How Much Does a Lawyer Get on a Settlement? 

Personal injury lawyers, like the ones who represent individuals injured in car accidents (in Des Moines, IA), typically work on a 'contingency basis.' This means that the lawyer's fees for representing a client are deducted from the settled compensation in the client's case. Otherwise, these fees are deducted from the damages awarded from a favorable verdict. This is in the rare instance that this case makes its way to a court trial. 

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However, if the client isn’t awarded any compensation and the outcome isn’t favorable, the lawyer doesn’t collect any fees. 

Contingency Fee Percentages 

The majority of contingency fee agreements give a lawyer between 33 and 40 percent of a settlement. However, individuals can always attempt to negotiate an alternative agreement or reduced percentage. In most cases, personal injury lawyers dealing with car accidents in Des Moines, IA, receive one-third of any award or settlement. 

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An example of this would be a client receiving $30,000 from a fault party’s insurance company as a settlement offer. In this case, the client receives $20,000 while the lawyer receives $10,000. 

Alternative Options

Most lawyers draw up a fee agreement where the contingency fee percentage associated with these legal services varies. These percentages are dependent on what stage in the resolution process this case is settled and is commonly referred to as the ‘sliding scale.’ 

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An example of this could be a lawyer sending a demand letter to the responsible party. If a client has a good case, the defendant might make a counteroffer, which causes further negotiations. Thus, a fair settlement might be agreed upon before having to file a personal injury lawsuit. In such instances, a lawyer's fee percentage on this settlement might be the standard 33 percent or less. 

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However, a lawyer might charge a higher rate if a lawsuit is filed. Attorneys dealing with a car accident case in Des Moines, IA, might charge up to 40 percent for legal fees if this settlement is only received once filing a lawsuit. 

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This percentage can increase even more if the case reaches the trial stage. That’s why individuals should consider the state of their case before rejecting a pre-suit settlement offer, as it might become costlier. This is because a lawyer’s contingency percentage generally increases as the case progresses. 

The Expenses and Costs of These Legal Services 

Most lawyers dealing with car accidents in Des Moines, IA, cover the costs and expenses of such legal assistance while the case is in progress. Once a settlement is reached, a lawyer deducts the accumulated expenses from a client’s share of this compensation. It’s rare for these attorneys to charge their clients for any fees as these expenses become due. 

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Such costs might include: 

• Expert witness fees

• Medical records

• Filing fees 

• Trial exhibits 

• Postage 

• Police reports 

• Depositions

Expenses and costs can become quite hefty, especially If this case is settled after going to trial. From these costs and the contingency fee percentage, a lawyer might be entitled to between 45 and 60 percent of a client’s settlement. 

Receiving the Settlement Check