What is a Contingency Fee?

How am I affected by these fees, and how are they calculated?

In simple terms, a contingency fee explains how an attorney’s bills are paid depending on the result of a case. Not all attorneys operate this way, but our firm and many others do as well: there is no cost to you for your case if we cannot secure a recovery. In other words, our firm will only ask for their fee if you get your compensation.

In cases that see a recovery (meaning that some financial compensation is awarded, whether by settlement or verdict), most attorneys typically take their fees out of that recovery. This is why it is called a Contingency Fee. The exact fee is agreed upon between you and your lawyer, and after agreeing, you both sign a document that explains the fee and how and when it applies.

This affects clients at our firm and many others because unfortunately, not every case sees a recovery. Even if someone has a strong case and was truly hurt and needs help, the insurance company or the court don’t always see it the same way.

It is important to note that a Contingency Fee is not the same as a case expense. Case expenses are a related but distinct type of case cost. In short, a Contingency Fee is a form of Attorney’s fees, which pay the Law Firm’s bills for handling your case. Separately, each unique case has unique legal expenses, like hiring experts, recording depositions, or acquiring medical documents. Speak with an Attorney if you have specific questions.