Legal battles are serious matters that can damage your mental health and financial situation. Without professional legal representation, they may not be worth fighting.
Typically, most lawyers charge upfront legal fees to file a claim in court, which can be challenging to manage, especially for those with financial constraints.
In contrast, a contingency fee agreement is a payment structure that offers an excellent alternative to conventional billing frameworks.
According to this arrangement, a lawyer will receive compensation only when the case settles favorably for their client. No fees are owed to the attorney if a successful settlement is not reached.
Lawyers offer contingency fee agreements to ensure legal representation is accessible to clients with fewer financial resources. Although this arrangement places the financial risk on the attorney, it motivates them to work diligently and achieve a suitable verdict for their client.
What Is a Contingency Fee Arrangement?
Unlike a flat or hourly fee, a contingency fee arrangement is a payment model in which an attorney receives a percentage of the client’s monetary award. The client will pay the lawyer only if the case is successful.
It is worth noting this type of agreement fosters a risk-sharing relationship between the attorney and the client. The lawyer assumes the financial risk by investing time and resources without receiving payment upfront.
If the case is lost, the client owes nothing. Therefore, it is an attractive option for those with limited financial means.
Advantages of Contingency Fees for Lawyers
Contingency cases promise multiple benefits for lawyers. For instance, they can take on more cases while serving a broader range of clients. Likewise, a contingency fee lawyer enjoys a more diverse client base, potentially increasing their caseload.
The prospect of a larger payment upon a successful case resolution may motivate lawyers to invest extra effort and resources into contingency cases.
A contingency fee basis also helps balance a lawyer’s workload and profitability. Success in high-value cases can offset the losses incurred from unsuccessful ones.
How Do Clients Benefit from Contingency Fees?
Undoubtedly, contingency fees also provide advantages to clients, especially those with limited financial resources.
The most notable benefit is the elimination of upfront costs, which allows them to pursue legal claims without worrying about initial costs like attorney fees.
Secondly, the client pays if the case is won. This means the monetary risks involved are transferred to the attorney. Consequently, the clientele can access skilled legal representation even if they cannot afford to pay a flat or hourly fee.
Contingency cases may motivate lawyers to work tirelessly and secure maximum settlements. When a lawyer’s success is aligned with the clientele’s, the chances of success improve exponentially.
Types of Cases That Use Contingency Fee Arrangements
Typically, lawyers take contingency fees in cases where the client faces significant monetary strain and seeks fair compensation for damages. These cases include personal injury cases like car accidents or slip-and-fall incidents.
Lawyers may also agree to contingency fees for medical malpractice cases in which the client cannot afford legal fees while facing mounting medical bills and lost income. Consequently, it enables the client to afford legal assistance without further straining their financial situation.
Also, wrongful death cases frequently operate on contingency fees, as families pursuing justice may be overwhelmed by the emotional and financial burdens caused by their loss.
Other contingency cases may include employment law disputes, wrongful termination, and workplace discrimination.
Examples of Contingency Fee Structures
Generally, charging contingency fees follows a standard model where the lawyer is paid a set percentage of the client’s settlement.
In most cases, this percentage is around 33%. So, if the case ends with a desirable outcome, the lawyer takes the standard contingency fee, which is one-third of the total recovery.
However, in some cases, a sliding scale structure is applied. According to this structure, the percentage of the lawyer’s fees is scaled according to the amount recovered. For instance, for a recovery of 50% of damages, the lawyer is paid 17% of the total amount, and so on.
Meanwhile, contingency fees may also be capped by law in complex cases like medical malpractice. The idea behind these caps is to ensure that contingency fees remain fair and the client retains a significant portion of their awarded damages.
When Contingency Fees May Not Be Ideal
While contingency fees are beneficial in many cases, they may not be the best option for every legal matter.
Low-Value Cases
Low-value cases, for instance, may not justify a lawyer’s time and effort, as the potential reward might not cover their fees.
Lawyers may be reluctant to take on the risk of contingency fees if the liability is unclear or the likelihood of a settlement is uncertain.
Complex Business Disputes
Similarly, hourly billing is a more appropriate option in complex business disputes or legal matters involving minor financial stakes.
Cases involving Extensive Research
A traditional fee method rather than charging contingency fees is better for cases that require extensive research or involve multiple parties.
Get Justice Without Financial Worry
Pursuing legal action can feel overwhelming, considering the financial concerns that come into play. However, hiring a contingency fee lawyer removes the burden of upfront costs, helping clients seek justice without hesitation.
In contingency fee arrangements, a lawyer takes payment only if they work in their client’s best interests and win the case. This ensures they are fully invested in the case, as the lawyer’s payment depends on it.
By choosing a contingency fee lawyer, clients get an advocate inclined to maximize their recovery through settlement or trial victory.
Now, you don’t have to worry about paying legal fees during an already challenging time.
Contact Rosenfeld Injury Lawyers for a Free Case Evaluation
If you are considering legal action but are concerned about the costs, Rosenfeld Injury Lawyers can help. Rosenfeld Injury Lawyers is a reputable Chicago injury law firm that prefers contingency fee arrangements. This means you will only pay if your case is successful.
You can obtain experienced legal assistance without considering the initial fee. The team at Rosenfeld Injury Lawyers is fully dedicated to securing the best possible outcome for each client while ensuring that justice is served.
Contact us today for a free case evaluation and take the first step toward receiving the compensation you deserve.