Battle Born Injury Lawyers | July 6, 2022 | Personal Injury
A Las Vegas personal injury settlement can provide you with funds to move forward with your life, but how is your settlement split up? You know you have to pay your lawyer, but what else comes out of your settlement?
Below, Battle Born Injury Lawyers breaks down how a contingency fee agreement works and how much goes into your pocket after a car accident, truck accident, slip and fall, or any other type of personal injury incident.
What Is a Contingency Fee Agreement?
Most personal injury lawyers take cases on a contingency-fee basis. This means that they provide legal support and work on your case without any legal fees paid upfront by you. Their payment comes out of any award they are able to secure on your behalf.
If your lawyer does not recover compensation for your claim, you do not owe them any money for their legal fees. However, if they secure compensation on your behalf, they receive a percentage of the award based on the terms of the contingency fee agreement.
The Nevada Bar Association’s sample contingency fee retainer agreement provides for different percentages a lawyer receives based on how the case is resolved, including:
- 25% if the matter is resolved before filing a legal complaint
- 33% if a complaint is filed, but the case is resolved before a trial commences
- 40% if an award is made after a first trial
- 45% if the amount is recovered after an appeal
The terms of your particular contingency fee agreement will determine how much you will be responsible for paying your lawyer for their services.
Requirements of Contingency Fee Agreements in Nevada
Nevada Rule of Professional Conduct 1.5 sets out the requirements for contingency fee agreements in the state. These agreements must:
- Be in writing
- Signed by you
- Describe how the fee will be determined, including the percentage the lawyer will receive in case of a settlement, trial, or appeal
- State whether litigation expenses and other expenses will be deducted from the award and whether these deductions are made before or after the contingent fee is calculated
- Note whether you are responsible for legal expenses regardless of the outcome
After your case is concluded, your lawyer must provide you with a written statement showing how your settlement breaks down.
What Comes Out of a Settlement?
If you receive a settlement, you will get the net amount remaining after the following deductions are made:
If your lawyer took your case on a contingency fee basis and recovered compensation on your behalf, they have the right to receive the fee you agreed to at the beginning of your case. This fee will also be outlined in the contingency fee agreement.
Depending on when your case is resolved, your lawyer may have paid various costs associated with your case, such as:
- Medical record requests
- Copy fees
- Discovery costs
- Witness fees
- Phone charges
The contingency fee agreement will outline which costs you are responsible for paying for and how they are calculated.
Medical Liens and Expenses
When you were receiving medical treatment, your healthcare providers may have agreed to a lien on any recovery you made in your case to assure them of payment. You will be responsible for paying off these medical expenses and releasing the liens before receiving the rest of your settlement funds.
Additionally, you may owe your own insurance company or other insurance company (such as workers’ comp) for expenses they initially covered.
Should You Accept an Insurance Settlement Offer?
Before worrying about how your settlement will break down, consider getting advice from an experienced personal injury lawyer. Battle Born Injury Lawyers can advise you on whether you should accept a settlement offer.
Contact the Las Vegas Personal Injury Attorneys at Battle Born Injury Lawyers Today
If you or a loved one were injured in an accident in Las Vegas and you need legal assistance, contact our personal injury attorneys at Battle Born Injury Lawyers and schedule a free consultation with our legal team.