When it comes to settlement, lawyers use various billing methods, with hourly billing often causing client concerns.
In some cases, attorney fees equal or exceed settlements, resulting in no client gain.
Thus, researching personal injury lawyers’ billing practices and charges is crucial before committing to one, as fees may be higher than expected.
How Lawyers Charge Their Clients
To grasp lawyers’ earnings from settlements, understand their billing methods.
Here’s an overview of these methods and how they function:
Billable Hours
Hourly billing by attorneys involves tracking their time, often charging several hundred dollars per hour.
This can lead to substantial bills, especially for clients with limited budgets.
Lawyers in large firms typically use hourly billing, catering to clients with significant resources.
Recognizing that many individuals can’t afford high hourly fees even after winning their case, lawyers offer a better alternative: contingency fee billing.
Contingency Billing
Contingency billing ties lawyer fees to case success.
Typically, clients pay nothing during the case, but lawyers track hours and expenses to bill once the case is won.
Alternatively, lawyers may charge a percentage of the settlement fee, typically around 33-40%, which may seem high but reflects the lawyer’s risk; they won’t be paid if the case is lost.
State Laws on Attorney’s Fees
In some states, there are limits on attorney fees as a percentage of settlements, with tiers based on settlement amounts.
The more money won, the higher the contingency fees.
Several factors impact lawyers’ take-home pay in settlement cases.
As a client, weigh your options carefully and trust your instincts when choosing the right approach for your situation.