A contingency fee means your lawyer is paid only if your case produces money, and the fee is a share of that amount. It is common in injury cases and uncommon in criminal and most family cases.
How it works
Instead of billing by the hour, the attorney takes a percentage of any settlement or court award. If you recover nothing, you generally owe no attorney fee.
The percentage is set in a written agreement. Many personal injury lawyers charge about one third if the case settles and a higher share, often around 40 percent, if it goes to trial, but the figure is negotiable and varies by lawyer and state.
Fees versus costs
Court filing fees, expert witnesses, medical records and similar expenses are called costs, and they are separate from the lawyer's fee. Ask whether costs are deducted before or after the percentage is calculated, and whether you owe them if you lose. The order can change what you take home.
What to check in the agreement
- The exact percentage at each stage of the case.
- Which expenses are covered and when you repay them.
- Whether the lawyer can settle without your consent. Usually the decision to settle is yours.
- What happens if you change lawyers midway.
- How and when you are paid out after a settlement.
Frequently asked questions
Are contingency fees allowed in all cases?
No. They are generally prohibited in criminal defense and are restricted in many divorce and child custody matters.
Is the percentage regulated?
Many states require the agreement to be in writing and limit unreasonable fees, but rules differ. Read the agreement before signing and ask questions.