How Contingency Fees Work In Personal Injury Cases In Hickory, NC

Contingency fees in personal injury cases

You have been injured in a car accident or motorcycle accident in Hickory, North Carolina, and have hired a lawyer to represent you. One common question is, what will the lawyer’s fee be, and who pays for it? 

The Law Offices of Jason E. Taylor, P.C., like most plaintiff personal injury firms, handles cases on a contingency fee basis. This means that you are not charged anything upfront. Your lawyer only gets paid if they can recover money for you, either via settlement, judgment, or verdict.

What is a Contingency Fee Agreement?

A contingency fee agreement establishes the percentage of fees the lawyer will subtract from your case’s gross settlement or verdict proceeds. You should always ensure you understand the contingency fee agreement before signing any agreement. Also, remember to retain a copy for your records.

How Much is a Contingency Fee?

The amount of a contingency fee depends on several factors. Most lawyers will charge a 1/3 (or 33 1/3%) contingency fee if the case is settled before filing a lawsuit. This contingency fee usually increases to 40% once a lawsuit has been filed. 

Who Pays the Contingency Fee?

A contingency fee is paid out of a personal injury case’s settlement, judgment, or verdict proceeds. For example, if you were injured in a car crash that occurred in Hickory, North Carolina, at the intersection of 2nd Street NE and 13th Avenue NE near the Dunkin Donuts, if the case settles out of court, your lawyer’s contingency fee would be paid out of the settlement proceeds. You would then be issued a check for the remaining funds after the contingency fee is paid and any case expenses were reimbursed. The contingency fee would be paid out of the total jury verdict amount if your case went to trial.

When is the Contingency Fee Paid?

The contingency fee is paid out of the case proceeds once the case is settled or after a trial. In a contingency fee agreement, you do not pay any fees upfront.

What is a Settlement Memorandum?

At the end of your case, your lawyer should prepare something called a Settlement Memorandum before disbursing funds. This Settlement Memorandum shows the total settlement amount at the top and should itemize all deductions. Deductions include the lawyer’s contingency fee, case expenses, unpaid medical bills, and liens. Your net proceeds will be listed at the bottom of the Settlement Memorandum.

If you have questions about contingency fee agreements for your personal injury case or car accident case in Hickory, NC, please do not hesitate to contact The Law Offices of Jason E. Taylor, P.C. Our experienced Hickory car accident attorneys are here to assist you.

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