Introduction to Contingency Fees
A contingency fee arrangement allows clients to hire an attorney without upfront payment. Instead, the attorney’s fee is a percentage of the compensation recovered in the case. This makes legal services accessible to people who may not have the financial resources to pay hourly or flat fees.
Legal Requirements for Contingency Fees
In Utah, all contingency fee agreements must:
- Be in writing.
- Be signed by both parties before legal representation begins.
This requirement is outlined in Utah Rule of Professional Conduct 1.5(c), ensuring clarity and transparency for both the client and attorney.
How Do Contingency Fees Work?
- The attorney works without payment during the case.
- If the case results in a settlement or verdict, the attorney receives a pre-agreed percentage of the total compensation.
- If the client loses, the attorney does not receive any payment for their services.
Examples:
- A case settles for $100,000. With a 33% contingency fee, the attorney’s share is $33,000.
- If the case goes to trial and results in a $200,000 verdict, the attorney earns $66,000 at a 33% rate.
Standard Contingency Fee Percentages
Utah car accident attorneys commonly charge:
- 33% of the total settlement or verdict.
- 40% if a lawsuit is filed and the case becomes more complex.
Attorney Jake Gunter’s Policy:
Attorney Jake Gunter charges a flat 33% contingency fee whether the case settles or goes to trial.
Changing Attorneys Mid-Case
You have the right to change attorneys if you’re unsatisfied with your current representation. However:
- Depending on the agreement, you may be liable for fees and costs incurred by the original attorney.
- If the attorney fires you, you might not owe them anything.
Advantages of Contingency Fees
- Accessibility: Allows people with limited resources to hire an attorney.
- No Financial Risk: Clients don’t pay unless they win.
- Motivation for Attorneys: Attorneys are incentivized to achieve the best possible outcome for their clients.
Disadvantages of Contingency Fees
- Higher Costs for Large Settlements: A 33% fee on a substantial recovery can result in a higher payment to the attorney compared to hourly billing.
- Risk of Additional Costs: Some agreements may require clients to pay litigation-related costs, such as expert witness fees or court filing fees, even if the case is unsuccessful.
Contingency Fees vs. Hourly Billing
| Feature | Contingency Fees | Hourly Billing |
|---|---|---|
| Upfront Costs | None | Payment required upfront or in regular intervals. |
| Risk to Client | No payment if the case is lost. | Client pays regardless of outcome. |
| Attorney Incentive | Motivated by the potential for a larger settlement. | Less tied to case outcome. |
Contingency Fees and Jury Trials
The contingent fee system, combined with the right to a jury trial, creates a powerful tool for achieving justice. It allows individuals to challenge powerful defendants, such as insurance companies, without financial barriers.
Notable Quote:
“Trial by jury is part of the bright constellation which leads to peace, liberty, and safety.” – Thomas Jefferson, 1801.
FAQs About Utah Car Accident Contingency Fees
What is a contingency fee?
A contingency fee is a percentage of the settlement or verdict that an attorney earns only if the case is successful.
How much do car accident attorneys in Utah charge?
Most charge 33% of the settlement or verdict, with some increasing to 40% if a lawsuit is filed.
Can I switch attorneys during my case?
Yes, but you may be responsible for costs incurred by your original attorney depending on the agreement.
What if I lose my case?
You typically don’t owe the attorney any fees if the case is unsuccessful.
Are there additional costs besides the contingency fee?
Some agreements may require clients to cover litigation-related expenses, like court filing fees or expert witness costs.
Why do attorneys charge higher fees for trials?
Trials involve more work, time, and resources, justifying a higher contingency fee percentage in some cases.
Conclusion
Contingency fees empower individuals in Provo, Utah, to pursue justice after a car accident without upfront financial barriers. Understanding how these agreements work ensures you can make informed decisions and choose the right attorney for your case.
UTAH CAR ACCIDENT LAWYER JAKE GUNTER ALWAYS WORKS ON A CONTINGENT FEE. CALL/TXT (801) 373-6345 FOR A FREE CONSULTATION.