Attorney's Fee Guide for Tort Claims

Attorney's Fee Guide for Tort Claims

When you are injured in a traffic accident, workplace accident or as a result of public negligence, the decision to consult with an attorney is sometimes critical to obtaining the compensation you deserve. However, one of the first questions that arise is: how much will it cost? How is an attorney's fee calculated in tort claims? What is the difference between percentages and hourly rates? This guide is designed to provide you with a complete and clear answer to these questions.

In a typical tort case, the attorney's fee is usually calculated as a percentage of the compensation the claimant will receive. This is the most common method in Israel, due to the fact that it aligns the attorney's interests with those of the client – in other words, the larger the compensation, the larger the attorney's fee. However, there are additional methods for calculating attorney's fees, and each case has its own unique characteristics.

At Mandelbaum, Gor, Witzman-Gor & Co., Attorneys at Law, we have specialized in representing claimants in tort cases since 2008. Over many years of experience, we have handled cases of traffic accidents, workplace accidents, medical negligence, public negligence and various types of insurance claims. This guide is built on our practical knowledge and is designed to provide you with complete clarity on the subject of attorney's fees, so you can make an informed decision when choosing an attorney.

How is an Attorney's Fee Calculated in Tort Claims?

The Percentage Method – The Most Common Model

The most common method for calculating attorney's fees in tort claims is calculating a percentage of the final compensation. Typically, an attorney will receive between 20% to 30% of the amount the claimant receives, depending on the complexity of the case, the stage of proceedings and the size of the compensation. This percentage may vary according to certain factors:

• Case Complexity: A simple case, such as a traffic accident with clear liability, may result in a lower percentage (20%). A more complex case, such as medical negligence or public negligence, may result in a higher percentage (25%-30%).
• Stage of Proceedings: If the case is settled or a favorable offer is accepted early, the percentage may be lower. If the case goes to trial for an extended period, the percentage may be higher.
• Size of Compensation: In very large compensation awards, there is sometimes a tiered scale – for example, 25% on the first amount up to a certain sum, and 20% on the excess amount.

Hourly Rate – A Less Common Alternative

In some cases, particularly in simple cases or in initial consultation stages, an attorney may offer an hourly rate. This rate varies depending on the attorney's experience, location and area of specialization. In the field of tort claims, hourly rates typically range from NIS 500 to NIS 1,500 per hour, depending on these factors. However, this method is less common in large tort claims, since the claimant prefers a fee contingent on the outcome.

Mixed Arrangements

Sometimes, an attorney and claimant may reach a mixed arrangement: a percentage of the compensation plus a basic fee or management costs. This type of arrangement is sometimes used when the case requires substantial investment of resources, or when there is significant risk that the claimant will not receive compensation.

Factors Affecting Attorney Fees in Tort Claims

Not all tort claims are the same. There are key factors that influence the amount of attorney fees an attorney will determine:

Type of Damage and Severity

A simple traffic accident with minor bodily injury may result in a simpler case, and therefore a lower percentage of attorney fees. In contrast, a serious work accident, medical malpractice resulting in permanent disability, or large-scale public negligence – these require significantly more legal work, and may therefore result in a higher percentage of attorney fees.

Liability and Legal Dispute

When liability is clear and damage is easy to prove, the case is simpler. When there is legal dispute regarding liability, the amount of damage, or the extent of disability, more legal work is required, and this is reflected in the attorney fees.

Stage of Proceedings

If the case is settled at an early stage of proceedings (before filing a formal claim or during the initial stage of negotiations), attorney fees may be lower. If the case reaches court and requires a full trial, attorney fees may be higher.

Attorney's Experience and Firm Size

An attorney with extensive experience in tort claims may set a higher percentage of attorney fees than an attorney without special experience in the field. Large firms may also set higher rates than small firms or boutique practices.

Compensation Amount

In cases where compensation is expected to be relatively small (up to 50,000 NIS), an attorney may offer a higher percentage of attorney fees to ensure fair compensation for their work. In cases where compensation is expected to be very large (over 500,000 NIS), an attorney may agree to a lower percentage, since they will still receive a substantial amount.

Comparison Between Different Attorney Fee Models

To better understand the implications of choosing an attorney based on the fee structure, here is a comparison between different models:

As can be seen in the table, there is no "one model fits all." The choice depends on the scope of the case, the risk involved, and your ability as plaintiff to pay costs upfront.

Practical Examples: How Attorney's Fees Are Calculated in Tort Claims

Example 1: Simple Traffic Accident

A claimant is injured in a traffic accident with minor injuries (neck and back strain). Clear liability exists. Expected compensation: NIS 80,000 (approximately NIS 50,000 for bodily injury and NIS 30,000 for loss of earning capacity). The attorney sets fees at 25%. The claimant receives NIS 60,000, and the attorney receives NIS 20,000. In this case, the claim is relatively straightforward, so the percentage falls within the low-to-moderate range.

Example 2: Serious Work Accident

A worker is injured in a serious work accident and is declared 50% disabled. Expected compensation: NIS 400,000. The case is more complex – a dispute is required regarding the disability percentage, future income loss, and trial may be necessary. The attorney sets fees at 28%. The claimant receives NIS 288,000, and the attorney receives NIS 112,000. The percentage is higher due to case complexity and greater risk.

Example 3: Medical Malpractice

A claimant suffered from medical malpractice leading to permanent disability. Expected compensation: NIS 1,200,000. The case is highly complex – expert testimony is required, legal dispute over the causal connection between malpractice and damage, and prolonged litigation is possible. The attorney sets fees at 30%, but with a graduated scale: 30% on the first amount up to NIS 500,000, and 25% on the excess amount. The claimant receives approximately NIS 860,000, and the attorney receives approximately NIS 340,000. The percentage is higher due to the extreme complexity of the case.

Attorney's Fees in Insurance and National Insurance Claims

In claims concerning national insurance (for example, a claim against the National Insurance Institute regarding a pension or disability), attorney's fees may be regulated differently. In such cases, attorney's fees are sometimes limited by law or by court guidelines. Generally, in claims against the National Insurance Institute, attorney's fees range between 15% and 25% of the amount the claimant wins.

In claims against insurance companies (for example, general insurance, liability insurance, life insurance), attorney's fees may be higher, as insurance companies often vigorously contest claims, requiring substantial legal work. In such cases, attorney's fees may reach 30%-35%.

Additional Costs in Tort Claims – Beyond Attorney's Fees

It is important to understand that sometimes, in addition to the attorney's fees, there are additional costs in the case. These costs may include:

• Expert Testimony: In cases requiring medical or engineering expertise, fees must be paid to examiners and experts. These costs typically range between NIS 2,000 and NIS 10,000 per expert, depending on the field and complexity.
• Court Fees: If the case reaches court, there are fees that vary according to the amount of the claim.
• Administrative Costs: Some attorneys charge a basic administrative fee (typically between NIS 500 and NIS 2,000) to cover office expenses and file management.
• Translation and Copying Costs: In cases requiring documents in other languages or numerous documents, these costs can accumulate.

Before signing an agreement with an attorney, it is important to clearly ask which additional costs you may be liable for, and how they will be charged – whether they will be deducted from the compensation or from your pocket.

How to Choose an Attorney Based on His Fees

Choosing an attorney should not be based solely on attorney's fees. Although this is an important factor, there are other factors that are equally important:

Experience in Tort Law

An attorney with deep experience in tort claims will be able to navigate complex legal issues, properly evaluate the case value, and negotiate effectively with insurance companies and other bodies. This experience may lead to higher compensation in the end, even if the attorney's fees are higher.

Fairness in Fee Proposals

A fair attorney will offer a percentage of attorney's fees that is fair and reasonable according to the type and size of the case. Avoid attorneys who offer unusual percentages (unusually high or low) without clear explanation.

Clear Communication

A good attorney will clearly explain how attorney's fees will be calculated, what additional costs you may be liable for, and what you can expect at each stage of the proceedings. Choose an attorney willing to invest time in explanation and creating clarity.

Personal Attention and Dedication

An attorney who dedicates personal time to your case and shows genuine interest in your outcome may be of much greater value than an attorney who treats your case like another file in a stack. Choose an attorney you feel confident with and trust will do everything to achieve the best compensation for you.