The injured party (and future Plaintiff) first discuss their case with a lawyer. If the lawyer sees any merit in the case (and when we say “merit”, we mean “money”), then the lawyer produces a contract for the two of them to sign (in legal jargon “execute”). This contract, which is usually called something like “Contingency Fee Agreement”, sets out the legally binding terms agreed to by the two parties. And once it is signed by both, the injured party is now the lawyer’s “Client”.
Now that the contract is in force, what did the Client agree to? Basically, the Client has agreed to give the lawyer a large portion of any money that they may receive from the outcome of the case. But, how much is a “large portion”?
In the recent past and in some jurisdictions today, the Client traditionally agrees to pay to the lawyer, if there is a successful conclusion to the case that amounts to a money award, one-third of the total amount if the case doesn’t go to trial (there was a pre-trial settlement), forty percent if the case goes to trial (even if there is a settlement during the trial, the forty percent fee is still applied), and fifty percent if the case had to be affirmed on appeal.
Most recently, the percentages for lawyers have gone to a set rate of forty or even forty-five percent once the lawyer takes the case, with the same fifty percent rate on appeal.
And this is not even counting the expenses, which can be substantial.
This sounds particularly one-sided, but there are three very good reasons for an injured person to hire a lawyer:
(A) If the client loses, they don’t owe anything to the lawyer…nothing. They didn’t pay the lawyer anything to represent them and then, the lawyer has to “eat” those substantial expenses. In other words, the lawyer loses money on the whole experience and the Client doesn’t lose any money, but they didn’t make any money (unless they talk to you, their independent Case Broker.
(B) The Law is complicated and a layman (a term used for one who is not schooled in a profession), stands only a very meager chance of prevailing in a court of law against a trained professional. Contrary to popular belief, while most judges will look fairly or even sympathetically on those that represent themselves (“pro se” is the legal term), they will not be swayed by their plight. In fact, it usually ends up in a quick dismissal because the party that represented themselves fails miserably in the procedural aspects of pursuing a case or in a trial setting. That is why even lawyers hire other lawyers when they are a party in a court action.
(C) Even in those rare occasions when a lawyer-less party successfully navigates their way through the legal process, the chances are that they will receive 65% less money than they would have personally received had they retained a lawyer. The injured party is still ahead of the game. In other words, if the injured party can obtain a lawyer for their case, let the lawyer do the hard work and take the financial risks.
But, after the lawyer gets their cut, what’s left for the Plaintiff?