Understanding Contingency Fee in a Nevada Personal Injury Case

contingency fee

A contingency fee is how some legal counsels charge their clients. If you are injured as a result of a traumatic event, you may be thinking about how to obtain fair redress for your claim. You probably already know the benefits of having an experienced lawyer on your side. To help you handle your Nevada personal injury case in the best possible way, you may have questions about what it is like to work with a personal injury lawyer.

One of the things that might interest you is how your lawyer is paid for the services they render. Here is what you need to know about how contingency payments work in injury cases.

What Is a Nevada Contingency Fee?

A contingency fee in the event of an injury is a fee in which the attorney agrees to be paid only if the verdict is in your favor. The lawyer agrees to take a percentage of the money you collect in your case as a fee. The lawyer runs the risk of winning the case. The more money you make, the more the attorneys will be paid.

How Does the Contingency Fee Work in Nevada Injury Cases?

Nevada personal injury contingency fee works by agreement between client and attorney. The attorney receives a percentage of the proceeds of the case as payment. The number of hours a lawyer spends on a case is not relevant when it comes to how much lawyers are paid.

When a person is injured, arranging for adequate financial resources to pay a lawyer can be a major issue. Fortunately, payment for contingencies is often the answer. Lawyers do not take home anything until the attorney cancels the settlement or wins a judgment on behalf of the client.

Are Contingency Fees Mandatory?

No, incidental expenses are not required for personal injury cases, but attorneys and clients must agree if they wish to account for incidental expenses. While most personal injury victims prefer a contingency agreement, it is up to you if you want to negotiate a contingent payment plan with your attorney.

Benefits of Entering into a Contingency Fee Arrangement?

The main benefit of the contingency when factoring in the client’s perspective is that they do not need to make an advance. They could pay only a small amount to cover the initial cost of filing a claim.

Clients do not need to worry about hiring the most expensive attorney or paying their fees if they do not win the case. In this scenario, the final payment made to lawyers is directly proportional to the amount of the ultimate financial payout. The contingency fee encourages the lawyer to settle your case for the maximum amount of money possible.

Contingency Rules in Personal Injury Cases:

According to The Nevada Rules of Professional Conduct, Nevada Rule 1.5 sets out the principles that attorneys must follow when entering into contingency agreements. These include:

  • Submit the agreement in writing
  • The client must sign the agreement
  • Each contingency agreement must state that this is a fallback and the statement cannot be written
  • It must be clear whether the customer will have to pay any incidental costs depending on the outcome
  • The settlement must inform the client that he or she may be responsible for the other party’s fees and costs if the case is lost

The purpose of rule 1.5 of the Nevada Code of Professional Conduct Contingency Charges Agreement is to ensure that the agreements are fair.

Who Decides When to Settle the Case If You Have a Contingency Fee?

Even with unforeseen expenses, the client always decides when to settle the matter. An agreement to pay a contingency fee does not mean giving up control of the case. A lawyer must carefully prepare your case and provide you with truthful information. You need to make an informed decision. However, you must agree to either settle the case or continue with the trial. The contingency fee does not change the client’s right to make the final decision in their case.

What Happens If I Have an Unexpected Fee?

Once your injury case is settled, your attorney will provide you a document mentioning all the expenses incurred. They will show you how they calculate their fees. While this does not mean that you will receive an hourly statement. They should be able to reasonably demonstrate what they are subtracting and how they calculate your payment based on the contingency agreement.

Contact Us to Oversee Your Nevada Personal Injury Case:

Our lawyers will provide you with free advice. Our team can answer all your questions about how contingency benefits work and whether this is the best option for your Nevada personal injury case. Call us today.