2. Discuss the Fee structure
It is important to discuss the fee structure with your attorney, so that there are no surprises down the road. Typically, most personal injury attorneys receive 33 1/3 % to 40% of the settlement or judgment proceeds up to the first million dollars recovered. The percentage varies depending on whether the opposing party admits liability and at what point during pre-suit or litigation the case is resolved. While this fee structure is standard, as a client, it is important that you also understand that the attorneys will also be reimbursed for any costs that he or she expends. For example, if the attorney pays to receive a copy of your medical records, hire an expert witness, or pay a filing fee, these costs will be deducted from your proceeds.
Additionally, other companies may have a subrogation lien against your settlement proceeds. For example, in car accident cases, a chiropractor, doctor, health insurance provider, disability insurance provider, or other company may have a lien against the proceeds you receive from your settlement or judgment. These liens typically originate from a doctor or chiropractor who provided services to you or a third party company, such as a health or disability insurance company, that provided payments on your behalf. Your attorney must negotiate and pay off the outstanding liens as part of resolving your claim.
When considering whether to accept a settlement, you should always request a proposed settlement statement from your attorney, so that you can see the costs and subrogation liens that will be deducted from your settlement. This will allow you to see an estimate of the net proceeds that you are to receive. There is nothing worse than receiving an unexpected surprise at the end of your case.