Re: an eguitable contingency fee

10-15%

Re: an eguitable contingency fee

There are many factors to consider to properly answer this question. A million dollar settlement would warrent a smaller percentage fee than a thousand dollar settlement. How much investigation was done by the law firm? Is the settlement being reached early due to the strength, special skills/knowledge or reputation of the law firm? Is the case a clear liability rear end auto accident or a complicated products liability case? Are there medical liens and expenses that the law firm will be negotiating? Is the law firm shopping for and arranging an annuity? Is there a minor's compromise process that will be involved?

If the case is a simple policy limits matter, some firms will assist the claimants on how to handle the matter themselves and take no fee. Some firms may handle the matter on an hourly basis. In the example given, the law firm may only spend ten hours on the matter and a fee of $2,500 may be all that is warranted on a clear liability case.

Anywhere from 10% to 33% contingent fee maybe fair and adequate, depending upon the factors mentioned above.

Re: an eguitable contingency fee

There is no formula for determining a reasonable contingency fee for settling out of court with an insurance company. The amount of the settlement is an important factor. For example, if the settlement is large, then the attorney should reduce his fee substantially if the settlement is obtained in a relatively quick period of time without a lot of work. If the settlement is a small amount, the attorney should still reduce his fee because your net will be small and because it should not take a lot of work to settle a small case. Another factor to consider is how much work the attorney has to do. If the case settles without having to even file a lawsuit, then all he has to do is negotiate with the insurance carrier after obtaining and reviewing your records (ie. medical . . . etc. records). In that case, the attorney should reduce his fee substantially. You may want to work out a flat fee with your attorney so that you know exactly what your net will be when the case settles. I have reduced fees to no less than 20%. Most attorneys will not go below 25% because they are working for free until and unless there is a recovery. And, in most instances, the attorney has to advance all costs until the recovery. Good luck.