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What Is A Contingency Fee Agreement?

Posted on 02/08/24

Paying for an attorney may seem like an impossibility, but it does not have to be. Often, attorneys will handle claims on a contingency fee basis. This is not available for all types of cases, but it is a prevalent type of payment plan for personal injury claims. Contingency fees allow individuals to afford an attorney by temporarily postponing legal fees until after the conclusion of a claim. Here, we want to delve into exactly what a contingency is and what it can mean for your particular situation.

The Attorney Covers Upfront and Ongoing Case Costs

In a contingency fee arrangement, attorneys usually cover all upfront and ongoing costs related to the case. This includes expenses for gathering evidence, court fees, and other necessary expenditures to build and present the case. The understanding is that these costs will be reimbursed to the attorney from the compensation received at the conclusion of the case.

A Client Only Pays Legal Fees if The Attorney Recovers Compensation

The overwhelming benefit of a contingency fee agreement is that the client is only obligated to pay legal fees if the attorney successfully recovers compensation on their behalf. This aligns the interests of both the client and the attorney toward achieving a favorable outcome and significantly lowers the risk of proceeding forward with a claim on the part of the injury victim.

What Will the Final Legal Fee Be?

Typically, the final legal fee in a contingency fee arrangement is a predetermined percentage of the settlement or judgment amount, ranging between 30% and 40%. The exact percentage can vary depending on the complexity of the case and whether it is resolved before trial or requires litigation. The good news is that there will be no surprises about your legal fee. Your attorney will not even begin work on your case until the contingency fee percentage is agreed upon. You will know, going into your claim, what percentage of the final settlement or jury verdict you will receive and what percentage you will have to pay in legal fees before moving forward.

No Legal Fees if The Case is Not Won

If the case is not successful and no compensation is awarded, the client does not owe any legal fees to the attorney under a contingency fee agreement. However, it’s essential to understand whether you might be responsible for any case-related costs or expenses, even if no compensation is received.

Why is a Contingency Fee Needed?

A contingency fee arrangement is crucial as it provides access to legal representation for individuals who may not have the resources to afford an attorney upfront. This ensures that justice and legal recourse are accessible to all, regardless of financial status. This is fair, and it is right. At Nevarez Law Group, we understand that individuals may need help when it comes to holding negligent parties responsible. Our Laredo injury lawyers want to provide that assistance, and a contingency fee is one of the best ways that we can do this.

Will an Attorney Take Your Case?

We encourage you to reach out to an attorney for a free consultation of your claim. There are specific parameters in place related to evaluating the potential success of an injury claim. Your attorney can examine the facts of your particular case and help you determine the next move forward.