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. Contingent fee percentages vary from case to case. 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 place limits on the percentage that an attorney may receive from a client's recovery. The law does not place a limit on contingent fee percentages for other cases, in which the figure is negotiable between the client and attorney.