If you need to consult with an attorney regarding an injury or death claim arising out of someone's fault or negligence, most attorney's will have you sign a representation agreement that sets out the fee schedule for representation by that attorney. The fee schedule and other deductions that may come out of your recovery may differ from attorney to attorney.
The majority of attorney representation agreements that I have seen for representation in an injury or death claim call for the attorney's fee to be a percentage of the gross recovery. Most attorneys front the case expenses required to develop your case. The attorney hopes to recover the expenses upon resolution of the claim. The attorney is making an educated professional guess when he/she takes your case that the risk of spending the time and money on your claim will be beneficial in the end for both the client and attorney. Every case an attorney takes on is a gamble that there will be a recovery in the end. The vast majority of attorneys are cautious and selective in the cases that they take. Prosecuting a case that has little or no merit is economically and professionally foolish and won't benefit the attorney or client in the end, and could possibly cause a world of problems for both attorney and client.
For example, an attorney charging a 33.33% fee (1/3) would have a fee of $333.33 if the gross recovery was $1000.00. In addition to the attorney's fees taken out of the recovery, case expenses and medical liens may also come out of the client's gross recovery. So for further example, if the gross recovery was $1000.00, and the attorney's fee is 33.33%, the cases expenses were $50.00, and there was a medical lien due back to a health insurance company for $50.00, the client's 66.66% recovery (2/3) would be reduced by the $50.00 for case expenses and the $50.00 for the medical lien. Based on the $1000.00 gross recovery example, the client's recovery of $666.67 would result in a net recovery to the client of $566.67.
Our office has typically had a fee structure of 33.33% (1/3) on personal injury and wrongful death cases. The case expenses and medical liens are deducted from the client's portion of the recovery. Some attorneys will charge a greater percentage if the case results in a lawsuit, goes to trial or is appealed. This may be called an escalating fee. This is important to note if you have a personal injury/wrongful death claim.
If the attorney's fee bumps up when a lawsuit is filed, it sure gives an attorney an incentive to immediately file a lawsuit and increase his/her fee. Some cases indicate an immediate lawsuit is prudent, while many cases may settle without the necessity of litigation.
Most attorneys will make an effort to get the medical liens reduced, which results in a greater recovery for their client in the end. Our office will negotiate with all medical lien holders, hospitals, Medicare, Medicaid, worker's compensation and private health carriers in an effort to increase the recovery you receive.
There have been many changes in Texas laws over the past twenty years, none of which have been favorable to Texans injured as a result of the negligence of others. Recoveries have been limited as a result of the changes in the law.
To help offset the changes made by the Texas Supreme Court and the Texas Legislature that limit recoveries in injury and death claims, we are now taking on new personal injury and wrongful death cases with a fee agreement with our clients of a 25% attorney's fee.
If you choose to retain our office and we elect to represent you in your personal injury/wrongful death claim, our attorney's fees will not exceed 25% of the gross recovery on all new claims. The case expenses and medical liens will be deducted from your portion of the recovery.
Our attorney's fee agreement on new claims will cap the attorney's fee on your case at 25%, even if we file a lawsuit or take your case to trial.
All claims don't result in recoveries, so we are selective and careful on taking on new cases. If you have any questions about contingency fees in personal injury cases, please give us a call.