What Are The Guidelines For Contingency Fees For Florida Personal Injury Attorneys?

Technically a contingency fee is a fee which is not paid unless a certain result happens. With personal injury law cases this means that there must be a monetary settlement for the injured person.

The state courts and legislatures regulate very strictly the amount injury lawyers can charge their clients for a contingency fee. Many states have set up specific schedules for fees that must be followed. If the guidelines are not followed the personal injury lawyer could lose his entire fee or even risk disbarment.

The Florida Supreme Court and the Florida Bar have adopted a maximum fee schedule that attorneys are permitted to charge in contingency fee cases. Generally speaking, contingency fees may not exceed 40% of the first $1 million, 30% of the amounts recovered between $1 million and $2 million, and 20% of all amounts over $2 million. If an appeal is filed the fee may rise 5% more. There are other limitations, exceptions, and special circumstances where this may vary. The Florida Bar has also adopted a Statement of Client's Rights, which must be followed by any attorney handling a case on a contingency fee. The primary Florida Bar Rule on contingent fees is Rule 4-1.5, Florida Rules of Professional Conduct.

In November 2004, the doctors in Florida paid millions of dollars to collect signatures and place on the state election ballot a proposal to amend the state constitution to limit attorneys fees in medical malpractice cases to 30% of the first $250,000 of a recovery, and 10% of all amounts recovered over that. This proposed amendment was called "Amendment 3."

In any case, the percentage fee is determined based on the net sum recovered, meaning that the expenses that the lawyer advanced for the case are taken "off the top" and reimbursed to the lawyer. The expenses get subtracted from the settlement amount and then the fee percentage is applied to the net amount.

Some injury lawyers will try to charge an hourly rate in addition to the contingency fee they hope to collect. Most attorneys do not do this but you should clarify these issues with your attorney when you hire him.

Many states such as New York have completely separate schedules for medical malpractice cases. In any case you should completely understand the payment terms of the personal injury attorney you hope to hire. If you have doubts get a second opinion on the agreement. It should go without saying that you should ask for a complete explanation of your legal fee arrangement.

For more information on contingency fees and personal injury lawyers in the Fort Lauderdale Florida area please see Best Injury Lawyer Fort Lauderdale Directory.

To view videos, articles, listings and reviews of Fort Lauderdale injury lawyers see Best Injury Lawyer Fort Lauderdale Directory Of Personal Injury Attorneys.

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