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Your Contract With Your Personal Injury Lawyer

You've decided to make a personal injury claim, and you've chosen to work with a lawyer to get the best outcome. Now you'll need to formalize the attorney-client representation relationship. That means evaluating the proposed "fee agreement," which is a contract in which the lawyer agrees to represent you, and you agree to abide by certain terms.

As you review the fee agreement and its different provisions, you are largely on your own (the lawyer isn't yet your lawyer). So this article will offer you some tips on what to expect and what you need to consider before you sign. After all, a contract is a binding legal document, and you will be held to its terms.

Will the Lawyer Represent You Throughout Your Case?

The need to answer this question may come as a surprise, but with the current state of advertising, networking, and interconnection in the legal professionals' community, there are many lawyers that simply broker a case to other lawyers.

If you want to make sure the lawyer you are considering will be the lawyer that actually takes your case to trial if it comes to that, all you need to do is ask. You may also want to ask the lawyer about insurance claims versus lawsuits, how many personal injury cases the firm takes to court, and what litigation experience the lawyer has -- and it doesn't hurt to inquire about the outcomes of these cases. Did they go all the way to a judgment or was there an injury settlement before that? If judgments were entered (a jury decided for the plaintiff or defendant, in other words), what is the attorney's "record" in these cases?

Money Matters: Contingency Fees and Costs

In most types of personal injury cases, the contract for services you are offered will almost always contain a contingency fee clause, which sets a percentage that the attorney will receive as payment out of any settlement or court award you receive. (Learn more about why most personal injury cases settle.)

The typical contingency fee percentage is around 33 percent, but that percentage may be higher in more complex cases, such as medical malpractice lawsuits. Some attorneys also include a "sliding scale" contingency fee in their contracts, where the percentage the attorney receives increases if the case goes to trial.

Understand that any costs involved in pursuing your case will usually come out of your share of the recovery. (Learn more about costs versus fees in a personal injury case.) And if there are claims for reimbursement by your health insurer, that claim will likely also come out of your share of the recovery. The same is true if there are claims for payment from health care providers such as chiropractors or physicians.

Since you bear these costs, the attorney may not have the same incentive to negotiate these expenses that you might have. So be as vigilant as you can when it comes to keeping the costs of your personal injury case under control.

In some cases this issue may create a conflict of interest. If your attorney gets frequent referrals of new cases from your chiropractor, for example, he or she may not want to rock the boat by questioning the size of your medical bills. You must be on your own watch in these situations and ask about any prior relationships that may pose a conflict.

(Check out our reader survey results on the costs and benefits of hiring a personal injury lawyer.)

Authority to Settle

Any attorney representation contract in a personal injury case should include a provision that addresses decisions on settlement. Of course, you should be realistic in evaluating your case, and always listen to your attorney's advice when it comes to settlement offers that are reasonable, but final decision-making should rest with you. Look for any language in the contract that bears on the question of settlement authority.

What About the Appeals Process?

If litigation plays out, your case goes to trial, and you are not successful, the contract should address the issue of appeal. Some lawyers do not provide appellate services. Some do, but with a different fee schedule. Ask about the costs and fees associated with an appeal of an adverse decision in your case, so you have all the facts.

If There's a Problem

If you get into a disagreement about the service contract, or if you suspect that something unlawful or unethical is afoot, you do have recourse. The official lawyer licensing organization (the "state bar") in most states has a system set up to specifically address these kinds of issues. The representation contract itself may include language on how these matters will be handled, so review those provisions carefully. Learn more about resolving problems with your personal injury lawyer.

From Lawyers   Reviewed by David Goguen, J.D., University of San Francisco School of Law

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