Car Accidents in Shreveport, LA: What Is a Contingency Fee Arrangement?
In common everyday understanding, for a Louisiana car accident case, a "contingency fee" means "no attorney fee unless we win." More precisely, a "contingency fee arrangement" is one of several possible payment arrangements when hiring a lawyer to handle your case. Louisiana attorneys can charge in several ways:
By the hour
Charge a flat fee for a set of defined legal services
Charge a contingency fee or
Charge some sort of hybrid combination of the above
With Shreveport, Louisiana, auto accident cases, most attorneys handle those cases with a contingency fee arrangement. As noted, this means there are no attorney's fees paid by the client until and unless there is a recovery in the case. If there is a recovery, then the attorney's fee is paid from the recovery, usually as a percentage of the total amount recovered. This is the meaning of the word "contingency." Any attorney's fees due for handling the case are contingent upon a settlement or court victory in the case.
The typical fee is one-third of the settlement/recovery after expenses are deducted (such as filing fees, deposition fees, etc.). Often, there is a higher percentage if there is an appeal in the case handled by the attorney.
Are contingency fee arrangements legal in Louisiana?
Yes, contingency fee arrangements are allowed and legal under the laws of the State of Louisiana. See La. Rules Prof'l. Conduct, Rule 1.5. Contingency fee arrangements are specifically permitted in all cases except divorce and criminal cases. The Ethical Rules require the following for a contingency fee arrangement:
The agreement must be in writing and signed by the client.
The client must be given a copy.
The agreement must state the percentage or percentages that are to be paid as attorney's fees in the event of settlement, trial, or appeal.
If expenses are deducted, the agreement must state what expenses are to be deducted from the recovery and whether such expenses are to be deducted before or after the contingent fee is calculated.
When the matter is finished, the lawyer must provide the client with a written statement detailing the recovery, expenses, attorney's fees, and remittance to the client, including calculations.
Why contingency fee arrangements benefit both the Louisiana auto accident lawyers and clients
Contingency fee arrangements have many advantages for both clients and lawyers. Clients see an obvious advantage in that there are no up-front costs or fees to be paid. This allows clients to hire lawyers when they might not be able to otherwise. Something similar is true with respect to litigation costs and expenses. Louisiana car accident cases can be expensive if expert witnesses must be hired and if there are a lot of depositions to take. Often, clients cannot afford to pay these expenses upfront, and contingency fee arrangements allow clients to avoid paying these expenses until there is a recovery.
Contingency fee arrangements also benefit lawyers. In general, more clients are available if attorneys are able to wait for fee recovery until the case settles or there is a victory in litigation. Likewise, depending on the complexity and length of the case, the attorney's fee might be higher than if the case was charged on an hourly fee basis. Of course, the opposite could also be true.
Contact A Louisiana Personal Injury Attorney Today
For more information, contact the Law Offices of Philip B. Adams; if you have been injured in a Louisiana accident, our Louisiana personal injury lawyers can help you recover the full compensation you are entitled to according to Louisiana law. To contact us, complete our "Contact Us" page here. You may significantly benefit by having an attorney with legal competence and experience assist you with your Louisiana personal injury case. We have offices in Shreveport and handle personal injury cases throughout all of Louisiana. Thank you for reading this blog post and visiting our website.