Whenever you are using services of a personal injury lawyer in Toronto GTA, you are entitled to pay his professional fees under specific agreements. There are provisions in the legal system that allows you to hire an experienced lawyer without paying the fees on an instance. You can enter into a contingency fee agreement with your lawyer. Under this agreement, he can charge you with a kind of conditional fees which is legitimate after the final settlement of the case.
What is a Contingency Fee?
The contingency fee is a conditional liability of the party hiring the lawyer. It is a future liability to pay the agreed amount after the outcome of the settlement or the final verdict by the court of law. This agreement involves clauses which creates an obligation to pay a certain percentage of the compensation entitled to the plaintiff. The lawyer can charge up to 40% of the proceeds recovered. In certain cases, it may be
of the compensatory damage. These percentages can be altered by further negotiation that typically depends on the stage of your case.
Getting Compensatory Damage and Paying the fee
Stage 1: Before Filing a Lawsuit
Unlike most of the civil cases, a personal injury case may not necessarily be started with a lawsuit. Most likely, your lawyer will send a demand letter to the defendant explaining the injuries caused and the claims. If the defendant agrees to the terms, the case can be settled by paying the compensatory damage and the lawyer can be paid to the agreed share. Negotiations can be made by a counteroffer in case the defendant is not agreeing with the terms.
Stage 2: After Filing a lawsuit
If sending a demand letter does not bring any fruitful result, you may approach the court to file a complaint. In this case, your lawyer has a higher chance of getting the highest percentage of compensatory proceeds allowed by state regulations. The compensation cheque is sent to the lawyer instead of the plaintiff after the final verdict.
Stage 3: After Receiving the Cheque
After receiving the cheque, the lawyer deducts his share and sends a detailed explanation of the money deducted. Normally, a personal injury lawyer in Toronto GTA deducts the relevant costs and expenses such as medical reports, police record, postage, and witness fees, etc. from the compensatory damage.
Sometimes it happens that your attorney wants to terminate your case. In that case, you are not required to pay his fees at all.