Why Work on a Contingency Fee?
A contingency fee ensures that our interests are always aligned with yours. We work hard so our clients get the maximum possible recovery. If you make more, we make more.
In addition, a contingency fee allows those who cannot afford to pay upfront for an attorney the ability to obtain legal counsel. Regardless of your income, you deserve proper representation in defending your legal rights.
What If I Don’t Win My Case? Do I have to pay?
No. We aren’t paid unless the case is settled out of court, or won in trial. When we take on a case, we are confident in our ability to advocate for your rights, and obtain a fair settlement.
Other Expenses
Aside from the contingency fee, cases (especially ones which go to trial) acquire expenses that come out of the settlement. These vary case to case, and include expenses from gathering medical records, hiring experts, filing a lawsuit, etc.
For example, let’s say the awarded settlement in a case is $200,000. There are $10,000 in expenses, which means the recovery before the attorney fee is $190,000. ($200,000 – $10,000 = $190,000).
The contingency fee of 40% is applied to the $190,000, resulting in a net recovery of $114,000. ($190,000 – 40% = $114,000).
Higher vs. Lower Contingency Fee Percentages
As previously mentioned, the contingency fee can vary depending on the complexity of your case, and is always discussed between you and your attorney.
Don’t be swayed by an attorney based on the quoted percentage. Many times, you get what you pay for. A good attorney working on a 40% contract, may get you more money than the attorney who offered to handle your case for 30%. Especially if the attorney is confident in taking the case to trial, the contingency fee may be closer to 40%. A high-volume law firm aiming to settle quickly and out of court will try to keep their fee lower.
Let’s say an attorney offering a 30% contingency fee results in a settlement of $85,000 after expenses. This results in a net recovery of $59,500 for the client. ($85,000 – 30% = $59,500).
But, an experienced attorney offering a 40% contingency fee will find every category of damages that apply to your case, and seek every avenue of insurance coverage that will support those damages. This results in a settlement of $180,000 after expenses. Totalling a net recovery of $108,000 for the client. ($180,000 – 40% = $108,000).
