What Percentage Does a Lawyer Take From a Settlement in Nevada?

Understanding Contingency Fees in Nevada Personal Injury Cases

Your lawyer will likely explain how contingency fees work in Nevada during your free initial consultation. This sit-down will also allow you to ask any questions you have about the lawyer’s fee and how it’s paid.

Contingency fees are calculated as a percentage of the amount recovered for the client. In other words, the lawyer takes a financial stake in the client’s case by sharing the risks of losing and the benefits of winning.

If the lawyer loses the case, meaning there’s no recovery, the client will pay no legal fees. However, if the lawyer wins or settles the case, they’ll take an agreed-upon percentage of the gross amount.

Standard Attorney Fee Percentages in Nevada

There is no average lawyer settlement fee in Nevada. However, most contingency fee percentages fall between 30% and 45%. Some sources suggest that the average contingency fee is 33%, though the factors in your case could dictate a higher or lower rate.

Another complicating factor in predicting the average lawyer percentage from settlements in Nevada is that many law firms have a tiered fee structure. For example, a law firm might charge 30% of any settlement obtained without filing a lawsuit. The percentage might increase to 35% after litigation commences due to the additional work required.

Factors That Influence the Lawyer’s Percentage

According to Rule 1.5 of the Nevada Rules of Professional Conduct, lawyers cannot charge unreasonable fees. Under this rule, the following elements influence whether a fee is reasonable:

• The time and labor the matter demands.
• Whether the case raises novel or difficult legal questions.
• The skill required to handle the case.
• The likelihood that the case will require the lawyer to turn down other cases.
• The customary fee for similar matters.
• The value and outcome of the case.
• Whether the case involved strict time limits.
• The nature and length of the attorney-client relationship.
• The lawyer’s experience, reputation, and abilities.
• Whether the fee was contingent or fixed.

As an example, a lawyer might charge a higher percentage for a bus accident case against a state agency because of the statute of limitation involved. They might also charge more for cases arising from toxic exposure due to the complex scientific issues at play.

Additional Legal Costs Deducted From Settlements

In addition to charging legal fees, lawyers also deduct case expenses from settlements. The attorney typically advances these costs on the client’s behalf. For instance, a lawyer might pay the court filing fees to file a lawsuit or an expert witness’s fee for an accident reconstruction analysis.

At the end of your case, you must reimburse your lawyer for the hard expenses they’ve incurred. These costs will be deducted from your settlement. The State Bar of Nevada recommends discussing whether you’ll be responsible for paying these costs out-of-pocket if the lawyer loses your case.

How Is the Final Settlement Amount Calculated? (Step-By-Step Example)

Nevada’s Rules of Professional Conduct require all contingency fee agreements to be in writing and signed by the client. This agreement should explain how your final settlement amount will be calculated.

Here’s how contingency fees are typically tallied up and paid out.

Step 1: Settling the Case and Remitting Payment

Your lawyer will negotiate for the greatest amount possible from the at-fault party and their insurer. The amount they secure will be paid to them by check, and they’ll deposit the check in their client’s trust account. This account is used exclusively to hold client property.

The value of the check is the “gross settlement amount.” The attorney will hold this amount until they can resolve any claims to it and generate a statement listing any relevant deductions, along with the specific amounts and reasons for them.

Step 2: Calculating the Attorney’s Fees

So, how are lawyer fees calculated from settlements in Nevada? There are two ways to work out legal costs based on your fee agreement.

Some attorneys calculate their percentage of settlements based on the gross amount. Others deduct any costs and liens first and calculate their rate based on the net amount. Make sure you understand the process since the fee can differ significantly based on the arrangement.

For example, suppose that your lawyer recovers $100,000 in your case, has $10,000 in costs, and charges a fee of 35%. If they calculated their fee based on the gross amount, they would receive $35,000, plus $10,000 in reimbursement. If they charged based on the net amount, they would receive $31,500, plus $10,000.

Step 3: Deducting Associated Case Costs

Lawyer costs for a settlement in Nevada are generally deducted from the final settlement amount. Again, you should review your contingency fee agreement to verify whether these costs will come out before or after the Nevada settlement attorney fees have been calculated.

Step 4: Deducting Legal Fees

Although the lawyer fees for personal injury claims may be calculated at any point, they’re typically deducted after the case concludes.

In other words, the lawyer is usually the last to get paid before the settlement balance is disbursed to the client. Your attorney has a fiduciary duty to resolve any claims to your settlement before taking their fees or paying you.

Step 5: Paying the Client

The last step is to issue a check to the client from the lawyer’s client trust account, along with a statement. The statement will show the calculations made to reach the final balance.

Medical Liens and Third-Party Payments

Medical liens are legal filings by medical providers that claim a portion of a settlement to pay for any outstanding medical bills that are relevant to the case. Doctors and hospitals often use liens when injury victims need medical care but lack health insurance or the means to pay out-of-pocket.

Nevada Laws and Ethical Rules on Attorney Fees

There are several laws and ethical rules that cover contingency fees, although they don’t necessarily create a cohesive framework that applies to all cases.

First, Nevada law limits the contingency fee lawyers can charge for medical malpractice cases to 35% of the net amount after costs.

Second, the Rules of Professional Conduct restrict contingency fees in criminal defense cases. Lawyers also can’t charge contingency fees in domestic cases in which payment is contingent on obtaining a divorce, property division, or alimony. However, the rules don’t limit the use of contingency fees in personal injury cases.

Why Hiring a Lawyer Is Worth the Percentage

A qualified lawyer can help you obtain better results than you may be able to achieve if you were to try to handle your case on your own. Insurance companies have a financial incentive to pay out as little as possible. Your attorney will have the knowledge and skills to negotiate a fair and satisfactory settlement based on your losses.

Moreover, if the settlement negotiations fall through, your lawyer can advise you about your options for filing a lawsuit. They’ll work to assemble any relevant evidence to prove your claims, partner with expert witnesses, when needed, and advocate for your interests before a jury.

Questions To Ask About Fees During Your Free Consultation

The free initial consultation is your opportunity to learn more about your prospective lawyer’s fees.

Some good questions to ask include:

• How much do you charge?
• How do you calculate your fees?
• How will I be informed about any supplemental expenses I may incur?
• Will I pay any costs, regardless of the outcome of my case?

When you get injured unexpectedly, a contingency fee can help you pursue compensation for your various losses with high-quality legal representation.

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