After a personal injury that results in unexpected medical bills and lost income, you might be worried about whether you can afford to hire a lawyer to pursue compensation for the damages you’ve sustained. However, most personal injury lawyers in San Diego work on a contingency fee, allowing you to secure legal representation and pay for it later. Here is what you need to know about the costs associated with hiring a San Diego personal injury lawyer.
The Different Types of Legal Fee Structures
Lawyers may use various fee structures when charging clients, including:
- Hourly: The most straightforward fee arrangement is hourly, in which you pay a set hourly rate for the time the attorney works on your case. For example, if the lawyer charges $250/hour and works on your case for 20 hours, you would owe them $5,000. Hourly fees are more common in criminal and contract cases.
- Flat fee: A flat fee occurs when a lawyer charges a set amount for legal services regardless of how much time they spend on the case. For example, they may charge $1,000 to prepare estate planning documents or contracts.
- Retainer: With a retainer, you have to pay a large upfront sum for legal services. As your attorney works, they charge their services against this deposit. After the retainer is exhausted, they may bill for services.
- Contingency fee: A contingency fee is a fee conditioned on a case’s outcome. If the attorney does not secure this outcome, the client does not owe for their legal services.
Most personal injury lawyers in San Diego County work on a contingency fee basis, but some don’t. Be sure to ask about your lawyer’s fee structure before signing a retainer agreement.
How Legal Fees Are Determined
Lawyers are bound by ethical rules that dictate how they provide legal services. The rule regarding attorney fees is that lawyers cannot charge an illegal or unconscionable fee. The cost of legal fees can be based on various factors, including:
- The amount of the fee in proportion to the value of the services performed
- The novelty and difficulty of the questions involved in the case
- The skill required to properly perform legal services
- The likelihood that taking the case will prevent the lawyer from taking other cases
- The lawyer’s and client’s relative sophistication
- The amount in controversy and the results obtained
- The time limitations imposed by the client or by the circumstances
- The nature and length of the professional relationship between the lawyer and the client
- The experience, reputation, and ability of the lawyer performing the services
- Whether the fee is fixed or contingent
- The time and labor required for the case
Different lawyers can charge different amounts for their legal services.
How Contingency Fees Work
Contingency fee agreements are the most common payment structure in personal injury law. Under this arrangement, a client does not pay any upfront legal fees. Instead, the attorney’s payment is contingent on successfully resolving the case through a settlement or trial award. Your attorney will usually take between 33% and 40% of the total award.
For example, if you were injured in a car accident and your attorney secures a $100,000 settlement on your behalf, a standard one-third contingency fee would result in the attorney receiving $33,333, with the remaining $66,667 going to you. Additional case-related costs—such as court filing fees, expert witness fees, or medical records—may also be deducted from the final amount.
Importantly, if the attorney does not recover compensation for you, you generally do not owe any legal fees. This structure ensures that clients have access to legal representation without the burden of upfront costs and aligns the attorney’s interests with the outcome of the case.
Legal Costs
In addition to attorney fees, you may also incur additional costs associated with your case, such as:
- Copying costs
- Postage
- Phone charges
- Filing fees
- Deposition costs
- Expert witness fees
Make sure you understand the charges you might incur and how they affect your financial recovery. Your lawyer can explain this information to you during your free, no-obligation case review.
What Information Is Included in Your Retainer Agreement?
California law has specific rules as to what must be included in a retainer agreement for a contingency fee arrangement. These fee agreements must be in writing, signed by the client and the lawyer, and contain the following information to be valid:
- The contingency fee rate
- A statement as to how disbursements and legal costs incurred in the case will affect the contingency fee and the client’s recovery
- A statement as to whether the client could be required to pay any compensation to the attorney for related matters that arise out of the business relationship that are not covered by the contingency fee contract
- A statement the fee is not set by law (unless it’s a medical malpractice case) and is negotiable between the attorney and client
Your lawyer must provide you with a copy of the contingency agreement.
Benefits of Contingency Fee Agreements
Contingency fees offer many advantages. They allow you to secure legal representation when you need it – even if you can’t afford it. This is a welcome relief to many personal injury victims who are already dealing with unexpected expenses.
Contingency fees also allow you to pursue a case without taking on risk. If your lawyer isn’t able to secure a favorable outcome in your case, you won’t be responsible for paying for their legal services.
Additionally, your lawyer’s and your interests are aligned. Because your attorney’s legal fees are based on them successfully resolving your case, they won’t take a case they don’t believe they can win. Additionally, the more compensation they recover for you, the more money they also stand to recover.
Contact Our Personal Injury Lawyers for a Free Consultation
If you would like to learn more about the cost of hiring a San Diego personal injury lawyer, contact Pines Salomon Personal Injury Lawyers. We can discuss our fee structure and how we can help. Call (858) 551-2090 or contact us today to learn more about your legal rights and options.