Contingency Fee Explained

19 Nov Contingency Fee Explained

A contingency fee is a type of fee arrangement commonly used in personal injury cases. This fee arrangement shifts the financial burden to the personal injury law firm to ensure that all clients get access to justice after they have been injured through no fault of their own. Here’s how it typically works.

1. No Upfront Costs: The client does not have to pay any upfront or hourly fees to the attorney. This can be especially beneficial for individuals who may not have the financial means to pay for legal services at the beginning of their case.
2. Percentage of Recovery: Instead of a flat fee, the attorney’s payment is typically calculated as a percentage of the monetary compensation awarded to the client. This percentage, which is typically 33 1/3 percent for a case that gets resolved without the filing of a lawsuit, is agreed upon in advance and is usually outlined in the contingency fee agreement. It’s important for clients to carefully review and understand the terms of the contingency fee agreement before proceeding, including the specific percentage the attorney will receive should a case require a lawsuit and go all the way to trial.
3. Payment Upon Successful Outcome: The attorney only gets paid if they successfully resolve the case in favor of the client. The outcome is often a settlement or a favorable verdict.
4. No Recovery, No Fee: If the attorney does not secure any compensation for the client, the client may not owe the attorney any legal fees. This aspect aligns the attorney’s interests with those of the client, as both parties benefit from a successful outcome.

Do you need a car wreck attorney?

The Hair Law Firm focuses on car wreck cases, representing clients daily, and filing lawsuits when necessary. If you or a loved one has been injured in a car wreck, contact the Hair Law Firm at (803) 881-3711.