Legal Jargon Explained: What is a “Contingency Fee”?
We know for many that the language of the law can be intimidating to understand. After all, if you do not work in the legal world, you probably will only encounter legal jargon in your daily life if you ardently watch Law & Order reruns. When visiting a lawyer about their case, many may already be anxious, legal jargon aside.
At Deratany & Kosner, we strive to make the legal process as easy and stress-free as possible for our clients. That is why we want to unpack some of our terminology so that you can have more peace of mind when you visit a lawyer.
One term you will likely come across early on with a law firm is “contingency fee.”
A contingency fee is a type of fee arrangement that is commonly used in personal injury cases. Frequently, a contingency fee will be a portion of the proceeds obtained by the client due to the litigation or settlement, or it may be the number of attorney fees accrued but not billed to the client until the successful conclusion of the case. It is an agreement between the lawyer and the client that the lawyer will only receive payment if they win the case. If the lawyer loses the case, they do not accept any payment.
Contingency fees can be beneficial for both the client and the lawyer. The client does not have to pay upfront legal fees and can pursue legal action without the added financial burden. The lawyer is incentivized to work hard and win the case because their fee is contingent upon a successful outcome.
For many people seeking legal representation, paying a lawyer upfront can be daunting, especially in personal injury cases where the injured party may already face financial strain due to medical bills and other expenses. Individuals can pursue legal action free from the added stress of upfront legal fees by utilizing a contingency fee.
If you have any questions about contingency fees or any other legal matter, please do not hesitate to contact us. We are here to help you.