QUESTION
Is this a fair contigency fee agreement?
Asked on May 10th, 2013 on Personal Injury - New Jersey
More details to this question:
I've already had $38,000 in medical costs with reconstructive nose surgery after I passed out and hit my head on the ceramic floor in my bathroom from food poisoning, and I may need another surgery in a year from now. The contingency agreement says “As an attorney fee, I/we authorize the Attorney to keep one-third (1/3) of all the monies recovered after the Attorney is reimbursed for all costs. I/we understand that I/we will be provided with a detailed summary of all such expenses prior to distributing any monies recovered in this case. I/we understand that even if there is no recovery in this matter, I/we remain responsible for these costs."
17 ANSWERS
Animal & Dog Bites Attorney serving Draper, UT
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William R. Rawlings & Associates, LLC
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The language you presented from the Contingency Retainer agreement is typical from most Personal Injury attorneys. There are some attorneys who will take less of a percentage just to try and get your business, but be careful as "you get what you pay for".
Answered on May 16th, 2013 at 2:35 AM
Lisa Hurtado McDonnell
The standard contingency fee agreement is one third of settlement. With attorney paying all expenses. I would shop around.
Answered on May 15th, 2013 at 7:44 AM
1 Award
Yes, it is.
Answered on May 15th, 2013 at 7:16 AM
James Eugene Hasser
Contingency fee agreements vary from region to region, but what you have spelled out there appears be usual and customary language and charges. Now, whether that is fair is a decision for you to make.
Answered on May 15th, 2013 at 1:23 AM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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This is typical language and it is fair. Injury because of passing out because of food poisoning. I don't know that you can connect all these ideas. Your case may not be so good as you think it is. if you trust your lawyer (seems like you don't) rely on him. If you don't trust him hire another and trust him. You are dealing with legal issues and you have to get past liability and causation issues before you get the money in your pocket which is what you seem to be concerned with.
Answered on May 14th, 2013 at 10:05 PM
Auto Attorney serving Bloomfield Hills, MI
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Gregory M. Janks, P.C.
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Yes, this is the "standard" personal injury contingency fee agreement in Michigan as authorized by the Michigan Supreme Court. The lawyer may have the client pay the expenses of the case or the lawyer may "advance" the expenses. The client remains responsible for the expenses win or lose. The lawyer typically charges an hourly fee, which you pay as you go, or a contingent fee of 33 1/3% if you wish the lawyer to bear the risk of not being paid if there is no recovery.
Answered on May 13th, 2013 at 1:17 PM
That is a very standard 1/3 contingency clause.
Answered on May 13th, 2013 at 1:16 PM
John Hone
Yes, that is a contingency fee agreement. The attorney is being hired to represent you for a fee based upon the outcome. You could give him a retainer and pay him by the hour, but have decided on a contingency fee instead. The costs and expenses come off the top, and then it is split 1/3-2/3. This is a fair contract.
Answered on May 13th, 2013 at 1:14 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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What you have described is not an unusual contingency fee agreement, and in fact very common terms.
Answered on May 13th, 2013 at 1:14 PM
Insurance Attorney serving Seattle, WA
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Lawrence Kahn Law Group
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Yes. It is standard.
Answered on May 13th, 2013 at 1:13 PM
Yes the terms seem fair to me.
Answered on May 13th, 2013 at 1:12 PM
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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Yes, this is a standard arrangement.
Answered on May 13th, 2013 at 1:12 PM
Insurance Defense Litigation Attorney serving Auburn, CA
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Graves Law Offices
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Not only fair, but a lot of plaintiff's attorneys charge 1/3 of the gross and so if your attorney's fee agreement is charging the fee on the net after costs then that is reasonable and less than you would pay with many other plaintiff's attorneys.
Answered on May 13th, 2013 at 1:11 PM
Litigation Attorney serving San Antonio, TX
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Graves Law Firm
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Seems fair to me. I generally charge 40% but don't ask the client to reimburse expenses in the event we're not able to make a recovery. Of course you'll always owe for the cost of your medical care, win or lose.
Answered on May 13th, 2013 at 1:11 PM
Arbitration & Mediation Attorney serving Ann Arbor, MI
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Blaske and Blaske PLC
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Yes. The provision regarding costs is ethically required. In other words, with very few exceptions, lawyers are obligated to require clients to be responsible for the costs incurred. Also, it is only appropriate to charge the 1/3 contingency fee on the net recovery (i.e. after costs and expenses have been reimbursed), which actually saves the client money, because if the 1/3 fee were calculated on the gross recovery, the fee would be larger, cutting further into the client's take-home recovery.
Answered on May 13th, 2013 at 1:10 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Sounds fair to me. You may ask if the contingency increases if the attorney has to file a civil action.
Answered on May 13th, 2013 at 1:10 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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This reads as a standard Contingency Fee Agreement in New Jersey.
Answered on May 13th, 2013 at 1:10 PM