What Happens if You Lose Your Personal Injury Case?
Personal injury law includes a wide variety of claims. Common personal injury accidents can be car accident injuries, workplace injuries, slip and fall injuries, and medical malpractice. In most personal injury cases, you will negotiate with a lawyer to determine a contingency fee. This means that rather than paying a retainer fee or hourly rate, personal injury lawyer fees are paid based on the outcome of the case.
This mutually benefits you and the lawyer. Without the burden of upfront costs, hiring a lawyer can improve the chances of winning your case. On the other hand, it also befits a lawyer to win the case, as they will earn a percentage of the settlement.
The phrase, “If you don’t win, then we don’t get paid,” and its offshoots have become popularized and almost synonymous with personal injury law. While this statement is true to an extent, it’s important to understand how contingency fees work in your state, what happens if you lose, and what court costs you still might have to cover.
What are Contingency Fees, and What Percentage Does a Personal Injury Lawyer Take?
Personal lawyer fees are determined based on the outcome of a case. Before a lawyer takes on your case, you will sign a written fee agreement. Most fee agreements do not require any upfront payment; rather, it outlines the contingency fee, or what percentage your lawyer will get paid if your case is won.
Contingency fees can be up to 40 percent of your settlement. However, some states have put a limit on the amount of fees a lawyer can collect.
Contingency Fees in Missouri
In Missouri, there is a limit on contingency percentages. The Missouri Supreme Court determined contingency fees cannot exceed one-third (33.33%) of the recovery amount. This decision was determined fair for clients to receive the majority of settlement while attorneys can also be appropriately compensated.
Contingency Fees in Illinois
While the Illinois Supreme Rule states that a lawyer cannot collect an “unreasonable fee” nor recoup an “unreasonable amount for expenses,” there are no set limits on contingency fees in the state. For this reason, it’s strongly recommended that you review your fee agreement, regardless of your residence.
Receiving a Settlement Payment
After you win your settlement or case, it is definitely a cause for celebration, especially when it comes time to collect your settlement or award. There are three types of damages you can receive from your case: economic, non-economic, and punitive. To determine the value of a personal injury claim, an insurance adjuster or jury will consider medical expenses, emotional damages, permanent disability, lost income, and pain and suffering.
The personal injury lawyer fees will be paid out of your settlement or judgment. Depending on how your case is won or settled, there are a few different scenarios to consider.
1 If a case settles out of court, the contingency fee and related court expenses will be paid out of the settlement’s proceeds. You will then be issued a net check at the end of the case.
2 If the case goes to trial and the jury awards money, the attorney’s fee will be paid from that award.
What If I Lose My Case?
In the event that you lose your personal injury case, you might still be responsible for additional court fees. It is standard practice for a lawyer to recoup reasonable expenses per the fee agreement. While a lawyer typically will cover upfront costs and expenses, you should be fully prepared to reimburse court costs no matter the outcome. Examples of court related
• Court and trial expenses
• Expert witness fees
• Record retrieval costs
• Travel expenses
Hiring a personal injury lawyer can improve your chances of winning your case and receiving a higher settlement. However, you should be aware and prepared to cover court expenses in the event of an unfavorable outcome.
Consult Hipskind & McAninch, LLC about your personal injury case
You shouldn’t have to wonder what percentage a personal injury lawyer will take. Before accepting any settlement for a personal injury, you should consult with an honest attorney at our firm. Our 99% success rate is credit to how we treat our clients. Putting their well-being first, we have helped recover millions for our clients and always strive to get the outcome they deserve. No fees, unless we win.
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