No Fee Unless You Win
Examining the cost comparison of local law firms and national ones requires examining how they are structured. Local law firms are often smaller family or partner run operations with a smaller staff and lower expenses. National firms are bigger with far larger overhead costs. Both types must pass those costs onto clients, but local Phoenix car accident attorneys such as Gage Mathers are able to offer more reasonable rates while having a greater depth of local knowledge.
There are three main factors that affect attorney pricing. These are fee structures, overhead costs, and outsourcing expertise, which differ significantly between local and national firms.
| Cost Factor | Local Law Firms (Phoenix-Based) | National Law Firms |
|---|---|---|
| Fee Structure | Contingency fees typically in a standard, clearly disclosed range | Contingency fees may be higher and include additional add-on charges |
| Upfront Transparency | Fees and case costs explained early in the process | Extra fees for specialty work may not be fully disclosed initially |
| Overhead Costs | Smaller staff, offices, and marketing budgets | Large teams, national advertising, and higher operational expenses |
| Impact on Client Fees | Lower overhead often results in more reasonable overall costs | Higher overhead is passed on to clients through larger fee percentages |
| Local Court Knowledge | Deep familiarity with Phoenix courts, judges, and procedures | Often limited or outsourced local experience |
| Outsourcing Local Attorneys | Rarely needed; attorneys are licensed locally | Frequently required, resulting in fee-splitting and higher costs |
| Expert Witness Expenses | Existing relationships with regional experts at negotiated rates | Out-of-state experts often charge higher fees |
| Overall Value for Clients | High value due to lower costs and local leverage | Higher costs with less localized case handling |
Personal injury attorneys typically operate on a commission basis. The law firm is given a percentage of the monetary amount awarded to the client. This fee is negotiated up front and any additional costs are transparent so the client understands exactly what they’ll be paying.
National firms also operate on commission structures but they can be larger percentages. They may also charge additional hourly fees for specialty work, expertise, or consulting that might not be fully disclosed upfront. These add-on fees can quickly become more expensive than initially thought.
A large national firm may have an outstanding reputation, but a national law firm’s overhead costs are far more substantial than a local one. There are more lawyers, more staff, additional secretaries, and higher advertising and national licensing costs. These costs must be borne by the fees collected from clients.
Local firms have smaller offices and employee headcounts; their advertising and administrative costs are far smaller. At the same time, their local relationships can help leverage a case in a way that is favorable for clients. When combined, this leads to higher client satisfaction in small law practices.
Large national firms purport to operate in all fifty states, but this does not mean they have a local attorney licensed in each state. If a large national firm does not have a licensed attorney in the area where a case will be tried, the national firm must contract out a local attorney. This means the local and national firms must split the fee percentage, which leads to higher rates overall.
In cases where large damages are at stake, expert witnesses may be called in. These experts charge a fee to the attorney for their services and typically charge higher rates to out-of-state firms. Conversely, local attorneys often already have working relationships with regional experts and can negotiate better rates, which leads to higher cost savings.
Should you use a local or national firm for personal injury? Examine your personal case needs and the reputation of the firms versus their costs.
Gage Mathers has been practicing law in Arizona for more than five decades. Our localized knowledge and expertise are second to none when it comes to handling personal injury cases. Reach out today to see how we can help maximize the award you deserve!
Client satisfaction in small law practices is often higher than that of larger or national law firms. Small law practices are often family or partner-run operations. This means they can leverage thei...
Posted by Joseph D'Aguanno
There are many differences between local and national law firms. National firms are typically much larger and work a variety of cases across the country. Local firms often work only within a stat...
read morePosted by Joseph D'Aguanno
Victims of an accident can experience both physical and psychological trauma. Signs of emotional distress include anxiety, panic attacks, depression, insomnia, debilitating fear, social withdrawa...
read moreIf you or a loved one has been seriously injured, please fill out the form below for your free consultation or call us at (602) 258-0646
2525 E Arizona Biltmore Cir #A114, Phoenix, AZ 85016
get directions