About Hiring a Contingency Fee Lawyer

Things to Think About … Questions to Ask … BEFORE signing a contingency fee agreement

Fees versus Costs

A contingency fee contract lets you bring a lawsuit with little or no upfront money. It costs you little or nothing (not counting your time) if you lose — unless you have agreed to pay court costs, etc., win or lose. Discuss the various expenses involved, including court filing fees, expert witnesses, medical records, depositions, and any other costs. A lawyer will normally advance the money to pay for such expenses — but it may demand to be repaid, win or lose. A lawyer in a contingency fee agreement may lose money on a case, if he both loses your case and has to pay your court fees.

Make sure you understand what you will be responsible for if the lawyer loses the case.

What Percentage Fee?

In most situations, there is no set percentage for a contingency fee. Often, 33 percent is the share the lawyer wants; sometimes 40 percent or 45 percent if the case goes to a trial. Some lawyers advertise lower fees than 33 percent. Workers compensation cases have a lower percentage set by law. Also, if the plaintiff is a minor, fees are capped by law at a level lower than 33 percent — this varies from county to county. The money is collected after the case is settled or goes through a trial.

You can ask for a lower percentage fee in a simple case. If the person driving the car that hit yours is clearly in the wrong and the injuries and damage are not complicated, your lawyer might get a good settlement by sending a letter to the driver’s insurance company and making a few follow up phone calls. If it is not clear who is at fault, then it will take time and money to establish this. A higher fee percentage may be justified.

Discuss the complexity of your case with the lawyer before agreeing to a contingency fee percentage

Ask whether the lawyer intends to handle the case alone or with other lawyers. If the case is shared, ask what kind of fee arrangement will be made.

You Can Shop for an Attorney

You can — and should — talk with more than one attorney. Shop around until you find a fee you agree to and a lawyer with whom you are comfortable. You have the right to ask questions about the lawyer’s education, training, and experience — especially with cases similar to your case. Use an Internet search to look up the lawyer you’ve talked with and his or her law firm. A law firm’s web site can give you some idea on the lawyers’ approach to the law. Sizzle, hustle, and boast? Or steady and careful? Does the web site tell you anything about fees and how they are calculated (most don’t!). But remember, just because a law firm doesn’t have a web site doesn’t mean it’s not a good law firm.

In California you can go to the State Bar of California web site and look at a Sample Contingency Fee Agreement with a discussion of the laws covering its use:
http://calbar.ca.gov/calbar/pdfs/MFA/Sample-Fee-Agreement-Forms.pdf

You can also go the State Bar web site and look up the lawyer you are considering hiring: http://members.calbar.ca.gov/search/member.aspx

You’ll see where and when he or she graduated from law school and, importantly, whether he’s been formally disciplined for an ethical or other violation.

Some Other Tips

Prepare a list of questions before you meet with a lawyer: What recent cases have you handled? Which were settled and which sent to trial? Will you be handling the case alone? What role will paralegals (people who are somewhat trained in the law but haven’t taken and passed the state bar exam) and other assistants play? Ask for references and check them out: Would you hire this lawyer or firm again?

Don’t sign a contract until you have time to review other offers. Make sure you understand what you are signing.

Know how you can fire a lawyer — before you hire the lawyer.

Don’t Forget the Options: Arbitration or Mediation

Ask the prospective lawyer for all the options, especially the advantages and disadvantages, of suing and heading for court. Litigation is time consuming. Mediation or arbitration might work well for you, settling matters sooner and with less stress. A lawyer should be willing to discuss these options with you in detail, both before you hire him and as the case moves ahead. Some courts require people in a lawsuit to try to arbitrate their dispute before moving toward a trial.

For more tips on hiring a contingency fee lawyer, follow the link here to myLawCoach, a web site published by a consultant and expert witness on attorney’s fees.