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Attorney fees in personal injury settlement

Rockford, IL |

I consulted with an attorney on a personal injury matter. His contract (I have not signed yet) says he will receive 33 1/3 percent of any amount recovered in the event of a settlement. It does not specify if this is before or after medical costs are taken out. So for example. Say I were to receive $40.000 and $20.000 goes towards medical payments. Does he get 33 1/3 of $40,000 or 33 1/3 of $20,000? Is pain and suffering + lost wages calculated separately? Thanks

Attorney Answers 10

Posted

Fees are generally on the net recovery, after reimbursement of disbursements. Liens are not disbursements. Ev. Fees are subject to negotiation. However, you do get what you pat for in this business just like any other business. Talk to the lawyer. Perhaps interview a few before deciding. Good luck.

Personal injury cases only; I'm good at it; you be the Judge! All information provided is for informational and educational purposes only. No attorney client relationship has been formed or should be inferred. Please speak with a local and qualified attorney. I truly wish you and those close to you all the best. Jeff www.nyelderinjurylaw.com

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Posted

You indicated that you consulted with an attorney. In that you have not yet signed the agreement, I believe that what you should do is to simply ask that attorney to describe how the percentage works. Have him give you a specific answer to your question. If you believe that what he tells you is something that you can agree to, agree to it. If you do not understand what he tells you, keep asking questions. Usually pain and suffering and lost wages are all wrapped up into one amount. Good luck.

Mr. Crosner is licensed to practice law in California and has been practicing law in California since 1978. The response herein is general legal and business analysis.. It is not intended nor construed to be "legal advice" but rather it is analysis, and different lawyers may analyze this matter differently, especially if there are additional facts not reflected in the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. I am not your attorney until retained by a written retainer agreement signed by both of us. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.

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Posted

I can tell you how it works in my office and for most illinois injury lawyers.

Fees are on whatever lump sum obtained. After fees are deducted, costs advanced are repaid.

Then, all liens and medical bill ate negotiated and paid. The balance will be yours tax free.

Stephen L. Hoffman
Law Office of Stephen L. Hoffman LLC
Chicago, IL
773-944-9737
Email: stephen@hofflawyer.com
Website: www.hofflawyer.com
Blog: www.hofflawyer.com/blog/

This answer posted on Avvo is for informational and educational purposes only. There is no attorney-client relationship created or formed and you should not rely on this as legal advice. The suggestion is made that if you wish to protect your rights, you consult with an attorney immediately.

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4 comments

Judy A. Goldstein

Judy A. Goldstein

Posted

The Bronx attorney below has a different formula. Did you mean to agree with that formula too?

Stephen Laurence Hoffman

Stephen Laurence Hoffman

Posted

I don't think I was agreeing with his entire answer. My understanding was that he meant groo not met. Perhaps I was wrong.

Judy A. Goldstein

Judy A. Goldstein

Posted

I like groo better than met. :-) Sorry - couldn't resists. Thanks for the clarification.

Stephen Laurence Hoffman

Stephen Laurence Hoffman

Posted

Gross works better!

Posted

This is a very good question. The standard retainer form differs in different states and sometimes among attorneys in the same state if they are not closely regulated. Some states have restrictions on the fees as well. You should have the attorney clarify exactly what his retainer states and have him clarify it in writing if necessary.

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Posted

I can give you an example. My firm serving PA & NJ deducts a 29% fee, and does not deduct a penny in costs. We also negotiate the liens down the 5-10 cents on the dollar. However, most firms sock it to you. Good luck.

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Posted

The standard personal injury contingency fee in Illinois is a one third contingency fee which requires that the client pay all costs incurred by the firm. An easy example would be a case where you settle the matter for $60,000.00 and the law firm actually incurred costs of $3000.00. One third of the settlement ($20,000.00) and the costs ($3000.00) would be the amount that you owe. In this example, you would receive $37,000.00 unless there are liens on the file. If there are liens on the file in the amount of $20,000, in this example, the entire $20,000.00 must be deducted from your settlement unless the lien holders agreed to reduce their liens or unless your attorney files an action in court to seek reduction of their liens. It must be remembered that if there is a lien on the file, there can be no distribution until that lien is resolved.

If the $20,000 to which you allude is not a lien but, rather is a subrogation interest, representing the amount that your group health insurance paid toward your medical bills, your attorney can automatically reduce the amount of that subrogation interest by the amount of his the. Again, in this case the $20,000 could be automatically reduced by one third so it could be reduced by $6666.66.

Unfortunately, most states actually require that the client remain responsible for any costs advanced during the course of the litigation. This is true in Illinois and Illinois attorneys must charge their clients for advanced costs if any recovery is made.

If this information has been helpful, please indicate by clicking the up icon. Legal Disclaimer: Mr. Candiano is licensed to practice law in Illinois and Indiana. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Links: ccandiano@themargolisfirm.com http://www.themargolisfirm.com

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Posted

A contingent fee contract will almost always specify that the fee is calculated from the gross recovery. In your example, if the overall settlement was $40,000.00, then the attorney's fee would be 1/3 of the $40,000.00 recovered, regardless of other deductions. However, you should keep in mind that there is a "lien act" in Illinois that will limit the percentage of your recovery that can be deducted from a settlement for medical bills. A good attorney will negotiate with the lien holders as well as the adverse party in order to protect the client's bottom line.

Steven A. Sigmond
Law Office of Steven A. Sigmond
345 N. Canal #1208
Chicago, IL 60606
(312) 258-8188

Steve@Siglaw.com

Steven A. Sigmond offers confidential fee consultations to anyone who has been injured in an accident or hurt at work. However, a free consultation is not legal advice. This answer is general information and should not be considered "legal advice." Proper legal advice can only be obtained after hiring an attorney and providing full information regarding your case.

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3 lawyers agree

Posted

Check your fee agreement. It should specify how the attorney's fee are calculated.

This answer is for general education purposes only. It does not create an attorney-client relationship nor is it intended to provide legal advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.

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2 lawyers agree

Posted

A well drafted contract should specify the exact calculation of fees. There is no absolute rule, but generally, in Illinois, a lawyer will take 33 1/3 of the gross recovery. This means that if the total recovery is $9,000 the attorney will receive $3,000 in fees. The client will then pay from the remaining $6,000.00 case costs, medical liens, and possibly subrogation claims. A good attorney will attempt to negotiate liens down if possible. His chance of success depends on the case and the lien-holder.

The best course to take is to contact your attorney and have the agreement clarified in writing.

Though we strive to provide accurate legal information in our answers on AVVO, our answer should not be construed as legal advice and it does not create an attorney-client relationship. Our firm only forms attorney-client relationships by written agreement signed by both our firm and the client. Please seek an in-person consultation with an attorney immediately as almost all legal matters are time sensitive and failing to meet deadlines can result in adverse consequences.

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Posted

You really need to sit face to face and discuss this issue. To complicated for quick written answer. Feel free to give me a call--my contact info is below:

Mark D. Brynteson
Attorney at Law
2969 Rolling Meadow Court
Belvidere, Illinois 61008
(o) 815-569-4280
(o) 815-975-3102
(o) 815-975-3103
(f) 866-459-4075
E-mail: mdb@bryntesonlaw.com
web site: www.bryntesonlaw.com

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