Contingency fees - Many litigation matters are billed on the basis of a contingency fee. This fee is a percentage of monies that are obtained in the case, whether through settlement, trial, or negotiation. The attorney's fee comes off the top before you get your share, as do any incidental costs not paid in advance. The amount of the contingency can vary from 25 to 45 percent with the occasional and unusual fee at 50 percent. A contingency fee that exceeds 50 percent, except in a very unusual and risky case, is probably unreasonable.
Some attorneys base their fee on a sliding scale.
If the case is settled before trial and before the attorney begins to prepare for trial, the charge is lower than if the matter goes to trial. Ask your lawyer for a written fee agreement that sets forth the amount of the contingency and what will happen if the case is appealed. Some agreements also will address your absolute right to fire your attorney and your obligations in that event. Review the settlement sheet carefully and ask your lawyer about anything you do not understand. Sometimes an attorney will ask you to pay a retainer fee.