Before we explain why you should hire a lawyer who offers a contingency fee structure, it’s essential to understand what a contingency fee is (and isn’t).
In the legal industry, a contingency fee is a type of payment for legal services. It differs from hourly or retainer fee structures in that it is collected if and when a client wins a settlement. This type of fee structure is common in personal injury and workers’ compensation cases. However, contingency fees do not mean that 100% of costs are covered. Out-of-pocket expenses such as filing or expert witness fees may be charged outside the agreed-upon contingency fee rate.
Injury attorneys who charge on a contingency basis will take, as their payment, an agreed-upon percentage of the final settlement that a client wins. For example, if a client wins a $25,000 settlement and the contingency fee is 30%, the attorney’s fee would be $7,500. The attorney does not get paid if a client does not win a settlement. Again, exceptions or additional expenses outside of a contingency agreement might include specific fees, such as expert witness fees, if a case goes to trial.
A contingency fee structure motivates the attorney to secure the highest settlement possible. In this regard, it’s a win-win situation for the attorney and the client. The more a client wins, the more the attorney gets paid.
Why Contingency Fees Make Sense
Hiring a contingency fee lawyer offers several advantages. Here are four reasons to consider hiring a lawyer on a contingency fee basis:
- No Upfront Costs to the Client: One of the essential features of hiring a contingency fee lawyer is that you pay no retainer fee (an upfront fee that secures a lawyer’s services), nor are you billed by the hour. In essence, a contingency fee basis means you can still hire a lawyer even if you cannot afford one. This structure makes legal representation available to everyone regardless of their ability to pay.
- Motivation to Win: Since a lawyer working on a contingency fee basis only gets paid if they win the case, they are motivated to do everything in their power to win the highest settlement possible that a client has a right to.
- Minimal Financial Risk to the Client: In effect, a client has very little to lose if an attorney is willing to take a case on a contingency basis. If a case is successful, you receive a settlement and your attorney gets paid. If you lose the case, the attorney does not get paid. Again, third-party or filing fees may be separate from the contingency fee agreement, which a reputable attorney will clarify before taking the case.
- Access to Quality Legal Representation for Complex Cases: Contingency fee arrangements are especially attractive in cases that require specialized skills or extensive experience in a particular area of law. Hiring an attorney with the right type of experience can make a significant difference in the outcome.
Hiring a contingency-fee attorney makes sense if you have been injured through someone else’s negligence, whether in a traffic accident, slip and fall accident, or some other type of incident that wasn’t your fault.
Call our office at (916) 438-1819 to schedule a free consultation. The appointment is free whether we take your case or not. If we do take your case, you pay nothing until you win.
