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What Is a Contingency Fee Arrangement In Car Wreck Claims?

contingency fee

Most lawyers rely on particular payment arrangements, one of which is the contingency fee. A Charlotte car accident can result in a variety of losses such as personal injury, vehicular damage, and lost wages. As you strive to seek compensation from an at-fault driver, you may find yourself under financial stress. At such a time, hiring a Charlotte car accident lawyer may sound like a bad idea.

Many car crash victims do not hire a lawyer after a crash simply because they think this would cost them money. The good news is that most personal injury law firms take on car crash cases on a contingency fee basis. Here is a look at what this arrangement is and why it is beneficial for you as a crash victim.

What is a Contingency Fee Arrangement?

In regular legal cases, law firms typically charge by the hour or require some upfront payment from the client. This is usually not the case with car crash cases because such cases are accepted on a contingency arrangement.

In a contingency fee arrangement, you are not required to pay any upfront fees. In fact, you are not required to pay any fees at all until your claim meets success. If the claim is successful, you pay a certain percentage of the settlement amount to your lawyer. This percentage is agreed upon by you and your lawyer in writing as per North Carolina State Bar rules.

For most personal injury cases, the contingency fee is anywhere between 20% and 40%. The more simple and straightforward a claim is, the lower is the fee. On the other side, if a case involves significant complications, the fee percentage will be higher.

If the claim is not ultimately successful, you are not required to pay any money whatsoever to the lawyer. So whether or not you pay the legal fees depends on the outcome of the claim.

Flexible Contingency Fee Arrangements

It is possible for you to negotiate a flexible contingency fee arrangement with a lawyer. For instance, instead of a flat percentage of the damages, you and your lawyer can agree on multiple percentages. You may agree to pay 25% if the case settles before trial and a higher percentage if the case goes to trial.

Similarly, variable percentages may become involved on the basis of the expected award. You can agree to pay your lawyer 25% of the first $100,000 received in damages, 20% of the next $100,000 in damages, and so on. In such a way, there are many different ways in which a contingency fee arrangement can be defined.

Benefits of a Contingency Fee Arrangement

A contingency fee arrangement offers numerous benefits to car crash victims. At a time when you may not be able to pay hefty legal fees, such an arrangement helps you get legal help without paying any money upfront. Here are some key benefits of this type of legal arrangement.

Zero Upfront Costs

As noted above, the arrangement incurs zero legal costs to you upfront. So you are able to hire a qualified lawyer and get legal assistance without having to pay any money. This is very advantageous at a time when you may be under a lot of financial burden from the costs of your personal injury treatments and vehicle damage.

No Risk

In a regular legal arrangement, you pay the lawyer by the hour while the outcome of the case is not known. The case may ultimately meet success or failure. If it fails, all the fees you paid would have gone to waste. In a contingency arrangement, the same amount of risk exists.

However, the key difference is that you have not paid any legal fees and you won’t have to pay any if the claim is not successful. So there is very little actual risk in a contingency fee arrangement.

Lawyer Commitment

Your lawyer will get paid only if your claim is successful in this type of an arrangement. This ensures that your lawyer is fully committed to your case and attached to its outcome. The arrangement serves as an extra motivation for a lawyer to do his or her best in order to secure a favorable outcome for your claim.

Hiring a Reliable Charlotte Car Accident Lawyer

When hiring a lawyer for your Charlotte car crash claim, it is important that you choose a reliable and reputable law firm with a proven record of success. Here at Ted Greve & Associates, our lawyers have helped countless crash victims secure compensatory damages after a Charlotte wreck.

Our contingency fee arrangements are highly competitive and flexible, and we make sure we secure the maximum amount of settlement for your crash-related losses. Reach out to us now to discuss your Charlotte crash claim with our lawyers.