Before agreeing to an hourly rate, prospective clients should ask for a written estimate of the number of billable hours that the attorney anticipates will be necessary to complete the matter. A contingent fee is a percentage of the amount recovered by the client. A contingent fee is not paid by the client until the client wins money damages from a defendant. Attorneys offer such a fee if the client stands a good chance of winning a sizable cash settlement or judgment. Contingent fees cannot be used in divorce cases, child custody cases, and criminal cases.
Contingent fees are a gamble for the attorney.
If the client does not win the case or wins less money than anticipated, the attorney may work for no or little pay. Common contingent fees range from 20 to 40 percent of the client's recovery. For personal injury and medical malpractice cases, laws in all states limit the percentage that an attorney may receive from a client's recovery. For other cases the percentage is negotiable by the client and attorney. A client may retain an attorney for a specific period of time rather than for a specific project.