How Do Lawyers Get Paid if They Lose a Case?
December 26, 2024 | Personal Injury
If you’re thinking about filing a personal injury claim, you might wonder how lawyers get paid, especially if they lose the case. Hiring a lawyer can feel like a big decision, and not knowing what happens with fees if the outcome isn’t in your favor can add stress.
The answer depends on the type of fee arrangement the lawyer uses. Lawyers typically follow one of a few common payment methods: contingency fees, hourly billing, flat fees, or a combination of these.
Contingency Fee Arrangements
In almost all personal injury cases, lawyers work on a contingency fee basis. Under a contingency fee arrangement, you don’t pay any upfront fees or hourly rates. Instead, your lawyer’s payment depends on whether they recover money for you. If they win your case through a settlement or court verdict, they receive a percentage of the compensation. If they lose, you typically don’t owe them any lawyer’s fees.
The idea behind contingency fees is to give anyone access to quality legal help, regardless of their financial situation. If you’ve been injured and have mounting medical bills or lost wages, worrying about paying a lawyer hourly or upfront might be hard. With a contingency fee, you can hire a lawyer without paying anything right away. This system also motivates your lawyer to work hard on your case because their payment depends on getting a positive result.
That said, even if you don’t pay lawyer’s fees when you lose, you may still be responsible for certain costs. These can include expenses for expert witnesses, filing fees, medical record copies, and other out-of-pocket costs related to the case. Lawyers usually discuss these possible expenses at the beginning, so you’ll know what to expect.
Hourly Billing
Not all lawyers use contingency fees. Many lawyers, especially those in other practice areas (like family law, estate planning, or business law), charge by the hour. Hourly billing means the lawyer sets a rate for each hour of work, and you pay for the time they spend on your case. This can include phone calls, research, drafting documents, and court appearances.
With hourly billing, if the lawyer loses your case, you still pay for the time they spent working, regardless of the outcome. This can be risky for a client who might end up owing a large sum without receiving any compensation. However, some people prefer this arrangement because it can give them more control over how much lawyer involvement they want. They might set budgets or limit the scope of work to keep costs under control.
Flat Fees
Some lawyers charge a flat fee for handling a specific legal task. For example, preparing a will or reviewing a contract might come with a set price. This fee does not depend on the case’s outcome or how much time the lawyer spends. Flat fees are more common in routine legal work where the amount of effort needed is relatively predictable.
In personal injury cases, flat fees are less common because it’s hard to predict how much work a case will require and whether it will settle quickly or go to trial. Flat fees are more likely in other areas of law where the tasks are more straightforward.
Contact the Arizona Personal Injury Lawyers at Runion Personal Injury Lawyers Today
If you’ve been injured and are thinking about hiring a lawyer, consider reaching out to an experienced personal injury lawyer today. They can explain their fee arrangement, help you understand your rights, and guide you through the legal process.
With the right lawyer by your side, you can focus on healing while they work to secure the compensation you need and deserve—on a payment structure that makes sense for you. Contact our Phoenix personal injury attorneys at Runion Personal Injury Lawyers to schedule a free case review today.
Runion Personal Injury Lawyers
3200 N Central Ave Suite 1100, Phoenix, AZ 85012
(602) 600-9000
