As your personal injury attorney, my goal is to ensure that you understand every aspect of your case, including how attorney fees work.
If you’re considering hiring a lawyer to help with a personal injury claim in Oregon, understanding the fee structure can make the process less intimidating and help you make informed decisions.
Here’s a breakdown of how attorney fees typically work in personal injury cases and what that means for you.
How It Works: In most personal injury cases, including those in Oregon, attorneys work on a contingency fee basis. This means that you don’t pay any attorney fees upfront. Instead, the attorney’s payment is contingent on winning the case or reaching a favorable settlement.
Percentage-Based Fee: If we win your case or settle, the attorney fee is usually a percentage of the total amount awarded. In Oregon, this percentage generally ranges from 33% to 40%, depending on the case’s complexity and whether it goes to trial. We’ll agree on the exact percentage before we begin.
No Win, No Fee: If we do not secure a settlement or favorable judgment, you owe nothing in attorney fees. This structure reduces financial risk, allowing you to seek justice without upfront costs.
Your attorney should issue a demand letter to the person that caused you injury. The letter will detail your injuries and make a demand for payment. If you have a strong case, the defendant will often make a counteroffer and further negotiations will follow. All of this occurs before you file the lawsuit. If you settle before the lawsuit was filed, it is likely that your attorney cannot receive more than 1/3.
The defendant may not take negotiations for a settlement serious; they may fail to answer your demand letter entirely. At this point, if the case is strong, you will file suit. If the settlement happens after you file the lawsuit, your attorney may receive a higher contingency fee – usually 40%. If the case settles for $300,000 after you file suit, your attorney may receive $120,000. Also, before you decide to reject a settlement before the lawsuit is filed, consider the ongoing expenses of the lawsuit. As the weeks drag on, the case will get more expensive.
Most personal injury attorneys cover costs and fees to develop the case and then deduct them from your settlement. We certainly do that for our clients. Be aware there are some lawyers who would charge you along the way for costs and expenses as they are due.
Some of the common expenses in a personal injury case are:
Note that costs and expenses can be substantial if the settlement does not happen close to trial. If you car accident, pedestrian accident, wrongful death attorney believes in you and your case, he would invest every penny he has to help you recover what is right. Therefore, your attorney’s final percentage with all fees, expenses, and costs could be high.
At the end of the case, the settlement checks arrive at your attorney’s office. The attorney has to deposit funds in his trust account. Allow 2-3 weeks for the check to go through the bank system. Once the check has cleared you will receive in writing the explanation of the case accounting and the instructions for you to pick up your check.