A contingency fee is a billing agreement between a client and their attorney where the attorney receives pay as a percentage of any awarded money. Rather than an hourly legal fee, a contingency fee arrangement means that the attorney will not receive any payment until the completion of the lawsuit and only if the suit is successful. As such, the law firm’s fee is contingent on winning the case and receiving financial compensation from a third party.
Law firms are businesses, and though they may take on a select few pro-bono cases, attorneys need to be paid for the services that they provide. A contingency fee allows for these expenses to be paid only later once the money is available. This type of arrangement is especially common with a suit involving a workplace accident, car accident or wrongful death.
When is a contingency fee used?
Contingency fees are advantageous in situations where a client has limited funds. Law firms almost always are willing to take on a case in an instance of clear liability or fault, and where there is a meaningful way to collect compensation, as with an insurance policy. Since the law firm accepts the risk that they may not be paid unless they succeed, it is at their discretion whether to take on the case or not. Contingency fee agreements are almost exclusively used in civil matters such as workers’ compensation or personal injury. In fact, law firms such as Williams Hart & Boundas work only on a contingency fee structure.
How does a contingency fee work?
Following an initial consultation with an attorney, you will normally sign an agreement which states the percentage that their law firm will receive of any amount recovered for compensation in your case. The percentage can vary depending on the specifics of your case, how long it will likely take for your attorney to complete your case, the amount awarded, and whether your case is settled or goes to court. Not unlike any other service, you get what you pay for, so more experienced law firms with better reputations may charge a higher contingency fee. Howe’ver, these firms may also have the knowledge needed to get you higher compensation.
Are expenses included in contingency fees?
The signed agreement should also state how administrative fees will be paid. At times, the expenses for document copying, court filing fees, travel, and calling upon experts may be fronted by your legal team, whereas sometimes the client needs to pay upfront. Nevertheless, these expenses will need to be paid, so even if your legal team fronts the bill, it would be reimbursed from any compensation awarded to you.
What does an attorney charge for a contingency fee?
Contingency fee payments in Texas, by law, must be reasonable. The exact amount is dependent on a vast number of factors, including the complexity of your case, the time and labor required, the experience of the attorney, and circumstances, to name but a few. Regardless, contingency fees generally range from 25-45%, but payment will be solely dependent on winning your case.
Williams Hart & Boundas believes that everyone is deserving of a top-quality attorney. This is why their Houston based law firm only accepts cases on a contingency basis, so you and your family can be assured the best legal representation.
