What Is a Contingency Fee & What Does It Mean for My Case?

If you find yourself in need of legal representation, you may be concerned about the cost of hiring an attorney. Fortunately, there is a way to hire a great lawyer without worrying about upfront legal fees and initial out-of-pocket costs: the contingency fee. The question is, what is a contingency fee & what does it mean for my case?

A contingency fee is a payment arrangement between a lawyer and their client where the lawyer agrees to take a percentage of the client’s recovery as payment. This means that the client does not have to pay anything upfront for the lawyer’s services because the legal fees are contingent upon a successful outcome.

Types of Lawyers That Work on Contingency

Contingency fees are commonly used in personal injury cases, where the client has been injured due to someone else’s negligence. In these cases, the personal injury attorney typically takes a predetermined percentage of the client’s settlement or court award. Cases that are often taken on a contingency basis include:

• Car accidents
• Slip and falls
• Dog bites
• Workplace injuries
• Medical malpractice
• Wrongful death
• Workers’ compensation
• Social security disability
• Employment law
• Civil rights
• Class actions

Contingency fees can be a great option for people who cannot afford to pay for legal representation upfront. Additionally, it creates a partnership or an incentive to get the most favorable results possible in a personal injury claim, as you are both in it together.

Average Contingency Fees

Montana has some of the lowest average hourly attorney fees in the country, at $234 per hour. On average, attorneys who are paid on a contingency basis take ⅓ of the client’s recovery, but this percentage can vary. More experienced attorneys typically charge higher contingency fees than those who are just getting started in their practice. Lawyers may also charge higher contingency fees for more complex cases.

According to the State of Montana, contingency fees must be reasonable. Reasonableness is determined by:

• Time and labor required to resolve the case
• Difficulty of the questions involved
• The skill required to perform the legal services
• Likelihood that accepting the case could preclude other employment
• Fees customarily charged for similar services in the area
• The amount of money involved
• The time limitations imposed by the circumstances or the client
• The nature and length of the lawyer’s professional relationship with the client
• The experience, reputation, and ability of the lawyer providing services

All attorneys must follow contingency fee laws when charging their clients for cases. That includes providing you with information about the scope of their representation and how much they plan to charge when you hire a personal injury lawyer.

How to Choose a Lawyer Who Works on Contingency

So, how can you hire a great lawyer who works on a contingency fee? Here are some tips:

• Do your research. Look for law firms in your area that have experience with the type of case you have. If you were in a car accident, you’ll want to make sure this lawyer actually handles car accident cases. Read reviews and ask for referrals from friends or family members who have been in a similar situation.
• Meet with the lawyer. Many personal injury law firms offer free consultations, so take advantage of this opportunity to meet with a potential lawyer and discuss your case. During this meeting, ask about their experience and success rate in similar cases.
• Ask about their communication policy. You want to hire a lawyer who can keep you informed throughout the process and answer any questions you may have.

At Bliven Law Firm, P.C., we understand that legal issues can be stressful and overwhelming. For over 35 years, our attorneys have worked hard to get good people the compensation they deserve. We handle all personal injury matters on a contingency fee basis, which means we collect no legal fees unless we successfully obtain a verdict or negotiate a settlement on a client’s behalf.

FAQs

Q: What Is the Downside of a Contingency Fee?

A: There are several downsides to contingency fees. The cost can be high if you get a substantial settlement and the attorney gets the full percentage, meaning that if your case is resolved quickly with minimal effort, you pay a significant premium for your lawyer’s time. Since lawyers who work on contingency are assuming a financial risk, they’re also highly selective about what cases they take. They rarely take cases with weak odds of winning or low potential damages.

Q: What Types of Cases Cannot Be Taken on a Contingency Basis?

A: Types of cases that cannot be taken on a contingency basis are criminal cases and family law cases. This arrangement is prohibited in criminal cases to make sure that lawyers don’t have a financial incentive to encourage plea bargains or alter their strategies based on how much of a client’s avoided fees or fines they could otherwise attain. In family law cases, it’s prohibited to make sure lawyers don’t have a financial stake in prolonging family disputes.

Q: What Is a Normal Contingency Fee for a Lawyer?

A: There is no such thing as a normal contingency fee. Factors that can influence how much your personal injury attorney charges can include the lawyer’s level of experience and whether your case goes to trial. In some cases, attorneys charge higher contingency fees for cases that go to trial because they tend to require significantly more work.

Q: What Should I Ask Before Agreeing to a Contingency Fee?

A: Before agreeing to a contingency fee, you should ask exactly what percentage the lawyer plans to take, whether the percentage is applied to the gross or net settlement, and who pays for case expenses if you lose. If your case is successful, costs like filing fees and expert witness payments usually come out of your settlement. If it’s not, you might be responsible for paying these expenses despite the fact that your attorney is working on contingency.

Hire a Personal Injury Lawyer Today

Contact us today to schedule a free consultation and learn more about how we can help you. Located in Kalispell, we serve clients in Montana and Oregon. We are dedicated to providing high-quality legal representation to clients throughout these states.