When considering whether to hire a lawyer for a personal injury claim, victims may have some preconceived information regarding what that implies for their potential compensation and whether working with a lawyer will potentially have an exorbitant fee. Many victims are unaware of how contingency fees work and that most personal injury lawyers work on this basis. This means that when working with a personal injury lawyer, you may not have to cover your lawyer’s fees until they have recouped compensation on your behalf for your accident.
When considering a New Mexico personal injury lawyer, it is essential to understand that working on a contingency fee basis allows your lawyer to fight ardently on your behalf so that you may recoup compensation for your lost wages, medical bills, property damage, and suffering. It is best to speak with an experienced lawyer during your free, complimentary consultation of your case for more information regarding their contingency fees.
What Is a Contingency Fee?
A contingency fee is an arrangement made that affirms that you only have to pay your attorney’s fee if they are successful in resolving your case through settlements or verdicts. When the compensation is awarded to you, your payment will come out of that sum. This creates a risk-free exchange for diligent representation and financial relief for you following your accident.
The fee amount is usually a fixed percentage of the compensation recovered which is agreed upon before your lawyer takes on your case. If the lawyer fails to successfully recover compensation for your accident, neither you nor your lawyer will receive any payment.
Contingency fee arrangements allow for victims that may not be financially stable because of their accident to have access to the civil justice system to seek compensation for their losses. Your attorney will offer effective representation based on the agreement you enter for future payments based on the sum of compensation you are awarded. This enables attorneys to build a successful case for the best possible outcome for their clients.
How Do Contingency Fees Work?
When you begin a contingency fee agreement with your lawyer, your lawyer will cover costs associated with building your claim. These fees may include:
- Court filing fees
- Expert witness depositions
- Medical record copies or reports
When your lawyer is successful in recovering compensation for your losses through a verdict or settlement, your written contract will determine how your compensation is delegated between you and your attorney. In some arrangements, the lawyer’s fee is based on a ranging percentage depending on factors such as the timeline and method your case was resolved. For example, if your case ends up going to trial, it may be that the lawyer receives a higher percentage of your award because of the time and effort it takes in comparison to a quick settlement.
What Is an Example of a Contingency Fee Agreement?
Contingency fee agreements are “contingent” upon your lawyer earning a settlement or verdict on your behalf. Your attorney will likely incur expenses or costs in the successful development of your case. When the case resolves, the attorney gets the costs reimbursed, along with the agreed upon contingency fee percentage. Please keep in mind that the State of New Mexico, and other states, charge a gross receipts or similar tax on the services performed. Usually those are the client’s responsibility as well, like when you engage a plumber or other service worker. However, the tax is not charged on the full settlement or verdict amount, only on the amount of the contingency fee.
For example, if your lawyer earned a verdict in the amount of $100,000 and you negotiated a 35% contingency fee, your lawyer would receive $35,000. If your lawyer also incurred $5,000 in case costs, that would also be reimbursed to your lawyer. You would receive $60,000 minus the amount of tax on the attorney fees.
Speak with a New Mexico Personal Injury Lawyer for a Free Consultation
When you have experienced a terrible accident that led to injuries, lost wages, property damage, and other losses, it may be overwhelming to seek compensation while juggling recovery. Speak with a New Mexico personal injury lawyer at Dominguez Law for compassionate and ardent representation. We fight for your rights and understand the importance of holding negligent parties accountable for their careless actions.
The legal team at Dominguez Law understands the financial and physical toll an accident may take on a victim; that is why we offer award-winning representation on a contingency fee basis. We will work diligently and effectively to help win you the maximum compensation you deserve so you can focus on recovering from your accident. Call us at (505) 317-9837 for a complimentary, free consultation or fill out our contact form for more information. We also speak Spanish.