No Win, No Fee: Contingency Agreements in Personal Injury
posted in: Personal Injury
Contingency fee agreements provide a unique opportunity for clients seeking legal representation in personal injury cases. Unlike the hourly fee-based approach, contingency agreements allow clients to obtain legal representation while minimizing their financial uncertainty. These agreements ensure that the lawyer is only paid as a percentage of whatever amount they are able to obtain for the client and only paid once the claim is finished.
Benefits of Contingency Fee Agreements
Here are the top five benefits of contingency fee agreements for people injured in an accident in Alberta:
- No Upfront Costs: Clients do not have to pay their lawyer any upfront or ongoing costs or retainer fees. The lack of upfront costs can be a significant benefit, especially for clients who are off work as a result of their injuries or do not have the financial resources to pay for legal representation at the outset of their case. Payment is only required once the lawyer secures a settlement or wins the case in court, and only comes out of the funds actually received. Whether you’re recovering from a motor vehicle accident or a boat accident, working with a lawyer that works on contingency means you can focus on your recovery instead of paying upfront lawyer fees.
- Shifted Financial Risk: The lawyer assumes the financial risk of the case and is only paid if they are successful in obtaining a settlement or court award. This provides clients with peace of mind and confidence in the level of devotion demonstrated by their lawyer. It also ensures that most of your settlement doesn’t go to your legal costs, or worse that your legal bill is higher than your claim is worth. Contingency fees guarantee most of the settlement goes to the injured client, no matter how much work or time is involved. This means if you’re suffering from an injury like a brain injury or spinal cord injury, your settlement will compensate you for all losses including lost earnings, retraining costs, medical and treatment expenses, replacement housekeeping and personal care services, out of pocket expenses and compensation for your pain and the other affects an injury has on your life.
- Incentivizes Lawyers: As the lawyer’s payment is contingent on the outcome of the case, they are incentivized to work harder and pursue the best possible outcome for their client. This often leads to better results for the client. As there is a direct relationship drawn between the success of the case and compensation received, the lawyer is highly motivated to produce exceptional results.
- Access to Justice: Since the initial financial burden is eliminated, it is easier for clients to access the justice system, particularly those who may not be able to afford legal representation otherwise. Personal injury cases can be complex and costly, which makes it difficult for many people to pursue their legal rights. With an agreement contingent only upon the success of their case, individuals are given the opportunity to seek justice without fearing for their financial livelihoods.
- Level Playing Field: These types of agreements can help level the playing field between clients and powerful defendants, such as insurance companies, who often have deep pockets and extensive legal resources. Injured clients may be up against powerful adversaries with unlimited resources to defend their interests. With a contingency-based agreement, clients can have a strong and experienced legal team working for them without worrying about the associated costs of litigation.
There are several advantages in pursuing contingency fee agreements with regards to personal injury cases in Alberta. While the benefits are not limited to the five mentioned above, this list briefly outlines how a contingency-based approach better serves the interests of the clients.
KMSC Injury Law Team
At KMSC, we know how stressful pursing legal matters can be. Our contingency fee agreement is just one of the ways that we alleviate your stress, help your legal matter proceed smoothly, and ensure you are satisfied with the result of your claim.
If you are seeking legal advice regarding your personal injury claim, please contact the KMSC Injury Law Team today for a free consultation. Our experienced team of litigators will ensure your claim gets the resolution it deserves, all while ensuring you are exposed to minimal financial risk.