A contingency fee lawyer provides services for a fee that only becomes payable in the event of a favorable outcome for the client. The amount of the contingency fee varies, usually depending on the size of the client’s recovery and whether or not the lawyer has to go to trial versus reaching a settlement. This type of lawyer enables individuals of low-income to exercise their rights without fear of running up a substantial debt.

Advantages of Contingency Fee Lawyers

As well as providing legal expertise for people of low-income, a contingency fee lawyer has a greater incentive to achieve a favorable result than a standard lawyer does. In the event of a negative outcome, a contingency lawyer will receive no payment for his time or work; therefore, it is in the lawyer’s interest, as well as the client’s, to work as hard as possible to achieve a win.

Disadvantages of Contingency Fee Lawyers

Unfortunately, because a contingency lawyer may not be paid for their representation, they often only choose cases they believe have a greater chance of winning. This is known in law as “cherry picking.” Some cases are turned away even before the potential outcome is clear. This is because even the initial assessment and investigation of strength is expensive and not always worth the lawyer’s time and effort.

Fee Structure

In the event of a favorable outcome, a contingency lawyer’s fee will vary depending on the size of the award, the state the case is in, and the jurisdiction. Usually the fee is a pre-agreed percentage of the recovery. The amount of the fee is subject to strict rules regarding reasonableness and professional conduct. This is to prevent unethical behavior, on behalf of not only the attorney, but also the client.

A typical contingency fee is 30% - 33% of the recovery if there is a settlement, and 35% - 40% if there is a trial. Expenses incurred by the lawyer (such as depositions and filing fees) are deducted from the recovery to reimburse the lawyer.

The Law

Contingency lawyers are not permitted to represent criminal and family cases in most jurisdictions in America. Personal injury cases are the most common case to take advantage of contingency lawyers. However, casinos in the state of Nevada are known to regularly use contingency fee lawyers to prosecute cases of petty theft.