Legal Question in Personal Injury in New Jersey
auto accident lawyers fees
my friend had a car accident and went to an attorney to handle the case two years ago. The attorney wants her to come in and discuss a settlement. There was never an upfront fee. Are there general guidelines as to the lawyers fee
1 Answer from Attorneys
Re: auto accident lawyers fees
Great question. Most personal injury lawyers work on a contingent fee. That means the lawyer is paid a percentage of the settlement proceeds. The lawyer only earns his fee when the case is settled; or a judge/jury returns a favorable verdict.
In New Jersey, the percentages an attorney is permitted to charge is set by court rule. For example,the contingent fee on the first $500,000 of a recovery is .33%. A contingent fee agreement must be in writing, signed by both parties; and a copy of the agreement must be delivered to the client.
A contingent fee is calculated by reducing the settlement amount by the costs spent on preparation and trial. For example, there are costs for obtaining medical records, doctor's narrative reports, and filing fees, among others.
After you deduct costs from the settlement, the lawyer is entitled to a percentage of the net figure. $10,000 settlement with $350 in costs = $9,650. Apply the contingency fee percentage of .33% (in NJ), leaving the lawyer with a fee of $3,184.50.
A personal injury lawyer is not paid an upfront fee. However, in certain types of cases, the attorney may ask a client to share or advance some money for costs.
I hope this answers your question. Please feel free to continue the conversation.
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