How Does Contingency Work in an Injury Case?
Although attorneys often require a cost deposit or retainer before agreeing to take on a case, there is a contingency process often utilized for cases involving personal injury in Fort Lauderdale and elsewhere in Broward County, Florida.
Key terms
- Arbitrators: A panel of people or groups on both the defense and prosecuting side that present their opinions and ideas to a third person or group to resolve a case
- Cost deposit: Additional money used that would exceed the original deposit for court costs
- Overhead: A combination of the costs for equipment, library maintenance, rent, salaries, etc. (usually 35 to 50 percent of the total lawyer costs)
- Trust account: A business account where a retainer or a cost deposit from clients' funds are stored
Determining fees in an accident case
According to the Rules of Professional Conduct, here are common fees that a client must pay:- 15 percent for recovery costs of more than $2 million: If the defendant admits wrongdoing but disagrees with the amount for damages
- 20 percent for recovery costs between $1 million and $2 million: If the defendant admits wrongdoing but disagrees with the amount for damages
- 20 percent for recovery costs of more than $2 million: If the client and attorney settle the case, or win this recovery amount, at trial
- 30 percent for recovery costs between $1 million and $2 million: If the client and lawyer settle the case, or win this recovery amount, at trial
- 33 1/3 percent for up to $1 million: If a case is settled before the filing of an answer or demand for appointment of arbitrators by the time the initial time period expires
- 33 1/3 percent for up to $1 million: If no answer is filed or no demand for appointment of arbitrators is made by the time the initial time period expires
- 33 1/3 percent for up to $1 million: If the defendant admits wrongdoing but disagrees with the amount for damages
- 40 percent for up to $1 million: If the case ends after the filing of an answer or demand for appointment of arbitrators, by the entry of judgment
- 40 percent for up to $1 million: If no answer is filed or no demand for appointment of arbitrators is made, by the entry of judgment