Wayne Cohen, lawyer, attorney: How Does A Contingency Fee Work?

Wayne Cohen, lawyer, attorney:  How Does A Contingency Fee Work?


Many states have different rules and regulations regarding contingency fees. For purposes of this blog entry, I’ll speak to generally what occurs in the District of Columbia since I am a personal injury attorney in Washington, DC.   Contingency fees are often used in personal injury cases, and some other types of litigation disputes.  The overall structure of the fee is that the personal injury lawyer is paid a percentage of the recover.  If the lawyer wins the case on behalf of the client, then the lawyer is able to recover a fee.  On the other hand, if the lawyer does not win the case, then there is no fee.  Expenses are usually handled differently, with the client often being responsible for the personal injury attorney’s expenses regardless of what occurs with the fee. 

Contingency fees have pros and cons.  First, let me start with the pros.  The biggest advantage of a contingency fee is that it puts the lawyer and the client in the same situation.  For example, if the case pertains to an automobile accident, and the personal injury lawyer is working on a contingency basis, then the lawyer will not receive a fee unless the client wins the case.  The lawyer has an additional incentive to win the case because the greater the recovery, the bigger the fee. Another advantage is if the client loses the case, there are no fees that are owed to the lawyer.  This places a great amount of risk on the case upon the lawyer.

Now let me go into the cons.  One con of a contingency fee is that they rarely can be used if the client is a defendant in a case.  A defendant means that the client is being sued.  In this case the contingency arrangement is generally one that will not be accepted by a lawyer.

Contingency fees in injury cases usually range between 33 1/3%  and 40%.  Many top personal injury attorneys charge 33 1/3 % of the recovery if the matter does not proceed to litigation, and 40% of the fee if the matter proceeds to litigation.

Wayne Cohen
1220 19th Street, NW
Suite 510
Washington, DC 20036
202-955-4529
www.cohenandcohen.net

How To Select A Personal Injury Lawyer - Washington D.C.

By: Personal Injury Lawyer Wayne Cohen, Cohen & Cohen

If you are in need of a personal injury lawyer, then it is important for you place a lot of effort into making sure you hire the right lawyer.  Here are 5 tips that may be of help to you when looking for a personal injury lawyer.

First, make sure that the lawyer or law firm is licensed in the state where the case occurred. For example, if you are involved in a car accident lawyer in the District of Columbia, but you live in Michigan, it would be prudent to retain counsel in Washington, D.C. and not Michigan.  The D.C. personal injury lawyer may have a better chance of getting you a good result.

Second, ask questions to determine the lawyer's past performance.  Has the lawyer handled this type of injury case before?  What is the lawyer's track record?  What is the lawyer's philosophy on handling this type of case?

Third, what is the lawyer's education background.  For example, did the lawyer attend an accredited law school?  While at law school, was the lawyer a member of the law review? These questions can help give you some background on the lawyer.

Fourth, has the lawyer ever been interviewed by the media?  Quite often, skilled lawyers will be interviewed by various members of the press who may recognize the lawyer as an "expert" in a particular field.

Fifth, determine the lawyer's policies and procedures for staying in contact with you during the case.  Will the lawyer accept emails from you?  How often will you be discussing the case with the lawyer?

Ultimately, no one factor makes a good lawyer.  But together in aggregate, finding the answers to these questions can help you make a smart decision when hiring a personal injury lawyer or a lawyer in a another specialty.