The High Cost of Justice (Usually)
In most areas of law, hiring an attorney is a terrifying financial prospect. If you need a divorce lawyer, a corporate defense attorney, or criminal defense counsel, the first thing they will ask for is a "retainer." This is a lump sum of cash, often $5,000, $10,000, or more, that you must pay before they even pick up a pen. On top of that, they bill you by the hour. Every phone call, every email, and every minute spent thinking about your case drains your bank account.
For the average family, this system is impossible. If you have just been injured in a car accident or a workplace incident, you are likely missing work. Medical bills are piling up. You are financially vulnerable. The last thing you have is $10,000 lying around to hire a lawyer to fight the insurance company.
This is where the Contingency Fee system comes in. It is the great equalizer of the American legal system.
What Exactly Is a Contingency Fee?
A contingency fee is exactly what it sounds like: our fee is contingent (dependent) on the outcome of your case. Simply put: If we don't win, you don't pay.
When you hire Shiraz Law Firm for a personal injury claim, you do not pay us an hourly rate. You do not pay a retainer. Instead, we agree to accept a fixed percentage of the final settlement or jury verdict as our payment. If we recover $0 for you, our fee is $0. We assume the financial risk so that you don't have to.
Why This Model Benefits You
The contingency fee model does more than just save you money upfront; it completely aligns your interests with your attorney's interests.
- Motivation to Win: In an hourly billing model, a lawyer makes money the longer the case drags on. In a contingency model, we are motivated to get you the highest possible result as efficiently as possible, because our paycheck is directly tied to the size of your check.
- Access to Top Talent: The insurance companies have armies of lawyers paid for by billion-dollar corporations. The contingency fee allows a regular person to hire a legal team that is just as powerful, without needing to be rich.
- Honest Case Assessment: Because we only get paid if we win, we are very selective. We won't lead you on. If we take your case, it means we believe in it and we believe we can win.
Understanding "Fees" vs. "Costs"
Transparency is key to a good attorney-client relationship. While you pay no attorney fees unless we win, it is important to understand the difference between "fees" and "costs."
Attorney Fees are the payment for our time, our legal expertise, and our work.
Case Costs are the expenses required to move the case forward. These include:
- Court filing fees
- Hiring expert witnesses (like doctors or accident reconstructionists)
- Obtaining medical records and police reports
- Deposition transcripts
At Shiraz Law Firm, we typically advance these costs for you. We pay the court fees and the experts out of our own pocket while the case is pending. Once the case is won, those expenses are reimbursed from the settlement portion. This ensures that you truly never have to open your wallet to pursue justice.
The Standard Breakdown
In Michigan personal injury law, the standard contingency fee is typically one-third (33.3%) of the net recovery. For example, if we settle your case for $100,000:
- First, the case costs (e.g., $1,000 for records and filings) are deducted.
- From the remaining amount, the attorney fee (33.3%) is paid.
- The remainder is yours, tax-free in most personal injury cases.
While 33% might sound like a significant chunk, statistics consistently show that injury victims who hire attorneys recover over 3x more money than those who try to settle with the insurance company alone. Even after paying the fee, you typically end up with significantly more money in your pocket than if you had handled it yourself.
Don't Let Money Silence You
The insurance industry banks on the fact that you are afraid of legal bills. They hope you will take their lowball offer just to avoid the "hassle" and expense of a lawyer. The contingency fee system is your shield against that tactic.
At Shiraz Law Firm, we believe your financial status should never determine your access to justice. You have enough to worry about with your recovery; let us worry about the legal battle. Call us today for a free consultation, it costs you nothing to ask, and it costs you nothing to hire us unless we win.
