The key goal of hiring a lawyer for a personal injury case is to secure compensation for you. Concerning who gets paid first – the lawyer or the medical bills – various factors play a role. Factors like the specific terms of the lawyer’s retainer agreement, the laws in your jurisdiction, and the type of compensation you receive are among the key elements influencing the decision.
In personal injury cases, medical bills are an essential aspect of the overall compensation package. The bills represent the expenses that have incurred for medical treatment related to your injury. Depending on the severity of the injury and the required medical interventions, the amount of the bills will greatly vary.
Role Played by Lawyers in Personal Injury Cases
In personal injury cases, lawyers have a responsibility to advocate for the rights of their clients. They are also obligated to tirelessly work to ensure their clients receive fair compensation for their injuries. This is so because they are well-versed in the legal aspects of such cases and have the expertise to navigate the legal system, which is often complex.
When you hire a lawyer, they become your legal representatives and handle all aspects of your case. This includes gathering evidence, negotiating with insurance companies, and representing you in court if necessary. The ultimate goal of all this work is to secure the maximum possible compensation for your injuries.
Payments of Lawyers
Typically, lawyers work on a contingency fee basis when it comes to personal injury cases. What this means is that they only get paid if the case is a success. If they win a case, their fees will typically be a percentage of the compensation that their client, you, receive. Such an arrangement enables people who lack the financial means to afford legal representation to still pursue their case.
Contingency fees offer an incentive for lawyers to diligently work on a case, as their payment is contingent on the outcome. In case a lawyer is unable to secure compensation for you, they fail to receive any fees. This is an arrangement that is well-suited, favorable, and in alignment with your interests as parties to the agreement.
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The specific range for lawyer fees varies depending on the complexity of the case, the expected duration of the legal process, and the potential compensation amount. Due to this, it is crucial to discuss the fee structure with the lawyers prior to hiring them. This transparency regarding the fees would help you understand the financial implications of pursuing the case. In the process, the lawyer will provide you with a clear breakdown of the fees and any additional costs you might incur throughout the process.
Why are Medical Bills Important
In-person injury cases, medical bills serve as a representation of the incurred expenses due to the injury and as evidence of the extent of the injury and necessary treatment. These bills assist in creating the economic damages that you have suffered due to the accident.
In the case of personal injury, compensation is awarded to cover various damages. These damages include medical expenses, lost wages, pain and suffering, and future medical costs. Also, medical bills are a key determinant of the amount of compensation that you would receive.
Do Lawyers Get Paid Before Medical Bills
Generally, medical bills are paid regardless of a case outcome. For the fees of a lawyer, they are paid from the received compensation. So, do lawyers get paid before medical bills? No, lawyers are not paid before medical bills. The amount of medical bills is a determinant of the compensation amount. This implies that the medical bills have to be determined and sorted and then the lawyers paid.
For instance, in the case of a fee structure based on the contingency plan. With the lawyers obligated to get a percentage (usually 30 – 40%) of the final settlement or verdict as their fees, they will have to win the case first and the medical bill determined. In this case, the payment would come directly from the settlement funds after medical bills and other liens are paid.
Also, in cases where payment is on an hourly agreement, medical bills will have to be paid first. In cases like this, the client is responsible for paying the lawyer regardless of the outcome of the case. Even despite it being so, medical bills have to be paid first from the settlement funds, then the lawyer’s fees.
Payment Structures for Lawyers
In personal injury cases, lawyers are often paid using the following payment structures:
- Recovery percentage (contingency fee) – In this structure, the calculation for lawyer fees is done as a percentage of the received compensation. This is the most common payment structure in personal injury cases.
- Hourly rate – Under this structure, lawyers charge an hourly rate for their services. Although it is less common for cases involving personal injury, there are people/lawyers who prefer it. The key reason why people tend to avoid it is because it is financially burdensome for clients facing medical expenses and lost wages.
- Flat fee – Though not common, lawyers might agree to a flat rate for their services. This payment form is more common for straightforward cases where the expected workload is relatively predictable.
Final Remarks
When a personal injury case judgment or settlement goes in your favor, the funds are distributed following three steps. First, any outstanding medical bills are directly paid, to healthcare providers. Next, the lawyer’s fees, as outlined in the retainer agreement are paid. Lastly, you get to receive the remaining amount.
N.B: Every personal injury case is unique and the specifics of your situation do vary. Due to this, make an attempt to consult with a legal professional to provide you with personalized guidance. This will enable you to make an informed decision that protects your rights.
