A contingent fee is the fee a client pays to a personal injury attorney for their work on a case — but only if the attorney achieves a settlement or court award. If the attorney is unsuccessful, the client does not owe the fee, and the attorney receives nothing.
Contingent fees provide improved access to legal representation for personal injury clients who have strong cases, as many might not be able to afford upfront costs. A contingent fee arrangement also benefits a client in that their attorney now has some skin in the game — they want to get paid for their time and effort! Also, contingent fees reduce the risk of frivolous cases entering the legal system. An attorney will not take on an unwinnable case.
A contingent fee is typically in the neighborhood of one-third of the recovered amount. There might be a sliding scale in which the percentage is higher if a case advances to trial or appeal. Medical malpractice cases will likely have a higher fee due to their complexity.
There are expenses involved apart from the contingency fee that clients may owe, even if their attorney does not achieve a settlement or award. Examples include attaining medical records, court costs, expert witness fees, and deposition transcription costs. If a settlement or award is achieved, these expenses will usually come off the final settlement/award amount.
A key point to be clear on is when the contingent fee is calculated: before added expenses are paid, or after. The client benefits if the contingent fee is calculated after expenses are paid.
If you suffer harm due to someone’s negligence, contact our firm to protect your rights.
