Most personal injury lawyers are paid a contingency fee (a percentage of the money recovered). You’ll also be responsible for your lawyer’s expenses in handling your case. You should be reimbursed for most of these expenses (but probably not all of them) if you win your case. Your lawyer will expect his expenses to be paid in full unless your legal contract specifies otherwise.

The contingency fee you’re charged should be negotiable to some degree. Depending on the circumstances, most BC personal injury lawyers charge 15-30% of the amount recovered, with 25% the most common percentage charged. (The maximum percentage allowed is 33-1/3rd %.) The percentage you’re charged will reflect the risks your lawyer feels he’s taking in representing you; how difficult he expects your case to be; and how much work he thinks he’ll have to do.

In general, the more your claim is worth, the lower the contingency percentage you should pay. Other considerations that may affect the percentage charged are whether liability is an issue; whether there’s a dispute about the cause, nature or extent of your injuries; and at what point the lawyer became involved. A lawyer may charge 10-15% in some cases and 30% in others. When a case is appealed, a higher percentage is usually charged.

Your lawyer may agree to charge you a lower contingency percentage if your award or settlement goes above a pre-determined amount. This could be $100,000 or $500,000, depending on what you and the lawyer agree to.

With a potentially large claim, it may make sense to pay a lawyer by the hour instead paying a contingency fee – or to pay a reduced hourly-rate combined with a low contingency percentage.

The only time it makes sense to hire a lawyer without agreeing to a specific contingency percentage (or sliding scale) is when you’re seriously injured and it’s unknown how fully you’ll recover. It may be awhile before your lawyer can estimate how much work he’ll have to do and what it will cost him to support your claim at trial.

Legal services not expressly covered by your contingency fee agreement may be billed on an hourly-rate basis. This might include a Part 7 legal action and post-trial efforts to collect your money. If you hire a new lawyer, your first lawyer may charge you by the hour for the work he’s done. His hourly rate should be included in your legal contract. (Most BC personal injury lawyers charge $100 - $300 an hour. A higher daily rate may be charged for court appearances on a client’s behalf.)

Fixed fees in personal injury cases are usually limited to appeals, WorkSafeBC applications, and post-trial appearances before the Court Registrar. You should be told in advance what you’ll pay for services billed in this way.