What is a Contingency Fee?
In a contingency fee arrangement, an attorney agrees to accept a fixed percentage of your recovery as payment. This means that if you win your case, your attorney will collect their fees and expenses from the money awarded to you. However, if you lose your case, your attorney will collect nothing.
Most lawyers prefer not to work on contingency cases for two reasons:
- There is a risk the firm will be paid nothing
- Any payment is delayed until money is collected from the opposing party
Generally, a lawyer who accepts contingency fee cases:
- Regularly represents clients who lack the financial resources to pay hourly attorney’s fees (as is often the case for personal injury victims).
- Is more selective about the cases they accept.
- Is very confident in their ability to win the cases they choose to handle.
