If you’ve ever needed to hire an attorney to assist with a divorce or defend you in court, you know that their services typically don’t come cheap. Attorneys oftentimes charge hundreds of dollars an hour for their services, and nobody wants to be hit with a major bill at the end of a legal mess.
Fortunately, the payment structure for injury attorneys in Minnesota is much more client-friendly, and we think it’s a wonderful system because it ensures that everybody has the same priorities in mind. In today’s blog, we take a closer look at the injury attorney fee structure and payment caps in Minnesota.
Injury Attorney Payment Structure
Unlike a family lawyer or a criminal lawyer who likely charges an hourly fee for their services, injury lawyers operate a bit differently in Minnesota. Any worthwhile injury lawyer in Minnesota works under a contingency basis, meaning they only get paid in the event that they secure an award for their client. This is optimal for two main reasons:
- The attorney has a vested interest in ensuring their client wins an award, and;
- The attorney has a vested interest in getting their client the most money possible.
The second point is true because attorneys typically charge a client 20 percent of the total award for their services. That means that an attorney would take home $10,000 if they secured a $50,000 award for their client, but they’d take home $30,000 if they went hard after the insurance company and were able to secure a $150,000 award for their clients. The more money they get for their clients, the more money they’ll take home as well. It’s a win-win situation where everybody in your corner has the exact same goals – to maximize your injury award.
Injury Lawyer Payment Caps
Minnesota law lays out how fees are typically collected from injury lawyers. The law states that an attorney is allowed to charge a fee of 20 percent of the first $275,000 of compensation awarded to an employee for their services. This means that the maximum attorney fee is capped at $55,000. In the event that an employee is awarded $650,000 for their injuries, the attorney would still only be able to charge a fee of $55,000 for their services, even though it is less than 20% of the total award.
It is worth noting that there are instances where a lawyer may be able to take home more than what is laid out in the statutory limits. In rare instances, a lawyer may petition for fees in excess of the standard cap. In order to successfully win this petition, a lawyer must provide:
- Substantial documentation that supports the petition
- A list of specific legal services provided with dates and hours
- A statement of experience in workers’ compensation matters
- A detailed description of the legal, medical and factual issues in dispute
If your lawyer gives notice that they’ll be petitioning for fees in excess of statutory limits, ask for a detailed explanation as to why they feel entitled to these fees, including what additional services they felt they provided beyond what is normally expected from an injury attorney. You are entitled to great representation, but you’re also entitled to quality representation at a fair price, and you can offer counterarguments in the event you do not believe your lawyer should be granted these excessive fees. It’s very rare that a judge would grant these extra fees, but know that the $55,000 cap isn’t a completely stationary cap.
If you want honest representation at a fair price, connect with Dean and the team at Margolis Law Firm. We’ll work to get you the biggest award possible so that you can get the compensation you deserve after a work injury. For more information, or for help with a specific issue, connect with the team at Margolis Law Firm today at (952) 230-2700.
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