How Much Does A Personal Injury Lawyer Take In A Settlement?

How Much Does A Personal Injury Lawyer Take In A Settlement

If you suddenly need a lawyer, you may be worried about how you will pay for their services. Accessing justice can sometimes feel off-limits because of the cost, which is why many lawyers have payment plans to help everyone access the compensation they deserve.

At Virk Personal Injury Law, we offer a contingency fee method of payment so that if you ever need a personal injury lawyer but cannot afford upfront fees, you can still make your claim to get the compensation you deserve.

To find out more about contingency fees, keep reading.

What Are Contingency Fees?

Contingency fees are an agreement between you and your personal injury lawyer that states that you will not have to pay them anything for their time/fees unless they win your case. It essentially means that your lawyers are not paid unless you are. They will take a contingency fee from your compensation sum if you win your case. The amount that your lawyer takes will be set out in your agreement.

The contingency fee method means that everyone can have access to a lawyer, even if they don’t have the cash to pay upfront.

Are There Different Types Of Contingency Fees?

Yes, there are three different types of contingency fees. These include:

  • Fixed percentage – This kind of agreement sets out a percentage of your compensation sum that your lawyers will take if you win your case. This percentage does not change throughout the case.
  • Staged or graduated – This kind of contingency fee changes depending on the stage at which your case is resolved. The longer the case, the higher the percentage taken to reflect the extra work taken on by your lawyers.
  • Partial – This contingency fee agreement usually involves an upfront sum and a partial contingency fee. It means you pay some of your costs at the beginning of your case and an extra sum if you win. The initial payments are usually lower than average because of the contingency fee agreement.

After Winning Or Settling My Case, How Does The Money Get Distributed?

When you win your case, your lawyer is usually paid from your compensation. They hold it in a trust account while drawing up a statement that discloses the sum they will be taking and why. This statement should include:

  • The amount of the settlement or award
  • The amount your lawyers are deducting, plus HST
  • The amount you will be paid
  • How you will receive the money you are owed

In some cases, you may be paid directly, which means you have to pay your lawyer a portion of the compensation yourself.

Are There Any Recent Changes Regarding Contingency Fee Agreements In Ontario That I Should Know About?

As of July 2021, new rules were introduced to make the contingency fee method more transparent and fair for consumers. The new rules also make the process more efficient for lawyers.

The new rules state that lawyers must disclose the maximum contingency fee percentage charged. This figure must be disclosed clearly on their website. Typically, it’s a third of the settlement. They will also need to provide clients with a standard consumer guide on contingency fees, along with a plain language agreement and a clear and explanatory breakdown of costs after the case is resolved.

Is It Possible To End An Contingency Fee Agreement?

Yes, you have a right to end your contingency fee agreement at any point.

Your lawyer also has the right to end your agreement under some circumstances. These include:

  • If you ask them to go against their professional duty
  • If you lie to them
  • If you refuse to accept their advice on an important point
  • If you are being unreasonable or uncooperative
  • If you don’t pay your bills quickly
  • If there is a conflict of interest in working with you

Looking For An Experienced Law Firm In Hamilton That Offers Contingency Fee Agreements? Contact Virk Lawyers.

If you’re looking for a personal injury lawyer, Hamilton residents can benefit from the expert services at Virk Personal Injury Law. We’ve got decades of experience and are committed to getting you the compensation you deserve.

We offer contingency fee agreements to all our clients to ensure everyone has access to justice. Get in touch today to find out more information.