Understanding Contingency Fee Agreements

Contingency fees offer personal injury clients a valuable advantage. They enable anyone who suffers an injury to bring a lawsuit without having the money up-front to pay an attorney. With contingency fees, attorneys agree to accept a portion of the recovery and agree that if the client does not win and there is no recovery, there will be no fee. Why does the contingent-fee system serve clients and work so well? Contingency fees…

■ give everyone—regardless of race, color, religion, national origin, gender, marital status, age, or other factors—an equal chance to have their day in court no matter what their financial resources may be. Individuals with limited assets can sue the richest, most powerful corporations, which often have unlimited money for legal defense fees.

■ promote efficiency and discourage frivolous lawsuits by motivating lawyers to make sure that the cases they accept have legitimacy and merit.

■ are fair, since there is no cost to the client unless he or she wins.

■ provides an incentive for the attorney to excel and reach the highest settlement possible.

TYPES OF CASES SUITABLE FOR CONTINGENCY FEES:

Not every case is governed by these agreements. In matters, such as criminal cases or matters pertaining to child custody, divorce settlements or other family law cases, contingency fee arrangements may be prohibited.

Contingency fees are most commonly used in personal injury cases, but there are other types of cases that use this type of agreement, such as:

  • Medical malpractice
  • Product liability
  • Class action lawsuits
  • Environmental lawsuits
  • Employment discrimination

By allowing lawyers to get paid if a case is successful, contingency fees motivate the attorney to work diligently to get the best possible outcome for their clients. If you are considering using a contingency fee agreement for your personal injury case, it is important to choose a reputable, experienced attorney, like those at Traut Firm.

Contact our firm today at 714-835-7000 for a free consultation to discuss your case.