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All You Need To Know About Contingency Fees

Many times when people get into an accident due to some other party’s fault, they are scared to file a compensation claim due to the thousands of dollars of legal fees involved. However, they fail to realize that almost all personal injury cases are handled on a contingency fee basis, and they do not need to pay upfront for any legal services. 

Contingency fee lawyers do not charge anything until they win you a fair settlement from the at-fault party’s insurance company. You may contact an Atlanta personal injury attorney to know more about it. 

What is the meaning of a contingency fee?

The term “contingency” may appear confusing and complicated, but its meaning is quite straightforward. When you hire a lawyer that works on a contingency fee basis, they will not demand a fee for their services until you win your case and obtain fair compensation. 

Here, the lawyer makes an arrangement with you of taking a certain percentage of your settlement as their attorney fees, which means they only get paid once you get the money in your hands. And in case you do not, they do not earn any money as well. 

This might seem like a risky deal for a lawyer, but the underlying reward is often worth it. A contingency fee arrangement gives a lawyer an incentive to work their best to obtain the highest compensation for you and as soon as possible. 

One little detail we might add is that you will probably have to pay the court fees out of your pocket. These may include filing fees or costs related to paying witnesses. 

Are there any cases that do not allow contingency fees?

Contingency fee arrangements have their benefits for both the client as well as the attorney. However, they are restricted in some cases by the law. 

  • Clear-cut cases.

If the result of the case is clearly apparent, that is, if it looks like you are obviously going to win the case, your attorney should tell you the truth. An attorney must not take advantage of their clients’ circumstances for their monetary gain. 

  • Criminal and family law cases. 

In Louisiana, it is prohibited to work on a criminal or family law case on a contingency basis as it would appear they condone unlawful activity and encourage divorce. 

What is the standard contingency fee?

Contingency fees can vary from lawyer to lawyer and from case to case. There is no standard amount for the fee, but most lawyers accept a standard percentage. Personal injury lawyers charge one-third of the client’s total compensation in the end and 40% if the case goes to trial.

If you were afraid of not being able to pay for attorneys, we hope this blog has provided some relief to you. People often think they have no options left, but the legal world is more vast than they think. Contact an attorney today.