Hourly rates vary according to the attorney's expertise and experience. Some critics have argued that hourly rates discourage quick work and expedited resolutions. Before agreeing to payment of an hourly rate, prospective clients should ask for a written estimate of the number of billable hours that the attorney anticipates will be necessary for the case. A contingent fee represents a certain percentage of the recovery in the client's case. For example, a typical contingent fee might be about one-third of the recovery in an action for personal injury.
Attorneys use a contingent fee when the client seeks money damages.
Contingent fees cannot be used in divorce cases, child custody cases, and criminal cases. The client does not pay a contingent fee until she or he wins money damages from the defendant. An attorney will offer such a fee if the client stands a good chance of winning a sizeable cash settlement or judgment. Contingent fees are a gamble for the attorney. If the client does not win the case, or wins less than anticipated, the attorney may work for little or no pay.