What is a contingency fee?
Contingency fees and contingency representation are things that you may only hear about in certain legal cases. Examples of such cases are personal injury cases, disability cases, and workers compensation litigation. The following is some additional information on the nature of a contingency fee so that you can gain a better understanding.
The Definition of a Contingency Fee
The simple definition of a contingency fee is that it’s a deferrable lawyer’s fee that is only payable if the attorney wins the case. Usually the fee is a percentage of the settlement or jury award that the lawyer, like a personal injury lawyer Phoenix AZ trusts, wins for their client.
Every attorney has at least one type of fee structure. Some lawyers offer the contingency structure to specific people so that such people do not have to pay a lawyer’s fee while they are experiencing financial hardship.
Who Qualifies for a Contingency Fee?
The matter of granting a contingency fee structure rests solely on the attorney. The cases that qualify for this structure are usually potentially high-value cases like car accidents, medical malpractice cases, and so on. The attorney is usually not afraid to perform the legal representation without a guaranteed fee because the case has a strong chance of winning. In addition, the contingency fee can work as an incentive and cause the lawyer to fight even harder for the client.
How Do Contingency Fees Work?
A majority of the contingency arrangements are no win-no fee. That means the client does not have to pay unless the attorney gets a settlement for that person. Such attorneys will charge their clients a certain fee if the judge grants in favor of that client. That fee is usually as low as 25 percent of the settlement, but it is sometimes as high as 40 percent of the settlement. The arrangement depends on the firm’s location, the type of case it is, and the amount of work that the attorney must perform to win the case.
Benefits of a Contingency Fee
One of the main benefits of a contingency fee is that it alleviates stress for the client.
- The client does not have to worry about paying legal fees on top of immediate medical bills and other financial concerns.
- It accommodates people who could not otherwise afford legal assistance.
- The contingency structure defers the lawyer’s bill until after it’s successfully resolved.
- There’s no risk for the client because he or she doesn’t have to pay unless the case goes in the client’s favor.
- Contingency representation is good for the lawyer because they can potentially earn significant money from one case.
Discover if You’re Eligible for a Contingency Fee
If you have been victimized by a situation like a car accident or medical malpractice don’t hesitate to call a personal injury attorney. Many attorneys offer a free consultation as well as contingency representation. You’ll be doing yourself an injustice if you don’t call. The attorney can let you know after the initial consultation if your case is viable and he or she can help you.
Thanks to our friends and contributors from Lorona Mead for their insight into personal injury practice.
Todd is very thorough, diligent and knowledgable in his litigation skills and also exhibits professional decorum with clients and defense counsel.
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