How Are Personal Injury Lawyers Paid

Ways Of Paying Personal Injury Lawyers

Personal injury lawyers or attorneys operate under the law of tort. One may hire a personal injury lawyer to represent them in a court of law or under legal obligation. They are used to claim damages caused by an individual, company.corporate or association who have caused injury to another either physically or psychologically.

A plaintiff will certainly need a personal injury lawyer so that they can be fully represented in a court of justice to claim for damage.

A defendant also has a right to be represented by such a lawyer in a case against them. They have to be aware of the fees and charges that may be incurred in hiring one as they are only rendering their services for the benefit of the plaintiff.

There are various ways ways to which you can opt to pay a personal injury lawyer.

They may include:



This is quite common on the side of the defendant but this is not to say the plaintiff may not also opt for this.

A retainer requires one to deposit a certain agreed amount of money in a specific account in the form of payment before a case is heard. This acts as an assurance of payment to the personal injury lawyer when the case is adjourned.

Once the lawyer has offered or rendered their service to the one who hired them and the ruling has been mentioned the lawyer can now withdraw the money as his payment. This form of payment ties the lawyer to perform their duty until the ruling is mentioned as this is the only time they can get payments.

They cannot leave in between the case proceedings as they will not get paid.


Mixed hourly rates

A mixed hourly rate is paid by the plaintiff even if they end up losing the case to the other side. It involves a payment based on the number of hours worked by the personal injury lawyer in reduced percentages.

However, it’s only paid after the case is heard and a ruling has been made. In addition to the payment, the lawyer also receives a bonus where the case has been won. This is not a token but they actually have a claim to the bonus if they work with this sort of payment.

The bonus may be on an agreed percentage based on the hourly rates or also a percentage of the total figure of the whole payment. This method encourages the lawyer to do more as there is an extra payment.


Contract payment

Either the plaintiff or defendant may hire a personal injury lawyer based on a contract basis. The contract clearly stipulates the terms of payment and to what extent.

It should stipulate the amount of a win and a loss. Here there has to be an agreed amount of payment by both sides so that the contract can become mutually binding and be signed.

The good thing about the contract payment is that none of the parties can breach it as they are bound by it and if so they are liable for breach of the contract.


Sliding scale contingency

The sliding scale works with percentages that go higher as the case proceedings go on. As you start the case the percentage payment of the personal injury lawyer may be at 10% due to just bringing it into court.

Filling the case into court may not be quite expensive but once the case starts you start counting additional scales to the percentages.

The longer the case takes the higher the percentage gets. This method is slightly more expensive and is used in short cases where you are quite sure the case is not complicated.


Contingency hourly rate

This type of payment only applies after the plaintiff has received damages from the defendant or say has won the case.

It’s effective on the side of the plaintiff as they do not actually use their own money to pay but the amount of claim after the case.

The personal injury lawyer will receive payment based on the number of hours worked on the case made to a percentage of damages obtained.

It’s important to note that payment on the lawyer’s side is only made after the claim.

This make is quite disadvantageous if the case is lost as they will not receive. This has made it quite an uncommon arrangement between the plaintiff and lawyers.


Just who pays the personal injury lawyer?

Its also quite good to ask this as you get into such a case. You should know where the money should be drawn from. Who pays the lawyer for the service they render?


Plaintiffs side

On the plaintiff’s side, he is the one who is claiming injury and wants to bring the case to court by use of a personal injury lawyer.

This hence means that they are seeking for this service and need legal representation in court or any other authority of justice. The plaintiff is hence liable to payment of the personal injury lawyer on an agreed terms basis on which method to use.

As they seek the lawyer they should first agree on which way to pay based on the case type and agree on it.


Defendants side

The defendant here is being sued for injury caused but is only guilty unless it’s proven. The defendant may hire a lawyer of such kind as an individual or company.

This hence means that there can be two ways to pay the lawyer.

First, if the individual has been sued on the basis of he is the one who caused the injury to a certain person or body corporate, he is the one who is to pay the personal injury lawyer.

Secondly, if its an individual who is brought to court or sued because the company they work for caused the injury, they may opt for an insurance policy.

The legal defense is to be provided by the insurance policy as they are working on behalf of the company.

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