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Attorney fees in workers compensation cases are based on a contingent fee, contingent fees are prevalent in personal injury cases. My partners use the same contingent fee concept but in workers compensation it’s a little different. Attorney fees are based on 25 percent of the first $4,000.00 and 20 percent of compensation thereafter. But for medical expenses, no percentages come out, and in fact, no attorney fees are ever paid on a medical dispute. So if a bill isn’t paid and we follow a claim against an insurance company on behalf of our clients, fi we’re successful the insurance company pays all the attorney fees.
If we’re not successful, we don’t receive any attorney fees but in neither case does our client have to pay a dime in attorney fees. The only way that our clients ever pay attorney fees on the weekly disability part of their case is at the end of their case when they help them obtain something that was being denied by the insurance company. And at that point, a judge has to sign an order approving the release of attorney fees. So we get paid at the end of the case if we do a good job and help our clients recover benefits.
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Minneapolis workers’ compensation attorney Mark Olive explains what a contingency fee is.