I hear personal injury attorneys advertise that they will work on a "contingent fee." What does that mean?
A contingent fee is a fee that is payable only in the event the case is successful. No fee is owed if the case is not successful.
In personal injury and wrongful death cases some attorneys will accept the case for a percentage of the recovery. For example, if an attorney agrees to accept representation in a case on a one-third contingent fee, that means that the attorney will not charge any money if the case is lost. If the case is successful the attorney will be paid one-third of the total recovery. For example, if the recovery is $60,000, the attorney’s fee is $20,000. If the case is lost, the attorney charges no fee for the work performed on the case.
The advantage of the contingent fee for the client is that he or she does not have to pay an attorney a flat fee ( a set amount) or an hourly fee to handle the case. Rather, he or she can wait and pay a fee at the end of the case and, if the case is unsuccessful, there is no obligation to pay any fee whatsoever.