Should I Pay if the Personal Injury Lawyer Lost My Case in Calgary
One of the most stressful parts of dealing with a personal injury claim is the uncertainty about costs, especially when it comes to legal fees. If you’ve been injured in Calgary and have hired a personal injury lawyer to represent you, you might be wondering: What happens if my lawyer loses the case? Do I still have to pay? Understanding how personal injury lawyers charge for their services and what happens if your case is unsuccessful is critical before embarking on a lawsuit.
Contingency Fee Structure: No Win, No Pay
In Calgary, most personal injury lawyers work on a contingency fee basis. This means that their fees are contingent on winning or settling your case. If your lawyer successfully obtains a settlement or judgment on your behalf, they are paid a percentage of the amount awarded. However, if the lawyer loses the case, the general understanding is that you do not have to pay for their legal services.
How Does a Contingency Fee Work?
When you hire a personal injury lawyer on a contingency basis, you and your lawyer agree on a specific percentage of the settlement or judgment that the lawyer will receive as payment. This percentage typically ranges from 20% to 40%, depending on the complexity of the case and the potential damages involved.
For example, if you win a settlement of $100,000, and the contingency fee is 33%, your lawyer would take $33,000, leaving you with $67,000. If your lawyer does not win the case, however, the “no win, no fee” policy means that you will not be charged for the lawyer’s time or legal services.
Are There Any Costs I Might Have to Pay Even If I Lose?
While the contingency fee arrangement means you won’t pay for your lawyer’s time if the case is lost, there are still other costs that you might be responsible for, win or lose. These are known as disbursements, and they cover the expenses incurred during the legal process. Disbursements can include:
- Court filing fees
- Expert witness fees
- Medical reports and documentation
- Costs for obtaining evidence
- Administrative fees such as copying and courier services
In many cases, these disbursements are fronted by the law firm, but depending on your agreement, you may be required to pay them even if you do not win the case. This is why it is essential to carefully review your retainer agreement and fully understand what costs you are responsible for, regardless of the outcome of the case.
Disbursements Explained
Disbursements are not fees for your lawyer’s time but are third-party expenses incurred to support your case. For example, if your case requires the testimony of a medical expert to establish the extent of your injuries, the cost of hiring that expert might be considered a disbursement. These costs can add up, so it’s important to have a clear understanding with your lawyer from the outset about who covers these expenses if the case is not successful.
Legal Insurance: An Option to Consider
In some cases, legal insurance can help protect you from the financial burden of disbursements if your case is unsuccessful. Legal expense insurance can cover the cost of disbursements and even some court fees, offering peace of mind in the event that your case does not go as planned.
Before filing a claim, it’s worth exploring whether you already have legal expense insurance as part of your car or home insurance policy. If not, you might want to consider purchasing it separately if you’re concerned about covering disbursements in case your claim is unsuccessful.
What If I Want to Switch Lawyers Mid-Case?
There are situations where a client feels their lawyer isn’t doing a satisfactory job or is not responsive enough. In these instances, clients sometimes want to switch lawyers partway through a case. The question then arises: will you still owe fees to your original lawyer if they are no longer handling your case?
In Calgary, if you’ve hired a lawyer on a contingency basis and you decide to change lawyers, you typically don’t owe your original lawyer their contingency fee if they didn’t win or settle the case. However, the lawyer may claim disbursements for the work they’ve done up to that point. The new lawyer will usually agree to work on the same terms, meaning they will take over the contingency agreement.
Why Contingency Fee Agreements Are Beneficial for Clients
The contingency fee system is designed to make legal representation accessible to people who might not have the financial means to pay a lawyer upfront. In personal injury cases, victims are often dealing with physical injuries, emotional trauma, and financial hardship due to medical bills and lost wages. By offering a “no win, no fee” arrangement, lawyers ensure that clients can seek justice without the fear of incurring significant legal costs.
Additionally, because personal injury lawyers only get paid if they win, it aligns their interests with the client’s goal of maximizing compensation. It also motivates lawyers to work diligently on behalf of their clients, knowing that their payment is dependent on the case’s success.
Conclusion: What Happens If Your Case Is Lost?
If your personal injury lawyer in Calgary loses your case, you generally won’t have to pay their legal fees due to the contingency fee arrangement. However, there may be disbursements and other expenses that you could still be responsible for, depending on your agreement with the lawyer. It’s essential to have an open conversation with your lawyer about potential costs and to fully understand your financial obligations before proceeding with your case.
The “no win, no fee” model is a safety net that ensures you aren’t financially burdened by legal fees if your case is unsuccessful, but it’s always wise to clarify any additional expenses that could arise. By doing so, you’ll be better prepared to navigate your personal injury case, knowing what to expect, win or lose.
