The Myths About Legal Fee for Compensation Cases

The Myths About Legal Fee for Compensation Cases

Lawyers have this myth around them that they are greedy liars and popular culture like movies have not helped change this mindset in any way. As far as lying is concerned, you should know that all lawyers have a code of ethics and in violation of these ethics will cost them their license to practice law. The myth of lawyers being sincere-less comes from the nature of their job. Sometimes they might have to defend a guilty party. But what people are conveniently forgetting is that everyone is innocent until proven guilty. Now that it’s out of the way, we need to talk about the greed bit. That stems from the fact than lawyers are known to be very expensive. This really depends on the area of law that each one practices. The aim of this article is to set the record straight about compensation lawyers specifically and briefly discuss what kind of costs are when it comes to compensation.

Contingency Fee

This means that there is no upfront payment for your compensation case. Some lawyers will often charge what is known as a contingency fee. This means that in lieu of a deposit (or retainer), lawyers will charge a percentage of the compensation or benefits you receive by using the services of the lawyer. This is the case with most worker’s compensation lawyers, car accident lawyers,  public liability compensation lawyers and so on. There is another situation where the lawyer may charge by the hour and be paid from the benefits that he gets you. In either case, you do not have to pay legal fees if the lawyer is not able to win or settle the case.

Fee Caps

Depending on the type of compensation, mostly worker’s comp, there is a cap on attorney fee mandated by the government, state or city. They come certain strings attached so make sure that you know what you are signing up for. For example, there might be a structured cap method where 25% of the first $15,000 of the benefits are charged and only 10% of the rest. Or there can be a flat percentage that can be charged which usually ranges from 10-25% for worker’s compensation. There can also be certain limitations on what the hourly rate can be.

Legal Costs

This is something most people confuse. Legal costs and legal fee are two separate things and ultimately, you will have to pay legal costs yourself. These expenses are the ones that lawyersor law firms bear going forward / furthering your case. This includes the costs for expert witnesses, getting medical records and other paperwork. Again, some lawyers may give you the option to deduct it from the award or settlement, thereby saving you the trouble of coming up with the funds up front.

To summarise, legal costs, fees and other related expenses can amount to something significant, but it largely depends on the size of the case. For the average compensation case, you should never hesitate to talk to lawyers and especially when it come to compensation, they have your best interests at heart.

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