What percentage do personal injury lawyers take from a settlement

Contingency fees allow anyone, regardless of their finances, to have a personal injury lawyer for their injury case. No upfront money is paid to a lawyer and the law firm will pay for all expenses associated with preparing a case and will not be paid back unless they help the client win their case. So, really, there is very little risk in hiring a lawyer.

Contingency fees allow you to choose the lawyer of your choice. You can choose who you think is the best personal injury lawyer in Kansas City, or you can choose one that seems familiar to you because they advertise a lot. The choice is yours. Choose wisely. Any lawyer with a checkbook is allowed to advertise.

Now, it could be that you don’t need a lawyer. Perhaps your case is pretty straightforward, and your injuries are not severe. If that is the case, an ethical lawyer will explain that they are unlikely to add more value to your case.

Before getting into what the fees are, it is important for you to know that an insurance industry study found that those represented by a lawyer received, on average, a much larger settlement than those who were not represented. In fact, the study said that represented clients received up to 3.5 times as much!

Still, we understand that is can feel like you are getting less than you are entitled to if a law firm takes a chunk of your settlement. So, maybe it is helpful to visualize it as pies, as shown below.

On the left, a person without a personal injury lawyer keeps all the pie. On the right, the pie is noticeably bigger, but a law firm that represented a client gets to keep a portion of it. Which client got more pie?

For workplace injury claims, also known as workers’ compensation claims, 25% is the most common contingency fee charged by workers’ compensation lawyers because that is the limit that the law allows. Even if the matter is not amicably settled and goes to court, 25% is all that will be awarded to the law firm, in addition to any expenses they incurred in preparing the case.

For other types of personal injury cases, often called civil matters, the customary contingency fee is 33.33% if the matter is settled, and 40% if the matter must be tried in court. Such fees would apply to car accidents, wrongful death matters, dog attacks, medical malpractice, nursing home abuse and neglect, defective products, slip and falls, 18-wheeler accidents and more.

Speaking of court. Did you know that 99% of personal injury cases settle and don’t go to court? The reason is that going to court is expensive and time consuming for everyone involved. Neither side wants to go to court if they don’t have to. Also, going to court is inherently risky. Usually, it’s an all-or-nothing proposition. Either you win and get what you deserve (and sometimes more), or you lose and you don’t get anything. If you lose, the law firm that represents you won’t get paid back for their expenses and the time that they’ve spent on your case.

It’s understandable that most law firms don’t have lawyers with significant trial experience. For a lot of firms, going to trial doesn’t happen very often.

Still, a great law firm will stand up for its clients and go to trial if necessary. Edelman & Thompson has gone to trial more than 138 times since 2011, and won. This is in stark contrast to some other law firms who also advertise on TV and billboards like we do. As shown in this chart, they almost never go to court. Again, any law firm with a checkbook can advertise.

Law firms can charge whatever contingency fee they like. One Kansas City personal injury firm is known to charge 40% on settlements. They are a high-volume firm. They maximize their profits by quickly settling large volumes of cases and taking their fee. It’s more of a cash flow business model. We think that model is at odds with doing what is best for the client. To read more about Edelman & Thompson’s fees, click here.

Yes, fees are an important consideration when you are buying anything. However, another consideration is your health. How well are you able to heal from your injuries? You’ll have to live with your health for the rest of your life. At Edelman & Thompson we believe that your health is more valuable than any settlement we can help you get. So, we work hard to ensure our clients get the best medical evaluations and treatments available and that our clients reach maximum medical improvement. Our concern for our clients’ health is one reason we tend to bond with our clients. We are with them through the healing process and cheering them on, giving them greater confidence in the ultimate outcome of the bad situation that upended their lives.

Choose wisely.