A contingency fee is a payment arrangement in which an attorney’s compensation is contingent upon the successful outcome of a case. Under this arrangement, the attorney agrees to represent the client without charging any upfront fees. Instead, the attorney’s fee is calculated as a percentage of the monetary recovery obtained for the client, typically through a settlement or court judgment. If the client does not win the case or recover any money, the attorney receives no fee. Contingency fee arrangements are commonly used in personal injury cases and allow clients who may not have the financial means to afford legal representation to pursue claims without upfront costs. They also incentivise attorneys to work diligently to achieve favourable outcomes for their clients.
A contingency fee is a payment method used to hire a lawyer by paying the lawyer a percentage of the compensation awarded after the claimant wins the personal injury case. The contingency fee allows claimants in a personal injury case to avoid paying a retainer fee to a lawyer to hire them to help them with their case.
Using the contingency system of payment for legal disputes has drawbacks. For instance, for some types of cases, it will be very difficult to find legal assistance if a lawyer does not think they can win your case. Additionally, contingency fees can be very high for some types of injury cases which means if you are successful you could end up paying a high percentage of your compensation award to the attorneys. Consider also if you have hired a lawyer under a contingency fee agreement you may still be charged for certain expenses. All expenses should be discussed and outlined in a contract prior to hiring a lawyer.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/contingency-fee/
- Modern Language Association (MLA):Contingency Fee. dlssolicitors.com. DLS Solicitors. April 18, 2024 https://dlssolicitors.com/define/contingency-fee/.
- Chicago Manual of Style (CMS):Contingency Fee. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/contingency-fee/ (accessed: April 18, 2024).
- American Psychological Association (APA):Contingency Fee. dlssolicitors.com. Retrieved April 18, 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/contingency-fee/
