When a prospective client calls, one of the most common questions attorneys are asked is, “What’s it gonna cost me?”
You may often hear or see ads from personal injury lawyers claiming “no fee unless we win.” At Abrahams Law, that is certainly how it has worked for nearly 28 years for all of our injury clients.
In personal injury cases, we typically represent our clients on what’s called “a contingency basis.” This agreement protects the client from having to pay large retainers and receive monthly bills for hours worked on their case. With a contingency agreement, Abrahams Law does not ask for any money up front as a retainer, nor do we keep track of our time in order to send monthly bills. No out-of-pocket money for legal fees is requested from the client, which allows those who may not otherwise be able to afford access to our legal system to have their day in court.
Our fees are “contingent” upon getting you, the client, money. When we settle or receive an award, we take a 1/3 fee in Michigan cases. If, for some unfortunate reason we do not get any settlement or award for our client, there is no fee.
Once we receive money for our clients, disbursement is simple.
Since Abrahams Law advances the various costs associated with personal injury claims and cases, we first reimburse our office for those costs.
We then take a one-third fee of the net recovery after costs. You, the client, receive the remaining two-thirds. In most personal injury cases, if the compensation is for pain and suffering, the client’s share is not taxable. Of course, we will advise the client at the appropriate time whether or not they need to consult with a tax professional. This process is controlled by state law.
** As for costs, unlike many firms, Abrahams Law will never charge the client for basic costs such as postage, local or long distance phone calls, mileage, office supplies, standard photocopying or something many firms simply call “file maintenance fees” which are non-itemized blanket fees to recover mysterious costs.