What Is a Fee Agreement?
A fee agreement is a written contract between a client and their attorney outlining the terms of payment for legal services. In personal injury cases, most attorneys work on a contingency fee basis, meaning they are paid a percentage of the compensation only if the case is successful.
Types of Fee Agreements in Personal Injury Law
- Contingency Fee: Attorney fees are contingent on winning the case, usually ranging from 25% to 40% of the settlement or verdict.
- Hourly Fee: Rare in personal injury cases, the client pays for each hour the attorney works on the case.
- Flat Fee: A fixed amount paid upfront, typically used for straightforward legal tasks.
Importance of Fee Agreements
- Transparency: Ensures clients understand the costs of legal representation upfront.
- Accessibility: Contingency fees make legal services affordable for clients unable to pay upfront.
- Legal Protections: Outlines responsibilities and avoids disputes over payment.
A clear fee agreement fosters trust between clients and attorneys while ensuring fair compensation for legal services.
