If I Lose My Injury Claim Do I Have To Pay Any Money?
We often encounter clients concerned about the financial implications of pursuing a personal injury claim. One of the most common questions we hear is, “If I lose my case, do I have to pay any money?” This concern is entirely understandable, especially when you’re dealing with the aftermath of an injury and facing potential medical bills, lost wages, and other expenses. It’s critical to understand the financial aspects of hiring a personal injury lawyer and how our firm handles cases on a contingency fee basis.
Understanding Contingency Fee Agreements
At Cohen & Winters, we almost always operate on a contingency fee basis for personal injury cases. This means that our payment is contingent upon winning your case. Simply put, if we don’t win or settle your case, you don’t owe us any attorney fees. This arrangement allows clients to pursue justice without the burden of upfront legal costs, making legal representation accessible to everyone, regardless of financial status. While we offer the client an option to pay an hourly retainer and fee instead, almost all personal injury clients prefer the contingency. The contingency fees avoids the need to pay any money upfront, and avoids the risk of losing money in the event the case does not pay off as hoped.
The No Win, No Fee Promise
Our “no win, no fee” promise means that you can focus on your recovery and getting your life back on track without the stress of worrying about paying legal fees if the outcome isn’t in your favor. We believe that everyone deserves quality legal representation, and this approach ensures that you can seek justice without financial risk. Our interests are aligned with yours: we only get paid if you receive compensation.
What Are Attorney Fees?
Attorney fees are the payments made to a lawyer for their services. In a personal injury case, these fees are usually a percentage of the settlement or judgment amount awarded to you. The standard contingency fee percentage can vary, but it typically ranges between 33 1/3% to 40% of the recovered amount. This fee covers the attorney’s time, effort, and expertise in handling your case, from the initial consultation through settlement negotiations or trial.
What About Costs and Expenses?
While the attorney fee is contingent upon winning the case, there are other costs and expenses associated with pursuing a personal injury claim. These costs may include filing fees, court costs, expenses for obtaining medical records, fees for expert witnesses, and costs related to depositions and other discovery processes. At Cohen & Winters, we typically advance these costs on behalf of our clients.
If we win your case, these costs are deducted from the final settlement or judgment amount, in addition to the attorney fee. If we don’t win, you generally do not have to repay these costs, as they are considered part of the contingency arrangement. However, it’s important to review your specific agreement with our firm, as the terms regarding costs and expenses can vary.
Important: You May be Assessed Costs of the Other Party
While Cohen & Winters generally does not attempt to collect advanced expenses in the event of no recovery, there is a rule of court in New Hampshire that says the losing party can be assessed the costs of the opposing party. While this does not include attorney’s fees of the opposing party, it includes other costs such as expert witnesses, transcripts, and filing fees. These can be quite substantial, especially when expert witnesses are used. In the event of a loss, Cohen & Winters may be able to negotiate a post-verdict settlement that avoids these costs. However, they are a risk that the client must be made aware of before a lawsuit is brought.
Whether the “losing party” has to pay attorney’s fee or costs varies quite a bit by jurisdiction, and even type of case. While the information contained in this article is specific to New Hampshire state court personal injury claims, there are likely different rules and practices if you are in a different state, or have have a different type of claim. The rules are also different in federal court. Make sure to consult with an attorney licensed in the proper jurisdiction.
Why Do Law Firms Use Contingency Fee Arrangements?
Contingency fee arrangements offer several benefits to clients and law firms alike. For clients, the most significant advantage is the ability to access legal representation without the need to pay upfront fees. This arrangement is particularly beneficial for individuals who may be facing financial difficulties due to their injury.
For law firms, contingency fees align the interests of the attorney and the client. Since the attorney’s fee depends on winning the case, the attorney is motivated to work diligently and efficiently to secure the best possible outcome. It also encourages attorneys to take on cases they believe have merit, as they are taking on the financial risk alongside their clients.
Transparency and Communication
At Cohen & Winters, we prioritize transparency and clear communication with our clients. From the initial consultation, we discuss the contingency fee arrangement and any potential costs that may arise during the course of the case. We provide a detailed agreement outlining the terms of our representation, including the percentage of the contingency fee and how costs will be handled.
We believe that informed clients make the best decisions, so we encourage you to ask questions and seek clarification on any aspects of the fee agreement that you don’t understand. Our goal is to ensure that you feel confident and informed throughout the legal process.
The Importance of Case Evaluation
It’s important to note that not all personal injury cases are straightforward. The potential recovery amount can vary based on factors such as the severity of your injuries, the clarity of liability, and the insurance policies involved. During our initial consultation, we evaluate the merits of your case and provide an honest assessment of its strengths and weaknesses.
This evaluation helps us determine whether we can take your case on a contingency basis. If we believe your case has a strong chance of success, we will proceed with the contingency fee arrangement. If, however, the case has significant challenges, we may discuss other payment arrangements or advise you on alternative legal options.
Navigating the legal system can be daunting, especially when you’re dealing with the aftermath of an injury. At Cohen & Winters, our goal is to make the process as straightforward and stress-free as possible. Our contingency fee arrangement ensures that you can pursue your case without the worry of upfront legal costs, and our commitment to transparency means you’ll always know where you stand.
If you’ve been injured and are considering legal action, we encourage you to contact us for a free consultation. We’ll review your case, explain the contingency fee arrangement in detail, and help you understand your options. Remember, if we don’t win your case, you don’t owe us any attorney fees. Let us help you seek the justice and compensation you deserve, without financial risk.
If I Lose My Injury Claim Do I Have To Pay Any Money?