If you find yourself needing to hire a personal injury lawyer in Albuquerque, New Mexico, you will come across attorneys who offer their services and legal representation on a “contingency fee basis.” This common payment structure means the client will not have to pay anything unless the case results in a successful settlement or judgment award.
Contingency fees protect the client from absorbing any financial risks associated with pursuing a case. It is the most desirable payment arrangement if you wish to benefit from an attorney’s advocacy without paying the attorney out of pocket.
What Does It Mean to Work On a “Contingency Fee Basis”?
When a car accident, slip and fall, or another type of personal injury attorney advertises “contingent fees” or “working on a contingency fee basis,” it means there will be no cost to hire the lawyer unless he or she wins the case and collects financial compensation on the client’s behalf.
Here are the basic elements of a contingency fee structure:
- No upfront costs. You will pay $0 upfront to enlist the personal injury attorney’s services. There are no retainer fees, which is an upfront cost required by other types of attorneys to initiate professional legal services.
- No fee if the case does not result in compensation. You will only pay your lawyer if your case leads to financial compensation for your losses, such as your medical bills and property repairs. Otherwise, you will pay the attorney nothing for services already rendered.
- Fee charged as a percentage. If the attorney does win your case, you will be charged the fee as a percentage of the amount won. This is a pre-agreed-upon amount. If you win $100,000, for example, and the contingency fee is 33.33 percent, the attorney’s fee would equal $33,330. This would be automatically deducted from the $100,000, providing you with a recovery of $66,670.
Contingency fees are common in personal injury, wrongful death and medical malpractice claims, as well as larger suits such as class actions and mass torts. In certain types of cases – such as criminal law – contingency fees are not permitted.
How Much Is the Average Contingency Fee?
On average, a personal injury lawyer’s contingency fee is around one-third (33.33 percent) of the settlement or verdict won. However, it can range anywhere from 25 percent to 40 percent or more, depending on the law firm and the case.
The percentage assessed as an attorney’s contingency fee depends on the case and the lawyer. A highly experienced attorney with years in the business and an exceptional track record may charge more than one with less experience.
The complexity of the case also alters the amount charged in a contingency fee arrangement; a more complicated case that has to go to trial, for example, may cost more in attorney’s fees than one that reaches a quick settlement.
How to Hire an Attorney on Contingency Fees
When searching for the right lawyer to hire for your case in New Mexico, be sure to ask how the lawyer charges. Look for one that offers representation on a contingency fee basis to take advantage of this payment setup. Ask exactly how much your contingency fee will be ahead of time to avoid any surprises later.
The law requires contingency fee agreements to be made in writing. As the client, you must sign your name on this paperwork, which must clearly note any expenses you will encounter throughout your case.
You must also factor in the potential for other types of fees that are separate from attorney’s fees. This may include court costs, filing fees, administrative costs, expert witness fees and investigative costs. These fees may be charged to you directly or deducted from your settlement or judgment award.
What Are the Benefits of Contingency Fees?
Contingency fees have numerous benefits for clients who need legal representation for personal injury matters. They improve access to high-quality advocacy for clients who could not otherwise afford to hire attorneys – a common occurrence while clients are simultaneously dealing with expensive medical bills and other accident-related costs.
Since the client won’t have to pay if the case doesn’t succeed, the risk of losing is placed on the attorney. This motivates the lawyer to obtain as much money as possible on the client’s behalf, since the amount the attorney gets paid depends on the settlement or verdict obtained. Attorneys working on contingency are more determined to achieve client success.
Other Attorney Fee Structures in New Mexico
Contingency fees are not the only possibility in terms of personal injury attorney payment structure. Attorneys in New Mexico may also charge an hourly rate or flat fee. With an hourly rate, you will be billed per hour of time that the attorney spends working on your case. The amount will vary based on the attorney’s experience and case type, but can range from $100 to $500 or more per hour.
With a flat fee, a lawyer will charge a single, one-time amount for his or her work on the case. This is more common in family and business law than personal injury law. A flat fee can vary widely depending on the type of service or case, from $500 to $2,000 or more. Some lawyers may also charge a retainer, which is an advanced deposit that is required before the attorney will provide counsel.
Make Sure You Know How Much an Attorney Charges
It is critical to have a clear understanding of how much a personal injury lawyer charges before you assign paperwork to retain the lawyer. Don’t be afraid to ask about fee structures upfront, during the free consultation about your case. Be sure to ask if the fee will increase throughout your case and if there will be any additional expenses.
Your contingency fee arrangement should be put in writing and signed by you only after you fully understand the terms and conditions. If a prospective attorney in New Mexico is giving you vague or unclear information about how he or she gets paid, look elsewhere for representation. At The Fine Law Firm, we pride ourselves on keeping fees affordable, transparent and not burdening clients with unnecessary costs. Our contingency fees are never more than one-third or 33.33 percent. We also offer discounts for active duty military members, first responders and cases involving injured children.