability cases are federally capped at $9,200. An experienced lawyer can help clients understand how a fee arrangement might apply in their case.

Have questions about contingency fees?

Contingency fees are often a win-win for clients and their attorneys. Lawyers are motivated to fight for the best possible case outcome and clients are not expected to foot the bill for legal services that might not yield sufficient financial gains.

At Greer Injury Lawyers, our team takes pride in offering contingency-based representation to clients throughout Little Rock and the surrounding Arkansas communities. We understand the physical, emotional, and financial toll a personal injury can take and believe that quality legal advocacy should never be out of reach due to financial strain.

If you’re thinking about filing a personal injury lawsuit in Little Rock, North Little Rock, Benton, or beyond, our experienced team at Greer Injury Lawyers is here to help. With nearly 40 years of experience fighting for injured clients across the Mid-South, we’ve built a reputation for empathetic service and life-changing case outcomes. Our contingency fee approach means you can pursue the compensation you deserve without compounding the financial strain caused by your injuries.

Give us a call today or fill out our contact form to schedule a free 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.