In Florida, lawyers handling cases for personal injury, property damage, or wrongful death on a contingency basis must adhere to specific rules. Here’s a simplified guide on how these fees operate according to the Florida Bar’s regulations.
What is Contingency Fee in Florida Personal Injury Cases?
A contingency fee in Florida personal injury cases is a payment arrangement where the lawyer’s cost is dependent on winning the case or securing a settlement. Instead of charging an upfront fee or hourly rate, personal injury lawyers in Florida receive a percentage of the recovered amount.
This arrangement allows clients to pursue legal action without the burden of out-of-pocket costs, as the lawyer only gets paid if they successfully obtain compensation for the client. It aligns the interests of the lawyer and client, ensuring the lawyer is motivated to achieve the best possible outcome.
Key Provisions in Contingency Fee Agreements in Florida
According to the state law regulating the Florida Bar, the following are some of the key provisions related to personal injury contingency fee caps in Florida:
Client’s Rights and Understanding
- Before signing the contract, clients must receive and read a statement outlining their rights.
- Clients must sign this statement and keep a copy for reference during the legal representation.
Right to Cancel
- Clients have the right to cancel the contract within three business days of signing.
- Cancellation must be in writing, and clients won’t owe any fees for work done during this period.
- However, lawyers can be reimbursed for any funds they’ve reasonably advanced on behalf of the client.
Florida Contingency Fee Limits
The fees a lawyer can charge are capped based on the amount recovered and the stage of the case:
Before Filing or Arbitration
- 33.33% of any recovery up to $1 million.
- 30% of the portion of recovery between $1 million and $2 million.
- 20% of the portion of recovery exceeding $2 million.
After Filing or Arbitration
- 40% of any recovery up to $1 million.
- 30% of the portion of recovery between $1 million and $2 million.
- 20% of the portion of recovery exceeding $2 million.
If Defendants Admit Liability
- 33.33% of any recovery up to $1 million.
- 20% of the portion of recovery between $1 million and $2 million.
- 15% of the portion of recovery exceeding $2 million.
Post-Judgment or Appeal
- An additional 5% can be charged for any recovery after an appeal or other post-judgment actions.
By following these Florida legal fee cap guidelines, both lawyers and clients in Florida can enter into contingency fee agreements with a clear understanding of their rights and obligations, ensuring transparency and fairness in the legal process.
Special Provisions for Medical Malpractice Cases
For cases involving medical malpractice liability, Florida lawyers must follow additional specific rules regarding contingency fees. These rules ensure that clients are fully aware of their rights under the Florida Constitution.
Provision of Constitutional Language
Lawyers must provide clients with the text of Article I, Section 26 of the Florida Constitution in writing.
Oral Explanation
Lawyers must also orally inform clients about their rights regarding contingency fees in medical liability cases.
Client Entitlements
First $250,000:
Clients are entitled to receive at least 70% of the first $250,000 in damages. This amount is exclusive of reasonable and customary costs, and it applies whether the damages are received through judgment, settlement, or other means, regardless of the number of defendants.
Damages Over $250,000:
For damages exceeding $250,000, clients are entitled to 90% of the amount, exclusive of reasonable and customary costs, regardless of the number of defendants.
These provisions ensure that clients in medical liability cases retain a substantial portion of any damages awarded, promoting fairness in the attorney-client relationship.
Advantages of Working on a Contingency Fee Basis in Florida Personal Injury Cases
Choosing a lawyer who works on a contingency fee basis offers several advantages for clients in personal injury cases. Here are the key benefits:
The Lawyer has “Skin in the Game”
When a lawyer agrees to a contingency fee arrangement, they only get paid if they win the case or secure a settlement. This means the lawyer is financially invested in the outcome, motivating them to work diligently and pursue the best possible result for their client.
Demonstrates Lawyer’s Confidence
Agreeing to work on a contingency fee basis shows the lawyer’s belief in the strength of the case. It signals to the client that the lawyer is confident enough in the merits of the case to take the financial risk of only getting paid if they win.
Eliminates Financial Risk for the Injured Victim
Contingency fee arrangements remove the financial burden on the client. If the lawyer does not win the case, the client does not owe any legal fees. This “no win, no pay” structure allows injured victims to seek justice without the fear of incurring legal costs they cannot afford.
Steps to Take When Seeking Legal Representation in a Personal Injury Case in Florida
Understand Your Rights: Before signing a contingency fee agreement, read and understand the lawyer’s statement of your rights.
Review the Contract: Ensure the contract includes specific provisions, such as the right to cancel within three business days and details on fee percentages at different case stages.
Discuss Fees and Percentages: Talk with the lawyer about the percentage they will take from the recovery amount and how it varies based on case progression.
Verify Lawyer’s Confidence: Gauge the lawyer’s confidence in your case, as a willingness to work on contingency often indicates belief in a positive outcome.
Consider Financial Risk: Remember that a contingency fee arrangement eliminates your financial risk, as you only pay if the lawyer wins or settles the case.
Confirm Additional Costs: Clarify any additional costs that might be deducted from your recovery, such as court fees or expert witness charges.
Get Everything in Writing: Ensure all terms discussed are documented in the contract, including the fee structure and any other financial obligations.
Sign and Keep Copies: After agreeing to the terms, sign the contract and keep a signed copy for your records.1-800-Injured is an attorney and medical referral service with a dedicated network of personal injury attorneys. Our platform connects clients with skilled legal professionals who can assist with personal injury claims. Call 1-800-Injured today at 888-530-7475 or contact us online.