What is the "industry standard" for contingency cases?

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I was wondering what is the "industry standard" for contingency cases? My husband & I were involved in an auto collision; we contacted a lawyer that will charge 1/3 of recovery (40% if case goes to arbitration or trial) and fees are additional. This seems excessive to me; especially as charging unspecified fees (copy fees, etc.) are in addition to the 1/3 of settlement I see no motivation on the legal councils end to attempt to contain costs.

Asked 11/9/2009 under Auto Accidents | 375 View(s) | More Legal Topics

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Auto Accidents Law Answers

Timothy McCormick / Libris Solutions Answered 2 years ago | Contributor with 0 answers This attorney is licensed in California

That is, in fact, the "industry standard."  It does not motivate the attorney to keep costs down, though many of us do not include basic overhead in the"fees" and most of us do specify what "fees" will be charged.  For example, I do not charge for copies unless requested by the client or if I have to use an outside service, such as for receiving or responding to discovery requests.  I don't bill for travel expenses within 20 miles, and I don't charge for phone bills unless it's a formal teleconference with an outside vendor who bills me.  I always require clients to pay filing fees up front.  Other fees, such as depositions, I may require the client to pay for at the time, or I may advance those expenses.  What the contingency fee DOES do is motivate the attorney to get your case settled as quickly as possible.  It also motivates the attorney to maximize your recovery within the range he or she believes can be obtained.  Lastly, it gives you a chance to shift the risk of your recovery onto someone else.  That is expensive because if your case turns out to be no good, you're just in the same place as if we hadn't taken the case, but we wind up having been effectively unemployed for all the time we put into your case.

Marilyn Thomassen / Thomassen & Associates Answered 2 years ago | Contributor with 0 answers This attorney is licensed in California

I include all costs in my one third attorney's fees, as long as the case settles before two years.  By that time, if the case hasn't settled, a law suit would have to be filed to preserve the statute of limitations.  I cover the filing fees ( approx. $380.00) for that law suit, but those fees will be deducted out of the settlement proceeds.  I would also advance arbitration or mediation fees.  Actionlaw@yahoo.com

Barry Besser / Barry I. Besser, Law Offices of Answered 2 years ago | Contributor with 0 answers This attorney is licensed in California

What you have indicated is in fact the standard, however, some attorney's may have a different contingency structure depending on the case.  The most important thing for you to worry about, is getting someone in your corner from the very beginning so that your case can be worked up properly.  If there are any visible injuries, you should take pictures of those injuries.  Also, if you haven't already done so, pictures should be taken of your car, and if it isn't too dangerous, pictures should be taken of the area where the accident occurred.

BARRY BESSER, www.besserlaw.com

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