A frequent question from our clients is how do contingency fees work? We do almost all of our personal injury work on a contingency fee basis. That means the fee is a percentage of the amount we recover for the client. Depending on the kind of case, contingency fees can range from 25% to 40%. Also depending on the kind of case, certain amounts recovered are not subject to the contingency fee. There is an infinite variety of ways to structure a contingency fee.
Contingency fees have significant advantage over hourly fees. If you hire a lawyer on an hourly basis, typically they are going to require an upfront payment and then bill monthly. The attorney will expect to get paid monthly. If the client stops paying, then the attorney will stop working and move to terminate the relationship. Most insurance companies pay their lawyers either on an hourly basis or sometimes on a flat fee basis. In a contingency fee case, the lawyer gets a part of the recovery. Said another way, the lawyer doesn’t get paid unless the client gets paid. Often times our cases run on for years, and most clients can’t afford to pay attorneys on an hourly basis for years. Our clients prefer contingency fees because it is financially the best way for them to hire a lawyer to protect their interest.