What is a contingency fee contract?

A contingency fee contract is a type of fee arrangement commonly used in personal injury and other types of cases in which the lawyer represents the client on a “contingency” basis. This means that the lawyer agrees to represent the client and handle the case, but does not charge an hourly fee for their services. Instead, the lawyer’s fee is based on a percentage of the amount recovered for the client through a settlement or a judgment in court.

Under a contingency fee contract, the lawyer typically agrees to take a certain percentage of the amount recovered as their fee. For example, the lawyer may agree to take one-third (33.3%) of the amount recovered. If the case is successful and the client recovers damages, the lawyer’s fee will be taken out of the recovery before the client receives their share. If the case is not successful and no damages are recovered, the lawyer does not receive a fee.

Contingency fee contracts can be a useful option for clients who may not have the financial resources to pay an hourly fee for legal services upfront. They also allow clients to have access to legal representation without the financial risk of paying for the lawyer’s services out of pocket. However, it is important to carefully review and understand the terms of the contingency fee contract before signing, as the percentage of the recovery that the lawyer will receive as their fee can vary.

Contingency fee contracts are the norm in personal injury claims, including the amounts charged. If you are bringing a personal injury claim and would like to discuss your claim and the contingency fee contract in detail with a lawyer today, call Alvarez Gower Injury Law.