In Maryland, a contingency fee agreement is a common way for personal injury lawyers to charge for their services. This type of agreement is a payment arrangement where the lawyer is only paid if the case is successful and the client receives compensation.
The Maryland Rules of Professional Conduct provide guidelines for contingency fee agreements. Rule 1.5(c) states that the fee must be reasonable and must be in writing. The agreement should clearly state the percentage of the recovery that the lawyer will receive as their fee. Typically, the percentage is between 33% and 40%.
The agreement should also state what expenses the lawyer will deduct from the recovery. These expenses can include things like court filing fees, expert witness fees, and costs of obtaining medical records. The client should be aware of the potential expenses and understand that they will be deducted from any recovery.
Before signing a contingency fee agreement, the client should make sure they understand the terms and ask any questions they have. The agreement should also state what will happen if the case is not successful. Some agreements may include a provision for a reduced fee if the case is lost.
Contingency fee agreements can be beneficial for clients who cannot afford to pay a lawyer upfront. It allows them to receive legal representation without having to pay anything unless they receive compensation. However, it’s important for clients to understand that the lawyer’s fee will be a portion of their recovery and that there may be additional expenses deducted from the recovery.
In summary, a contingency fee agreement is a payment arrangement where the lawyer is only paid if the case is successful and the client receives compensation. In Maryland, the agreement must be in writing, state the percentage of the recovery that will be the lawyer’s fee, and state what expenses will be deducted from the recovery. Clients should ask questions and understand the terms before signing the agreement.