What Factors Affect the Amount of Attorney Fees in a Structured Settlement?
Structured settlements have become a popular way for plaintiffs to receive compensation for their lawsuits. These settlements allow the defendant to pay the plaintiff through periodic, tax-free payments rather than a lump sum. In a structured settlement, an attorney plays a crucial role in representing the plaintiff. The attorney’s fees are one of the factors that can greatly affect the overall amount of compensation the plaintiff receives. In this article, we will examine the factors that affect the amount of attorney fees in structured settlements.
1. Complexity of the Case:
The complexity of the case can greatly affect the amount of attorney fees charged. The more complex the case, the higher the fees will be. In a complex case, an attorney may need to invest more time, resources, and expertise. For example, medical malpractice lawsuits are among the most complex cases, as they involve expert testimony, extensive medical records, and a lengthy discovery process.
2. Negotiation Skills:
The attorney’s negotiation skills can also play a significant role in determining the amount of fees charged. A skilled negotiator can increase the settlement amount, and thus the attorney’s fees. Conversely, a poorly skilled negotiator can result in a reduced settlement amount and lower fees.
3. Time and Effort Invested:
The amount of time and effort invested by the attorney in a case also influences the fees charged. A settlement that involves a lengthier process, more paperwork, or more research will require more hours from an attorney. This, in turn, can result in higher fees. Additionally, cases that require travel or court appearances also increase the time and effort invested by the attorney.
4. Experience and Reputation:
The experience and reputation of the attorney can also play a role in determining the fees charged. More experienced attorneys tend to charge higher fees, as they have a proven track record of achieving favorable settlements. Additionally, attorneys with a good reputation for winning cases can demand higher fees due to the perceived value they bring to a case.
5. Percentage of Award:
The percentage of the award is perhaps the most important factor that determines the attorney’s fee in a structured settlement. Depending on the state law, attorneys can charge anywhere from ten to fifty percent of the settlement amount. In some states, the percentage can vary depending on the type of case or the stage of the proceedings.
In addition to the above factors, there are also some other considerations when it comes to attorney fees in structured settlements. One of the most important considerations is the ethical rules that the attorney must follow. These rules outline the responsibilities that the attorney has towards the client and the court. Violating these rules can result in penalties, disbarment, or even criminal charges.
Another consideration is the negotiation process between the plaintiff and defendant. Some defendants may be more willing to pay higher fees if it means a faster resolution to the case. On the other hand, some plaintiffs may be more focused on the overall settlement amount rather than the attorney fees. This can influence the negotiation process and ultimately affect the fees charged.
In conclusion, the amount of attorney fees in structured settlements is determined by several factors, including the complexity of the case, the attorney’s negotiation skills, the time and effort invested, the experience and reputation of the attorney, and the percentage of the award. It is important for plaintiffs to work with an attorney who is experienced and has a good reputation for achieving favorable settlements. Additionally, plaintiffs should also be aware of the ethical rules that attorneys must follow and be prepared to negotiate the fees charged. By keeping these factors in mind, plaintiffs can ensure that they receive a fair settlement and that their attorney’s fees are reasonable and justified.