What Is the Average Cost of Hiring a Motorcycle Accident Lawyer?
Most motorcycle accident lawyers in New Jersey work on a contingency fee basis, meaning they are paid as a percentage of the final settlement or judgment award won for the client – typically at a rate that ranges from 33 to 40 percent. With this arrangement, you pay no upfront costs and will not be charged out of pocket to hire a motorcycle accident attorney.
How Do Contingency Fees Work?
The majority of personal injury lawyers use contingency fees to make legal representation affordable for people who have been injured in serious accidents and are already facing significant financial strain.
When a motorcycle accident lawyer says they work on a contingency fee basis, this means there is no retainer or hourly fee. Instead, the fee is taken as a predetermined percentage of the total amount collected on behalf of the client, and only at the conclusion of the case.
With a contingency fee arrangement, a client won’t pay anything for work done on a motorcycle accident case if it does not result in a financial recovery. Fees are paid only if the lawyer wins the case.
What Is the Average Contingency Fee Percentage in New Jersey?
The average percentage charged in a contingency fee arrangement for a motorcycle accident case is 33.33 percent, or one-third of the settlement or verdict achieved. However, the percentage can vary based on the experience level of the attorney, the complexity of the injury claim, and whether a settlement is reached or the case has to go to trial.
If the claim leads to financial compensation for the victim’s injuries and losses, the pre-agreed-upon percentage will be taken as the attorney’s fee. If a motorcycle accident claim results in a $200,000 settlement, for example, a 33.33 percent rate would mean $66,660 goes to the attorney.
New Jersey Laws on Contingency Fees
In New Jersey, Supreme Court rules say that “the retainer agreement is presumptively unreasonable when a lawyer charges the greater of a contingent fee or a regular hourly fee that is payable even if there is no recovery.” In other words, if there is no financial recovery for the client, the personal injury lawyer cannot charge the greater of the two fees.
In addition, the attorney’s fee will be based on the net recovery, meaning the total amount recovered for the claim minus the victim’s costs, expenses and interest charged on a judgment. State law says there is no cap on contingency fees, but a lawyer should notify a client when the fee percentage is higher than 33.33 percent.
Other Payment Arrangements
Although it is less common, a motorcycle accident lawyer may also charge a flat rate or an hourly fee for their services in New Jersey. These fee structures are more common among other types of attorneys, such as criminal defense and family law lawyers, who charge for specific services or amounts of time.
Keep in mind that the attorney’s fee may not be the only expense taken out of your settlement or judgment award. You may also be responsible for paying for costs such as administrative and court fees, filing fees, expert witnesses, and copies of documents. Be sure to communicate clearly with your motorcycle accident lawyer about fees and costs before signing a contract.