Before I became an attorney, I always noticed billboards and television ads that said “only pay if you win.” Like many I thought, “yeah, whatever!” When my father was injured as a result of a reckless driver and the insurance company only offered him $2,000 to settle, I became outraged. His medical bills were nearly four times that and they wouldn’t accept any responsibility or attempt to make him whole.
We consulted an attorney and learned what a “Contingency Fee Agreement” is. Essentially it means that you don’t pay anything up front and then you disburse the funds when you settle the case or get a judgment in court. Most contingency fee agreements for personal injury attorneys in the United States are 33%. By most I mean probably 99%, 100% of the ones I’ve ever personally seen. This means once the case comes to a conclusion the attorney gets 1/3 of the value of the case.
The typical case goes like this:
You get into a collision. The insurance adjuster wants a statement and wants all of your records. They make you a crap offer of $2,000 to $10,000. You call an attorney and get a free consult. The attorney sends a letter to them and negotiates a fair deal in exchange to not file a lawsuit. You settle for $30,000. The attorney gets 33%, or $10,000. Since you didn’t file the lawsuit there are no other expenses. You get $20,000. BTW in over 160 cases, I have never seen a fair offer prior to hiring an attorney.
“That seems high, I’ll just do it myself.”
I have yet to see a client achieve a better settlement without an attorney than with an attorney, though it is possible it has happened for someone, somewhere. In our case, even after the attorney took his contingency fee, we ended up with nearly 9x more than we would have achieved on our own. In auto collision cases many attorneys say that you will end up with three times more (even after the contingency fee); however, each state’s bar association does not allow us to guarantee those figures. Attorneys can file lawsuits, which insurance companies are obligated to defend. Defending cases is very expenses, thus when you bring an attorney on the case you show them you are serious.
The Apex Law Difference
I take issue with the 33% figure for contingency fees. I think it is a bit too high and leaves the client with less than they deserve. At Apex Law, LLC, our contingency fee is 25%. This is among the lowest in the industry, and the lowest I have personally seen in 6 years. Our consultations are free. I will tell you if I believe the offer from their insurance company is fair or if you are leaving money on the table.
Email our lead attorney at neil@apexlawmo.com.
Comments