A contingency fee is a payment arrangement commonly used in personal injury cases when hiring an attorney. In this type of fee arrangement, the attorney’s payment is contingent upon the outcome or success of the case. Instead of charging an hourly rate or an upfront fee, the attorney agrees to be paid a percentage of the compensation awarded to the client if they win the case. If the client does not receive any compensation, the attorney does not receive payment for their services.
The contingency fee percentage can vary depending on various factors, such as the complexity of the case, the anticipated effort required, and the risk involved. Typically, contingency fees range from 33% to 45% of the total compensation. However, the specific percentage is negotiable between the attorney and the client.
Contingency fees are beneficial for clients who cannot afford the high upfront costs of hiring an attorney, particularly in personal injury cases where they may already be facing financial hardships due to medical bills or lost wages. This fee arrangement allows individuals access to legal representation without incurring immediate financial burdens.