What does it mean for an attorney to charge a contingency fee for a personal injury claim?

Most personal injury attorneys in New Jersey will agree to represent you for your injury claims under a contingency agreement. This arrangement typically requires the attorney to advance all litigation related expenses on your behalf. If the attorney recovers money for you through a settlement or trial, the attorney will then reimburse the advanced expenses and take a percentage of the amount left as the attorney fee. After the expense reimbursement and the percentage for attorney fees, the amount left is your net recovery. The New Jersey Rules of Court set the maximum percentages that attorneys can charge for personal injury cases. The percentage decreases as the amount of recovery goes up as follows:

  • 33 1/3% of the first $500,000 net recovery;
  • 30% of the next $500,000 net recovery;
  • 25% of the next $500,000 net recovery;
  • 20% of the next $500,000 net recovery.

If the attorney does not recover money for you, there should be no charge to you for the attorney’s time. In addition, most attorneys will not require you to reimburse their expenses if there is no recovery, but you should address expense reimbursement with the attorney before agreeing to hire their services. The contingency fee agreement typically allows you to hire an attorney without having to pay any fees or expenses unless and until the attorney obtains compensation for you.


About RAM Law

RAM Law represents all of Central Jersey in personal injury cases and is staffed by experienced accident and injury attorneys. We provide legal help for victims of slip and fall accidents, medical malpractice, workplace injuries, truck and car accidents, and other personal injuries. Call (732) 247-3600 to discuss your case and set up a free consultation at our New Brunswick or Somerville law offices.

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RAM LAW,founded by Ed Rebenack Jay Mascolo,and Craig Aronow,is a specialized trial and litigation firm,focused on personal injury cases.The firm leverages its extensive courtroom experience and negotiation skills to get you the best possible results.

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