What Is a Contingency Fee
An overview of how contingency fee arrangements commonly work in personal injury cases.
The short answer
A contingency fee is a lawyer's fee that depends on the outcome: it is typically a percentage of any financial recovery, and if there is no recovery the client generally does not owe attorney's fees, though other costs may still apply. Percentages and costs vary by lawyer and case, so the arrangement should be spelled out in a written agreement you can ask questions about before you sign.
Introduction
If you're considering hiring a personal injury lawyer, you may hear the term "contingency fee." This article explains what contingency fees generally are and how they commonly work. This is general information and not legal advice.
How Contingency Fees Commonly Work
In a contingency fee arrangement, the attorney's fee is typically a percentage of any financial recovery. If there is no recovery, the client generally does not owe attorney's fees, though other costs may still apply.
Important Considerations
- Percentages vary by attorney, case complexity, and stage of the case
- Some costs (filing fees, expert fees, etc.) may be separate from the contingency fee
- Fee arrangements should be clearly spelled out in a written agreement
- You should feel comfortable asking questions about any fee arrangement
Frequently Asked Questions
What is a typical contingency fee percentage?
Percentages vary and there is no single standard. You should discuss specific percentages directly with any attorney you are considering.
Are there other costs besides the contingency fee?
There may be additional costs such as court filing fees, medical record fees, or expert witness fees. Ask your attorney to explain all potential costs upfront.
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