What is a Contingency Fee Agreement?

contingency fee

If you’ve been injured due to someone else’s negligence, you can take legal action to seek monetary compensation for the damages you’ve endured. However, depending on your financial circumstances, you may not have the funding to acquire adequate legal representation. It should come as no surprise that paying an attorney an hourly rate to prosecute your case can be incredibly expensive. As such, a contingency fee agreement may seem like the solution to all your problems. This arrangement can help you safeguard your right to compensation without having to pay your attorney fees upfront. While contingency fee agreements have numerous advantages, they may not be suitable for every case. Before agreeing to any contingency fee arrangement, you should thoroughly review the contract and clarify the terms. Please continue reading to learn what a contingency fee agreement entails and how a seasoned Morris County Personal Injury Attorney can help you navigate your legal options.  

How Does a Contingency Fee Agreement Work?

A contingency fee agreement is a legal agreement that allows you to hire an attorney without paying any out-of-pocket expenses upfront. Instead of charging an hourly rate for their legal services, an attorney will receive a percentage of any monetary recovery they help their client recover. Their payment is contingent on receiving monetary compensation at the end of your claim. They will only get paid for their services if your case is won. If you don’t win, you won’t owe any attorney fees.

What Are the Advantages?

Contingency fee agreements offer numerous advantages, as your interests align perfectly with your attorney’s. When your attorney only gets paid if you are awarded compensation at the end of your claim, they will be highly motivated to fight for the maximum damages on your behalf. You can rest assured that your attorney will do everything possible to win your case. They won’t receive any monetary payment if the case is won.

Unlike a retainer fee, the most significant benefit of this arrangement is that you don’t have to pay any legal bills upfront. Depending on the severity of your injuries, your medical bills may begin to mount, and your injuries may prevent you from working. As such, no upfront fees will alleviate the financial burden associated with a personal injury and enable you to focus on your recovery. In addition, there are no expenditures if your case is lost. You will not have to pay any fees to your attorney if your case is lost. It’s important to note that you may still need to pay administrative expenses.

What Are the Potential Pitfalls?

While there are various benefits to contingency fee agreements, you should also keep some things in mind before opting for this arrangement. Your case’s complexity and risk will affect the percentage used to calculate your contingency fee. Therefore, you may end up agreeing to a contingency fee that could be significantly more than if you paid an hourly rate for their legal services.

If you or someone you love has been injured due to another party’s negligence, please don’t hesitate to contact a determined attorney from Lutz Injury Law, who can help guide you through your legal options and fight for the justice you deserve.

  • This field is for validation purposes and should be left unchanged.