What is a Contingency Fee in a Personal Injury Case?

Most lawyers charge by the hour. They usually require a retainer, which could range anywhere from $5,000 to $50,000, just to reserve their time. Clients are then billed against that retainer as work is performed, and once the retainer runs out, they must replenish it if they want the lawyer to continue working.

Personal injury cases, however, are typically handled on a contingency fee basis. This means the client pays nothing out of pocket upfront. The attorney’s fee is contingent upon recovering compensation. If there is no recovery, the client owes no attorney’s fee.

Throughout the life of a case, there may be expenses such as filing fees, hiring expert witnesses, or obtaining records. These costs are advanced by the firm on the client’s behalf. If the case results in a recovery, the firm is reimbursed from that recovery. If there is no recovery, the firm absorbs those expenses.

The advantage of a contingency fee arrangement is that it allows more people to access quality legal representation without the financial risk of paying thousands of dollars out of pocket with no guaranteed outcome. While no result is ever guaranteed in litigation, clients can rest assured that if there is no compensation, they will owe nothing to the attorney.

Contingency fees also make legal services accessible to people who might otherwise not be able to afford them, since payment only comes out of the recovery at the end of the case. Each market has an average contingency fee percentage, which may adjust if the case proceeds to litigation. Unlike many firms that treat their percentages as non-negotiable, at The Kaufman Law Firm we are business-minded and willing to discuss fair fee arrangements before entering into a representation agreement.