Attorneys charge for their legal services in different ways. Some attorneys charge an hourly rate to their clients. These attorneys may ask for a certain amount of money up front, referred to as a “retainer”, and then charge their clients after they have completed a certain amount of work. This is common when representing a client regarding a family matter, such as custody issue or when representing someone who has been accused of a crime.
Attorneys who represent people who have been wrongfully injured usually charge in a different way. Normally, personal injury lawyers only charge their clients for legal services if they successfully recover money for them. This type of arrangement is referred to as a “contingency fee” because it is contingent upon a successful financial recovery.
Personal injury lawyers do not charge their clients if there is no financial recovery from a trial. If there is a financial recovery from a settlement or jury verdict, lawyers receive a percentage of the money that is recovered. The specific percentage for attorney fees depends on the type of case. Generally, most personal injury attorneys prefer charging a contingency fee because they want the very same thing that their clients want: a fast, reasonable recovery.
Attorneys can also recoup costs of litigation in different ways. Examples of litigation costs include filing the lawsuit at the courthouse and serving corporate representatives with the lawsuit. Some attorneys ask their clients to pay for these costs directly as they occur. This is commonly how insurance companies pay for litigation costs because they have the money to do so.
Normally, personal injury lawyers do not ask their clients to directly pay for litigations costs as they occur during litigation. Instead, personal injury lawyers often invest their own money in their cases and advance the litigation costs. If there is a financial recovery, the client will reimburse the lawyer for these litigation costs. Generally, most personal injury attorneys prefer investing in their client’s cases because they want the very same thing that their client wants: to keep costs as low as possible.
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