For Personal Injury cases our firm proceeds on a contingency fee basis.

WHAT IS A CONTINGENCY FEE?

A contingency fee is an agreement whereby the client pays no legal fees unless and until there is recovery in the lawsuit (i.e., the attorney's fee is contingent on a successful outcome.  Such fees are usually based on a percentage–often 25% to 48% of the proceeds.  Such agreements may also be dependent upon various factors including the nature and complexity of the matter, the risk involved, the cost in pursuing the matter, and the likelihood of success. 

As far as costs go (which are different than legal fees in that costs are monies paid to third parties such as the court for the filing fee or postage to the US post office), however, the Washington Rules of Professional Conduct require that the client remain ultimately responsible for these items. So, we should discuss what this means at the outset of the representation.

SHOULD YOU HIRE A LAWYER TO ACT ON A CONTINGENCY FEE BASIS?

Some matters, in somce cases, can only be dealt with on a contingency fee basis.  Particularly, wrongful dismissal claims and serious injury claims typically involve plaintiffs who are not working and have little income.  Lawyers are expensive, and many people cannot afford to fund claims in the courts.  Also, there is comfort in knowing that your lawyer has enough faith in your case to put his fee on the line.  However, there are certain disadvantages to contingency fees, such as parting ways with 20-45% of the overall proceeds of your settlement.  

 





WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF CONTINGENCY FEES?

The obvious advantage is not having to pay a large monthly bill from your lawyer while your claim makes its way through the courts.  A potential disadvantage is less obvious.  That is, with a contingency fee, it is possible that when the settles or is finalized that you may have paid more than if you were paying monthly as the matter progressed.  Lawyers who act on a contingency fee basis take the risk of no recovery and therefore they reward for taking that risk must be higher than charging a simple hourly fee.  The lawyer also may not be able to take other cases while yours is progressing in litigation and finally, the lawyer may be advancing the  hard costs of the litigation (which in some cases) can go on for years.  Still, the contingency fee mechanism gives most people access to lawyer they otherwise would not have access to (and thus, ultimately, access to justice).
 

WHAT IS THE BEST CONTINGENCY FEE ARRANGEMENT?
 
1. Be wary of the “straight percentage.”  Your claim may settle early on. This sometimes happens, even in circumstances where you and your lawyer anticipated a long, hard battle.  Your lawyer will still expect his/her percentage.  He (or she) may be thinking of those instances when his percentage fee after a long trial seemed like very poor compensation.  You may resent the fact that your lawyer expects a large fee without your believing that he/she has done much work. 

So, it may be better to try and arrange, what some lawyers call a “graduated” fee arrangement, whereby the percentage fee increases as the matter progresses.
 
2. Be wary of the “assignment of costs” issue. Some lawyers quote a percentage for contingency fees but also include a provision in their fee agreements that whatever legal costs are awarded in the lawsuit also get paid to the lawyer in addition to the contingency fee recovery. 

  
 

IN PACTA'S PRACTICE:

At our firm, our standard practice is to collect a 33-40% contingency from the proceeds at settlement, verdict or award.  However, depending on the work done (effort entailed) we may reduce this amount so as to maximize our client's claims or so as to reach settlement.  We also do not apply a contingency to the recovery of any property damage (unless there is a dispute as to liability or insurance coverage and we are required to put forth resources to convince an insurance company or "win" that coverage dispute).

Our aim is to provide you with competent and effective representation which seeks to make you whole by providing you with the greatest amount of return.  We also seek not to benefit from an offer by the insurance company for your medical bills and/or property damage as, if liability or coverage is not in dispute, we believe you would most likely have been offered this in the first place.  Thus, our value comes in the form of increasing your award beyong the medical costs and/or property damage.

In most cases, we employ a graduated contingency rate, increase in percentage as the case is filed in court and proceeds towards trial.