After a person suffers an injury due to someone else’s negligence, the decision to hire an attorney is a critical step towards seeking justice and compensation. The foundational document that formalizes this crucial relationship is the attorney-client agreement. This is more than just a piece of paper; it is a legally binding contract that outlines the entire scope of the relationship, detailing the lawyer’s promises, the client’s responsibilities, and, most importantly, how the attorney will be paid. Understanding the key sections of this agreement is essential for any client to feel confident and informed as they begin the legal process.

The most unique and defining feature of a personal injury attorney-client agreement is the contingency fee arrangement. Unlike in many other legal fields where a lawyer charges a high hourly rate, in a personal injury case, the attorney’s fee is contingent upon a successful outcome.

The principle is simple and powerful: If you don’t win, you don’t pay any attorney’s fees. This model provides access to justice for individuals who would not otherwise be able to afford to hire a lawyer to take on a large insurance company or corporation. The lawyer agrees to take on the full risk and expense of the case upfront. In exchange for this risk, the agreement stipulates that if the case is won—either through a settlement or a court verdict—the attorney will receive a pre-agreed percentage of the total recovery. This percentage can vary but is often in the range of one-third (33.3%) of the final settlement amount. This structure aligns the interests of the attorney and the client: the more money the client receives, the more the attorney earns.

The agreement must clearly define the scope of the attorney’s representation. It will specify that the lawyer is being hired to handle the claim arising from a particular incident on a specific date. It is important to understand the distinction the contract makes between attorney’s fees and case costs.

• Attorney’s Fees: This is the percentage-based payment to the lawyer for their time, labor, and expertise.
• Case Costs: These are the out-of-pocket expenses required to pursue the case. These costs are often financed by the law firm and then deducted from the final settlement. The agreement should clearly state that these costs will be paid back to the firm from the client’s share of the recovery.

  Specific examples of case costs include:

  • Court filing fees
  • Fees for obtaining medical records and police reports
  • Costs for expert witness testimony (e.g., a medical expert or an accident reconstructionist)
  • Deposition and court reporter fees

  A well-drafted agreement will provide a clear example of how the final settlement money is distributed: first, the attorney’s fees are deducted, then the case costs are reimbursed to the firm, and the remaining amount is the client’s net recovery.

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