What Does Contingency Fee Agreement Mean

As a potential client seeking legal representation, it is important to understand the different types of fee agreements that lawyers may use. One of the most common fee agreements is the contingency fee agreement. In this article, we will discuss what a contingency fee agreement is and how it works.

Firstly, what is a contingency fee agreement? A contingency fee agreement is a type of agreement between a lawyer and a client, where the lawyer agrees to represent the client with the understanding that the lawyer will only receive payment if the client wins the case. This means that the lawyer’s fee is contingent upon the outcome of the case. If the client loses the case, the lawyer will not receive any payment.

The contingency fee agreement is often used in cases where the client may not have the financial means to pay for legal representation upfront. This type of agreement allows clients to pursue legal action without having to pay any upfront fees, as the lawyer agrees to represent the client on a contingency basis.

In most cases, the lawyer will receive a percentage of the settlement or award that the client receives. This percentage is agreed upon in the contingency fee agreement and may range from 25% to 40% of the final settlement or award amount. It is important for clients to fully understand the percentage that the lawyer will receive before agreeing to a contingency fee agreement.

Contingency fee agreements are most commonly used in personal injury cases, where the client has suffered physical or emotional harm. These cases may include car accidents, slip and fall accidents, medical malpractice, and wrongful death. The lawyer will evaluate the case and determine if there is a strong chance of winning, before deciding whether or not to take the case on a contingency basis.

It is important to note that clients are still responsible for any costs associated with the case, such as court fees, expert witness fees, and other expenses. These costs are typically paid by the client upfront, but may be reimbursed if the client wins the case.

In conclusion, a contingency fee agreement is a type of fee agreement between a lawyer and a client, where the lawyer agrees to represent the client on a contingency basis. This means that the lawyer’s fee is contingent upon the outcome of the case. Contingency fee agreements are most commonly used in personal injury cases and provide clients with the ability to pursue legal action without having to pay any upfront fees. Clients are responsible for any costs associated with the case and should fully understand the percentage that the lawyer will receive before agreeing to a contingency fee agreement.