ADVICE TO CLIENTS
What is a Contingency Fee?
Don't Get Caught Underinsured
WHAT IS CONTINGENCY FEE?
Q. What is a contingency fee?
A. A contingency fee is one where the lawyers get paid only if you recover money damages. The fee is a percentage of the recovery.
Q. What will it cost to speak with a lawyer?
A. At our firm you get a free initial consultation. It will cost you nothing to speak with us regarding your potential claim.
Q. How much is the percentage?
A. A contingency fee can be any percentage as long as it is fair. Fairness is determined by the complexity of the individual case. Typically, contingency fees are from 1/3 - 40% of the total recovery.
Q. Does the contingency fee also include expenses?
A. No. Expenses are separate from the fee. The fee is for the time and knowledge of the lawyer. The expenses are the costs to pursue the claim.
Q. How much are the expenses in a typical case?
A. Expenses vary depending on the size and complexity of the case. Expenses typically range from $50 to $500 for a case which is settled with the insurance company before a lawsuit is filed. If we need to file a lawsuit, the costs vary from $500 to several thousand dollars, and more. The defense and the recoverable damages effect the amount of the expenses.
Q. What if I cannot afford to pay for the expenses?
A. Our firm will advance expenses for you if you are unable to pay for your own expenses. We keep an account of the expenses and charge no carrying or interest costs on the expenses. We inform you of all major expenses. When the case is successfully concluded, we deduct the expenses from the recovery.
DON'T GET CAUGHT UNDERINSURED
After over two decades of my practicing law in Massachusetts, one of the most frustrating things is telling my clients who have been seriously or permanently injured in an automobile accident that there is insufficient insurance coverage for their damages. This is especially true for victims of automobile accidents.
For automobile insurance policies issued in Massachusetts, many clients have only the minimal $20,000 coverage. This means that if you are the victim of an automobile accident and the other vehicle has a minimum policy, you will not be able to recover more than this amount.
Having minimal coverage can be costly: if you are injured by another driver, his or her policy will reimburse you at least in that amount for medical costs, lost wages, painand suffering and disability periods. If his policy is minimal, the most you can get for pain, suffering and any permanent injuries is $20,000. However, if your damages exceed that value, and you have a $20,000 underinsurance policy on your own vehicle, you will get nothing from your insurance company for your pain and suffering. However, with additional underinsurance, you will be able to seek additional compensation.
Underinsurance coverage provides additional benefits, but only to the extent that your policy coverage exceeds the other driver's bodily injury coverage. For example, if you are seriously injured by a negligent driver with the minimum $20,000 coverage, and your case is worth $100,000, if both the negligent driver and you have minimal policies, you will collect only $20,000. However, if you have additional coverage of $100,000, you will be able to collect $100,000 -- $20,000 from the negligent driver's policy and $100,000 - $20,000, or $80,000 from your policy.
The same rational applies to uninsurance coverage. This comes into play when you are injured by an uninsured or hit-and-run driver. A minimum of $20,000 of uninsurance coverage is mandatory in Massachusetts, but more coverage may be necessary to provide adequate protection if you are seriously injured, as indicated above.
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