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A lot of people don’t know this but you can hire an attorney in a couple of different ways on a personal injury claim. You can pay an hourly fee, which is more of a traditional business relationship where the attorney is just paid for the time that they have involved but typically, in personal injury cases clients prefer what is referred to as a contingency fee, which allows the attorneys to be paid but only if they win the case. So if the attorneys are successful in winning the case then they receive a percentage of the total recovery in addition to being reimbursed their expenses. The contracts we have with clients we front the expenses but if we can’t win the case then we’re never reimbursed for the expenses.
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Texas Personal Injury Attorney, Frank Lyle, discusses handling fees and charges in a personal injury case. He explains that there are multiple options for hiring an attorney in a personal injury claim, and it’s important to understand them. One approach is to pay the attorney on an hourly basis, which is more aligned with a traditional business arrangement. In this scenario, the attorney is compensated for the time they invest in the case. However, in personal injury cases, the preferred method for clients is often a contingency fee arrangement.
With a contingency fee, the attorneys are only paid if they succeed in winning the case. They receive a percentage of the total recovery, along with reimbursement for any expenses incurred. In our contracts with clients, we cover the upfront expenses, but if we are unable to win the case, we are not reimbursed for those expenses. This arrangement allows clients to have legal representation without any upfront financial burden, and it aligns the attorney’s interests with the client’s goal of obtaining a favorable outcome.