Definition of Contingency Fee
A contingency fee is a payment method used to hire a lawyer by paying the lawyer a percentage of the compensation awarded after the claimant wins the personal injury case. The contingency fee allows claimants in a personal injury case to avoid paying a retainer fee to a lawyer to hire them to help them with their case.
Using the contingency system of payment for legal disputes has drawbacks. For instance, for some types of cases it will be very difficult to find legal assistance if a lawyer does not think they can win your case. Additionally, contingency fees can be very high for some types of injury cases which means if you are successful you could end up paying a high percentage of your compensation award to the attorneys. Consider also if you have hired a lawyer under a contingency fee agreement you may still be charged for certain expenses. All expenses should be discussed and outlined in a contract prior to hiring a lawyer.