At Horst Shewmaker, we are a team of experienced personal injury attorneys dedicated to helping people who have been injured through no fault of their own. We focus on providing honest, straightforward legal representation and fighting to get our clients the compensation they deserve. When you work with us, you get personal attention and a team that cares about your case.
Hiring an attorney for a personal injury case can feel overwhelming, especially when it comes to understanding legal fees. Many personal injury attorneys in Georgia work on a contingency fee basis, which means clients do not pay attorney fees upfront. Instead, the attorney receives a percentage of the money recovered from a settlement or jury award. Knowing the standard contingency fee for an attorney, how fee agreements work, and what additional costs may apply is important before choosing a law firm.
In this blog, we cover how contingency fee agreements work, the standard fee in Georgia, and key questions to ask when hiring an experienced Alpharetta personal injury attorney.
What Is a Contingency Fee?
A contingency fee is a common way attorneys charge for legal services in personal injury cases. This section explains how contingency fee agreements work, why they are used, and how they affect both the client and the law firm.
Contingency Fee Definition
A contingency fee is a payment arrangement where the attorney only receives payment if they recover compensation for the client. Instead of paying an hourly rate or upfront costs, the client agrees to give the attorney a percentage of the final settlement or jury award. This is known as working on a contingency fee basis.
How a Contingency Fee Agreement Works
A contingency fee agreement is a contract that explains the fee structure and how much the attorney will be paid if the case is successful. The standard contingency fee for a personal injury attorney in Georgia is usually 33.33% (one-third) of the amount recovered. In some cases, the percentage may be higher, especially if the case goes to trial and requires more time and resources.
When Contingency Fees Are Used
Personal injury lawyers often use contingency fee arrangements for cases like car accidents, slip and falls, medical malpractice, and workers’ compensation claims. Contingency fees are not used in criminal law cases or family law cases, as Georgia law does not allow them in those situations.
Why Clients Choose Contingency Fees
Clients choose contingency fee cases because they do not have to pay attorney fees or filing fees upfront. The attorney takes on the risk involved in the case. If there is no recovery, the client does not owe any attorney’s contingency fee. This makes legal representation possible for people who cannot afford hourly fees.
Key Terms to Know
- Contingency fee percentage: The share of the settlement or award the attorney will receive.
- Fee agreements: Written contracts outlining the terms of payment arrangement.
- Contingency basis: The method of payment based on winning the case.
- Reasonable fees: Fees that are fair under state rules, such as Georgia Rule of Professional Conduct 1.5.
What Is the Standard Contingency Fee for Attorneys in Georgia?
Knowing the standard contingency fee helps clients understand what to expect when hiring a personal injury attorney in Georgia. This section explains the typical contingency fee percentage, when fees may change, and what factors affect the amount.
Typical Contingency Fee Percentage
The standard contingency fee for an attorney in Georgia is 33.33%, or one-third of the total amount recovered. This percentage is common in personal injury cases such as car accidents, wrongful death claims, and medical malpractice lawsuits. The fee is paid only if the attorney successfully recovers compensation through a settlement or jury award. If there is no recovery, the client does not pay an attorney’s contingency fee.
When the Contingency Fee May Increase
In some cases, the contingency fee percentage may increase if the case goes to trial or requires an appeal. A typical increase is from 33.33% to 40%, reflecting the extra time, work, and litigation costs involved. These details are usually outlined in the contingency fee agreement, which the client signs before representation begins.
Factors That Influence Contingency Fee Rates
Several factors may affect the fee structure and percentage charged in a contingency fee case:
- Complexity of the case: More complicated personal injury claims may involve higher fees.
- Risk involved: If the case has uncertain outcomes, a higher contingent fee may be charged.
- Type of case: Standard fees apply to most personal injury cases, but workers’ compensation claims may have state-regulated fees.
- Stage of resolution: If the case settles early, a lower contingency fee percentage might apply, but this should be clearly stated in the fee agreement.
Georgia State Rules on Contingency Fees
Under Georgia Rule of Professional Conduct 1.5, attorneys must charge reasonable fees and put all contingency fee agreements in writing. The agreement must explain how fees are calculated, what litigation expenses will be deducted, and how costs like court filing fees, medical records, witness fees, and court costs are handled.
Why Choose a Contingency Fee Arrangement? Pros and Cons
A contingency fee arrangement allows clients to hire an attorney without paying upfront costs. This section explains the main benefits and possible drawbacks of hiring a personal injury attorney on a contingency fee basis.
Pros of a Contingency Fee Arrangement
- No upfront attorney fees: Clients only pay if the attorney recovers compensation.
- Shared risk: If the case is lost, clients usually do not owe attorney’s fees.
- Attorney motivation: Attorneys are driven to win because their fee depends on success.
- Access to legal services: Clients can hire a law firm even if they cannot afford hourly rates.
- Aligned goals: Both client and attorney aim to achieve the best possible settlement or jury award.
Cons of a Contingency Fee Arrangement
- High percentage fee: Attorneys often charge 33.33% to 40% of the total recovery.
- Deduction of costs: Court costs, filing fees, witness fees, medical records, and other litigation costs may be taken from the final settlement.
- Not available for all cases: Contingency fee agreements are not allowed in criminal law cases or family law cases in Georgia.
- Possible responsibility for expenses: Clients may still owe certain court fees or case expenses, even if the case is not successful, depending on the fee agreement.
When a Contingency Fee Arrangement Makes Sense
Contingency fee agreements work well for personal injury claims, such as car accidents, slip and fall injuries, and workers’ compensation cases. Clients should review the fee structure and understand how attorney fees and additional costs are handled before signing any agreement.
Questions to Ask Before Signing a Contingency Fee Agreement
Before agreeing to a contingency fee arrangement, clients should ask clear questions to understand the fee structure, costs, and their responsibilities.
What Percentage Will the Attorney Charge?
Clients should ask for the exact contingency fee percentage. In Georgia, standard contingency fees are often 33.33%, but some cases may involve higher fees, especially if they go to trial. It is important to confirm if the percentage changes depending on how the case is resolved.
Will the Fee Increase if the Case Goes to Trial?
Some contingency fee agreements include a higher percentage if the case requires a lawsuit, trial, or appeal. Clients should ask if the contingency fee charged will increase beyond the standard rate if the case does not settle early. Knowing this helps clients understand the full payment arrangement.
Who Pays Court Costs and Other Litigation Expenses?
Clients should ask how court filing fees, medical records costs, witness fees, court reporter fees, discovery costs, and other litigation expenses will be handled. These additional costs are often paid from the final settlement, but clients need to know if they could be responsible for these expenses if the case is not successful.
What Happens if You Do Not Win the Case?
It is important to confirm whether the client will owe anything if the attorney does not recover compensation. Most contingency fee cases mean the client does not pay attorney fees if the case is lost, but some fee agreements may require clients to repay court costs or filing fees.
How Will the Final Settlement Be Distributed?
Clients should ask for a clear explanation of how the final settlement or jury award will be divided. This includes the attorney’s contingency fee, litigation costs, medical liens, and the client’s share. Understanding this breakdown helps prevent surprises when the case is over.
Is the Agreement in Writing?
In Georgia, all contingency fee agreements must be in writing under Georgia Rule of Professional Conduct 1.5. Clients should ensure they receive a written contract that explains the fee structure, percentage, and how costs will be handled.
Contact an Experienced Alpharetta Personal Injury Attorney Today!
If you have questions about contingency fee agreements or need guidance on a personal injury case, our team at Horst Shewmaker is here to help. We will explain how our fee structure works, what costs to expect, and how we handle your case from start to finish. Our experienced attorneys are ready to fight for your rights and help you recover fair compensation.
Contact us at (404) 400-1175 today for a free case consultation!
