Asked about 1 year ago - Fresno, CA
FlagI was involved in car accident and went to the ER for minor injuries. When having an attorney to deal with this type of small case/negotiations, does the type of fee [hourly- or contingency-based] play in favor for the client?
Over the past 10-15 years insurance companies have made great efforts to minimize the payouts on what they call "minor-impact, soft-tissue" cases. Unfortunately the insurance companies, their attorneys, and the hired "experts" they use have done a very good job of convincing juries that little money should be given to compensate in these types of cases. This, despite the fact that evidence clearly shows that persons can be, and are, injured in such collisions.
This has led insurance companies to make small offers to settle these claims, regardless of whether a person has an attorney. Often times I counsel people who are not seriously injured that they can handle their own claim by providing medical bills and records to the insurance company and negotiate their own settlement without a percentage being paid to an attorney.
I recommend that you consult with an attorney who can better analyze your specific case and advise you as to whether or not legal representation is necessary.
It depends upon the amount of potential recovery. While it is quite common for personal injury attorneys to charge on a contingency fee basis, there is nothing which prevents an attorney from charging an hourly rate, or even charging a flat fee, or some combination of contingency, hourly, and flat fee.
I agree with Mr. Roberts above, Insurance companies have become harder and harder to deal with for soft tissue type injuries. I was a claims adjuster for over 12 years for a major insurance company before I became an attorney. I understand their job perfectly. The majority of personal injury attorneys including myself take their payment out of the settlement they obtain for you. You should not have to pay any upfront fees to the attorney at the beginning of your case. I am in Fresno and would be happy to answer your questions. Should you decide to go it alone I wish you the best of luck.
Frankly, as to which basis is better for the client (hourly vs. contingency) in a soft tissue case, the answer is probably "it depends". What is the contingency percentage vs. the hourly rate? Most personal injury firms will operate on a contingency basis, but there are some that will perform hourly work for cases like this.
As stated above, you might just be better off attempting to go through the claims adjusting process on your own. Gather all of the medical records, bills, car repairs, work information (if you had to take time off work), and try to resolve the case on your own through the insurer. If the insurer comes back with a lowball offer or a denial, then you will need to conduct a cost/benefit analysis as to whether hiring an attorney is worth the chunk (and it can be a large chunk, depending upon the contingency percentage or the number of hours involved) that will come out of any proceeds you might recover.
You need to understand the difference between an hourly fee and a contingent-fee. Win, lose, or draw you will owe your attorney an hourly fee. Usually that is not a good bet for a personal injury claimant. Do you have up front cash to pay a substantial retainer? Most people who come to my office do not have enough cash to pay for ongoing legal services as they are incurred. With a contingency fee, you only pay the lawyer for his time and services if he successfully collects money for you. You know that there will be enough money to pay his full bill, because it is a percentage of your recovery. If you do not get paid, he does not get paid. A contingent-fee also provides a good incentive for hard work by the attorney.
Legal Disclaimer:
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Mr. Lundeen is licensed to practice law in Florida and Vermont. 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. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to ensure proper advice is received.
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