Law Facts: What Do Lawyers Earn?
Every so often a huge settlement comes across the news wire, reading something like “Man sues tobacco company, wins $400 million!” Of this ridiculous settlement, about how much do the lawyers take home? First, most lawyers make money from their time. They charge on an hourly basis, charging their client for consultation and for the time it takes to do research. In defense law, this is where most of the very wealthy lawyers make all of their money, since large firms will pay millions to have the best defense lawyers available.
Some lawyers, on the other hand, make money by working for a firm and winning cases. Usually, they do not receive an exact percent of the settlement, rather they are paid on a salary basis, and then they receive a bonus proportionate to how much money they brought into the firm. Lots of personal injury attorneys work this way, which is how they are able to provide a free consultation, since they know that the settlement will more then compensate them for their time. So when you read that a lawsuit was awarded in the amount of $400 million, the specific lawyer who fought the case does not receive a percent of that money. The percent goes to the firm and partners, and then the lawyer gets a huge bonus.
