What You Should Know about Contingency Fees

In many legal cases, there is the opportunity to pay on contingency. This simply means that payment is not made to your attorney until you win your case. Cases with contingency fees are typically those that involve monetary compensation. For instance, if you are suing your employer for a work related injury, your attorney may agree to a contingency arrangement and not charge you any fees until you are awarded your compensation. This is the way that many disability lawyers work. They handle disability cases for clients and the clients are not charged any fees until the case is won.

Contingency fees are conditional. This means that if you are not awarded a settlement or in other words if you do not win your case, you are no required to pay your attorney. The fees are typically between 25 and 35 percent of the total amount awarded. There are a number of benefits to working on a case based on contingency. The client is under no obligation to pay the attorney unless a settlement is made. For those who find it difficult to afford attorney’s fees, this can be a very beneficial arrangement. Many who are forced to sue for compensation simply do not have the funds available to pay for attorneys’ fees, which can range anywhere from $100 or so per hour to more than $1,000 per hours in some cases.

Another benefit is that when an attorney works on a contingency basis, he or she knows that there will be no fees paid if the case is not successful. This could mean that the attorney will work harder to ensure that a monetary settlement is made simply so that their fees can be collected. When an attorney works on a traditional hourly basis, he knows that he will be receiving payment regardless of the case’s outcome. When he works on a contingency basis, he knows that the only way he will receive payment is if he is successful in collecting compensation for his client. This can cause the attorney to work extra hard in order to help the client recover compensation.

Fees based on contingency are only used when the case involves compensation. Disability, personal injury and work related injuries are often cases that are done by contingency. Those that do not involve monetary compensation cannot be based on contingency simply because there is no chance of money being awarded to the client. Many medical malpractice suits, cases involving product liabilities and automobile accidents involving injuries are commonly taken on a fee contingency basis.

Those who feel that they need an attorney to assist them in gaining compensation and who cannot pay an attorney upfront should ask if the firm works on contingency. This allows the client to go forward with a lawsuit without the worries of how they are going to pay their attorney during the process. Most attorneys will consider this arrangement if they feel that the client has a valid case that has a good chance of a positive outcome.

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