If you have been injured and are thinking about hiring a personal injury attorney, knowing the financial implications of legal representation may be important to know. One of the most common questions that arises is, “How much do personal injury lawyers charge?” This question involves an assortment of fees and costs that can greatly impact your case and your finances. This article is designed to provide you with information concerning how attorney’s fees in personal injury cases (as opposed to workers compensation cases, which may be different) work in New Jersey.
Fee Structures in Personal Injury Cases
In the context of a personal injury lawsuit, the term "fee" refers to the amount that the lawyer charges for their services. Traditionally, lawyers may be retained in two different ways, an hourly fee or a contingent fee. The hourly fee is more common where the attorney is performing a service, rather than attempting to recover damages. Examples of situations where you retain a lawyer to perform services would include a house closing; writing a will; or incorporating a business. Conversely, where someone is seeking to recover monetary damages, attorneys are usually retained pursuant to a contingent fee. This would almost exclusively be the case in a personal injury lawsuit.
Pursuant to the contingent fee, the law firm will advance most, if not all, of the costs associated with bringing the case. In turn, they would receive a percentage of the recovery, after being reimbursed for the costs and expenses associated with bringing the case. Under the contingent fee, the law firm only gets paid if you are successful. If you do not recover, the attorney does not get paid and you do not owe them anything.
In New Jersey, the percentage of the recovery that the attorney receives pursuant to the contingent fee is set forth by the New Jersey Supreme Court. The percentage of the fee depends on the amount of the recovery. In New Jersey, the percentage of the attorney’s fee decreases, in regular increments, as the amount that you recover increases. In New Jersey, the attorney’s fee starts at one-third of the first $750,000 recovered. It then steps down in increments of $750,000, to thirty percent, twenty-five percent and then twenty percent. The attorney’s fee on recoveries greater than $3,000,000 are set by the Court following the case. In cases involving minors, the attorneys fee is twenty-five percent, where the matter does not proceed to trial. The fee reverts back to the regular one-third rate once trial begins.
While you are free to select either method of compensation when retaining an attorney in a personal injury matter, it is often far more cost effective to proceed under the contingent fee in light of how expensive and time-consuming litigation can be.
What Is The Difference Between Fees and Costs
It’s important to understand the difference between fees and costs in personal injury matters. Fees refer to the attorney's compensation for their legal work, while costs concern the out of pocket financial expenses related to handling the case. Pursuant to the contingent fee, the law firm representing you will advance all or most of the out of pocket expenses related to the litigation. At the conclusion of your case, the costs and expenses are paid back, before the attorney’s fee is calculated. Your attorney will provide you with an itemized list of the costs and expenses. Pursuant to the contingent fee, the law firm is responsible for the costs and expenses if the case is unsuccessful. The client is not responsible for same.
Examples of costs and expenses related to the handling of personal injury claims often times fall into the following different categories:
- Filing Fees and Court Costs
In New Jersey, as well as most other states, the Court charges a fee associated with the filing of the complaint in your case. There are also additional fees associated with the filing of various motions during the pendency of your matter. In some cases, these fees can be recovered as part of your case, but in most personal injury matters they cannot.
- Litigation Expenses
These include fees that are associated with the legal process. In addition to Court costs and filing fees, they may include the costs associated with the serving of subpoenas and other legal papers; depositions; trial exhibits; or any other out of pocket expenses associated with the prosecution of your case.
- Expert Witness Fees
Witnesses generally fall into one of two categories: lay witnesses and expert witnesses. Lay witnesses are often fact witnesses who may testify about what they may have observed. Generally, they are not permitted to give testimony in the form of opinions. Expert witnesses, on the other hand, are individuals who possess special knowledge on a particular subject, greater than that which is known by the general public. If qualified as an expert witness, they may offer opinions on subjects within their specialized field. Examples of expert witnesses include medical care providers; engineers; accident reconstruction specialists; and other people who have specialized knowledge on a particular subject.
The costs and fees associated with expert witnesses can be surprising, sometimes reaching into the thousands or even tens of thousands of dollars. (This depends on their field of expertise and the complexity of their testimony.) Their fees may include the costs associated with their investigation of the matter; their research and writing of their reports; and if necessary, the costs associated with their coming to Court and testifying.
- Deposition Costs
Depositions involve the taking of sworn testimony, under oath, from a witness. The testimony is recorded by a stenographer, who then types it into as booklet called a transcript. The longer the testimony, the greater the cost. Court reporters are typically paid by the page. There may be additional expenses associated with the taking of depositions where the deponent Is not a party or is an expert witness. Videotaped depositions can further increase the cost of the deposition. The party taking the deposition normally bears to cost of same. While they may be expensive, depositions are often times a necessary and important part of the litigation process.
- Investigation and Information-Gathering
Costs associated with gathering evidence and investigating the case include obtaining medical records, police reports, and possibly even hiring private investigators. These costs are usually less compared to other expenses, but can be imperative for building a strong case.
What Influences Legal Costs And Expenses
When thinking about the amount of costs and expenses associated with the preparation and litigation of a personal injury lawsuit, it is important to understand that a number of different things influence the overall cost of pursuing your case. The complexity of your case can impact the expenses associated with properly preparing and pursing your case. Because these expenses can be substantial, the contingent fee is often times the best option of for most people.
More Considerations
When trying to figure out whether to hire a personal injury lawyer, give serious thought to the overall value they bring to your case. Though legal fees and costs are a part of the equation, the expertise, negotiation skills, and advocacy provided by a skilled attorney can greatly affect the outcome of your case.
For example, in cases involving dog bite attacks or other personal injury claims, a knowledgeable attorney can deal with complex legal challenges and make sure that you receive fair compensation for your injuries.
What to Expect From Your Initial Consultation
During your initial consultation with a personal injury attorney, you will have the chance to discuss how much personal injury lawyers charge and what to expect throughout your case. This meeting is instrumental for understanding the attorney’s fee structure and how it applies to your specific situation.
Prepare for the consultation by gathering relevant documents, like medical records, accident reports, and any correspondence related to your case. The attorney will review these documents to assess the merits of your case. This is also the time to ask whether they charge hourly rates or work on a contingency fee basis.
Also, use the consultation to gauge the attorney’s experience and approach to handling cases similar to yours. A clear and open discussion about fees and costs will help you make the best possible decision about whether to proceed with their representation.
Dealing with Legal Costs with Confidence
Knowing how much personal injury lawyers charge is necessary when handling the complexities of a personal injury case. It involves not just the attorney's fees, but also other costs associated with the prosecution of your case. By having clarity on fee structures, additional expenses, and how these all influence your case, you can make better decisions about your legal journey.
Levinson Axelrod, a leading firm in personal injury law, provides guidance on dealing with these costs. If you’re giving any thought to pursuing a personal injury claim, our experienced team can help you to better understand the financial aspects of your potential case and see to it that you’re well-prepared. We are committed to transparency and helping you achieve the best possible outcome in your case.
For expert legal advice and to discuss your case in detail, call Levinson Axelrod at (732) 440-3089 or use our convenient online form today.