Accidents happen, and sometimes they result in personal injuries- it is an inevitable fact of life. When such personal injuries are caused by someone else’s negligence or actions, the victim has the right to take legal actions against the responsible party to seek compensation. In Kentucky, one way of financing such legal action is through a Contingency Fee Agreement.

Understanding a Contingency Fee Agreement

A Contingency Fee Agreement is a contract between a personal injury lawyer and the client. Its purpose is to finance a personal injury lawsuit by allowing the client to pay the lawyer a percentage of the settlement or award received if the case is successful. If the client does not receive any compensation, the lawyer does not get paid.

What a Contingency Fee Agreement Covers

A Contingency Fee Agreement typically covers all of the lawyer’s services, such as legal representation, investigative work, court fees, and other costs associated with the case. This means that the client does not have to pay any out-of-pocket expenses for the lawyer’s services and that the lawyer bears the financial risk of the lawsuit.

How Contingency Fees Work

Contingency fees are usually calculated as a percentage of the total settlement or award received by the client. The percentage varies based on the complexity of the case, the likelihood of success, and the amount of work required to pursue the lawsuit—typically, contingency fees range from 33% to 40% of the settlement or award.

Pros and Cons of Contingency Fees

Contingency fees can benefit the client in many ways. For example, clients who cannot afford to pay for legal fees upfront can still seek legal representation and pursue compensation for their injuries. This provides clients with easier access to justice and legal representation.

On the other hand, contingency fees may result in lawyers prioritizing their financial interests over their clients’ best interests. For example, a lawyer may settle a case quickly to receive a guaranteed fee, even if it means accepting less compensation than the client could have obtained through a more extended legal process.

Limitations of Contingency Fees

There are some limitations to the use of contingency fees in personal injury cases in Kentucky. For instance, the Percentage of Recovery Rule states that the lawyer cannot take more than one-third of the total settlement or award received by the client. This rule is designed to protect clients from excessive fees and ensure that they receive a fair share of the compensation received.

Conclusion

A Contingency Fee Agreement is an excellent way to finance a personal injury lawsuit if you have been injured by someone else’s negligence. It provides clients with access to legal representation and justice, even if they cannot afford to pay for legal fees upfront. However, before signing a Contingency Fee Agreement, it is essential to understand its terms and conditions and discuss the pros and cons with your lawyer to ensure that you make an informed decision.