Contingency fee representation is not an area of law in itself but a way that legal fees are arranged, used most often in personal injury and other claims for money damages. Under a contingency fee agreement, the client does not pay the lawyer an hourly rate up front. Instead, the lawyer's fee is a percentage of any money recovered through a settlement or award. If there is no recovery, the lawyer generally does not collect a fee.
This arrangement is designed to make legal help accessible to people who could not otherwise afford to pay a lawyer by the hour, particularly injured individuals facing medical bills and lost income. It also aligns the lawyer's interest with the client's, since the lawyer is paid only if the client recovers.
Several concepts are important for a non-lawyer. The fee percentage and how it is calculated should be set out in a written agreement. Case costs and expenses — such as filing fees, expert witnesses, and records — are separate from the fee, and the agreement should explain who advances them and how they are repaid. Contingency fees are common in injury cases but are restricted or prohibited in certain matters. Anyone considering this arrangement should read the agreement carefully and ask questions before signing, since the terms determine what the client ultimately keeps.
