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Contingency Fee

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Contingency Fee

When someone is injured in a car accident or any other incident due to negligence, legal costs can feel overwhelming. Many wonder how they can afford an attorney when dealing with medical bills, missed work, and stress.

Fortunately, most personal injury lawyers use something called a contingency fee agreement. This payment structure makes legal help accessible to everyone, not just those with extra money in the bank.

In this article, we’ll explain a contingency fee, how it works, what percentage lawyers usually charge, and why it benefits injury victims.

What Is a Contingency Fee?

What Is a Contingency Fee?

A contingency fee is an arrangement between a lawyer and a client where the lawyer only gets paid if the case is successful. Instead of paying hourly fees or a large retainer, the attorney receives a percentage of the settlement or court award.

If the case is unsuccessful, you usually don’t owe the lawyer any attorney’s fees. This fee structure shifts the financial risk from the client to the lawyer.

How Do Contingency Fees Work?

Here’s a simple breakdown of how contingency fees work in personal injury cases:

  • No Upfront Payment – You don’t have to pay anything at the beginning of the case.
  • Percentage of Recovery – The lawyer takes a set percentage of the settlement or verdict as payment.
  • Expenses and Costs – Case-related expenses (such as filing fees, expert witnesses, or medical records) may be deducted from the final settlement. The agreement will explain how these costs are handled.
  • Only if You Win – If you don’t receive compensation, your lawyer usually doesn’t get paid.

This makes it easier for accident victims to pursue justice without worrying about how to pay for legal representation.

What Percentage Do Personal Injury Lawyers Charge?

The percentage charged in a contingency fee arrangement varies. Most personal injury lawyers charge between 33% and 40% of the settlement or award.

However, the exact amount depends on factors such as:

  • The complexity of the case
  • Whether the case settles quickly or goes to trial
  • The amount of work required

For example, a lawyer might charge 33% if the case settles before filing a lawsuit, but increase the fee if the case requires a trial.

You should always review your written contingency fee agreement to understand how costs will be calculated.

Why Do Lawyers Use Contingency Fees?

Contingency fees exist to give everyone fair access to justice. Without them, many accident victims could not afford legal representation.

Benefits for Clients:

  • No Financial Risk Upfront – You can hire a lawyer without worrying about paying hourly rates.
  • Aligned Interests – Your lawyer has the same goal as you: winning the case.
  • Access to Justice – Even if you don’t have savings, you can still pursue compensation.

Benefits for Lawyers:

  • Motivation – Lawyers are motivated to achieve the best possible outcome because their payment depends on it.
  • Efficient Representation – They typically focus on cases with substantial legal merit, which helps manage client expectations.

In short, contingency fees create a win-win situation where clients can pursue justice without upfront costs, and lawyers are motivated to fight for the best possible outcome.

Are There Any Downsides?

While contingency fees are beneficial, there are some things you should keep in mind:

  • You May Receive Less of the Settlement – Since a portion goes to attorney fees, you won’t keep the entire amount.
  • Case Costs May Still Apply – Court filing fees, expert witnesses, and other costs may be deducted from your recovery.
  • Percentages Can Vary – Some lawyers may charge more depending on the circumstances.

It’s important to ask questions and review your agreement before signing so you fully understand the terms.

Contingency Fees and Personal Injury Law

Contingency fees are widespread in personal injury law, including cases involving:

These cases often involve significant financial losses for victims. Contingency fees allow injured people to pursue justice without adding more financial strain.

Contact the Anchorage Personal Injury Attorneys at Farnsworth & Vance Personal Injury Lawyers for a Free Consultation

If you’ve been injured in an accident, understanding contingency fees can give you confidence to seek legal help without financial stress. Farnsworth & Vance Personal Injury Lawyers fights to get clients the compensation they deserve, and we don’t get paid unless you win.

Contact our team today at (907) 290-8980 to schedule a free consultation and learn how we can help you move forward.