How Much Does a Lawyer Charge for a Car Accident?
So, you decided to talk to a lawyer about the car accident you were involved in. You are in his or her office and you definitely feel that this lawyer can help you. What’s next? The lawyer will ask you to review and sign some forms to get your case moving along. Authorizations are required to assist the lawyer in obtaining your hospital and medical records as well as information from third parties. These are necessary to help prove your bodily injury and property damage claims.
Next, the lawyer will tell you that an attorney-client agreement is necessary in order to proceed and also to define the mutual rights and obligations. You are handed a three-to-ten page document (depending on the law firm) for you to review and sign. Depending on the time, which of course is the lawyer’s stock in trade, he or she will review the agreement paragraph by paragraph with you or will ask you to take it home and call if you have any questions. I prefer the latter as it gives the client the opportunity to review the agreement at home and not feel pressured in a law office. The client may also ask family members or even another lawyer to review the proposed agreement (contract) and explain any questions. Finally, the most important paragraphs in the contract explain the attorney’s fees. Remember, you are hiring a lawyer to represent you in a car accident. This is a contingency fee agreement. In California, a contingency fee agreement allows attorneys to handle car accident cases and wait until the attorney is successful either by way of out-of-court settlement, arbitration award, or jury verdict in obtaining compensation for his or her client.
How much does the lawyer charge? In California, the lawyer will charge a percentage of the compensation obtained. The standard percentage charged is one-third or 33 1/3% of the recovery. This percentage comes right off the top. The language of the contingency agreement will also provide that the one-third only applies to compensation obtained before the filing of a lawsuit. Then there will be a gradual increase in fees if the lawyer has to file a lawsuit. Now the percentage will increase to forty percent (40%). And, if the case goes to trial and/or to appeals, and with further work being required, the fee will graduate to fifty percent (50%).
What about costs incurred during the representation? The contingency fee agreement will contain a paragraph explaining costs incurred in order to assist proving the client’s case. These costs may range from $25.00 to $1,000.00 and are reimbursable to the attorney from the settlement in addition to his fees. Typical costs are incurred when third parties (hospitals, doctors, law enforcement agencies) charge for copies of records relevant to the client’s case. The agreement will give the lawyer authority to incur these costs and recoup them from the client at the conclusion.