Contingency Fees 101

You might be wondering why attorneys differ in their manner of charging their professional services to their clients. Some of them prefer handling cases on a retainer basis while the others choose to work on a flat rate. But most attorneys charge on a contingency basis. Generally, it all depends on the kind of case which an individual will ask an attorney to resolve. This article will tackle all about the better mode of charging professional fees; the Contingency Basis.

Between the two modes of payment, majority of the personal injury legal counsels charge a fraction of the amount of the total monetary damages which his client was able to recover. Commonly, this percentage ranges from 30% to 40%, then again, depending on the attorney’s view on the difficulty of the case and how much does the claimant can gain from it if ever the claim was granted. Hence, in some simple cases, a legal counsel may just charge his client with a much lower rate. This mode of charging their clients is what they call as contingency basis.

In contingency basis, the attorney’s fee is dependent upon the success of the claim. Meaning, he may get a percentage of the client’s compensation if only the claim was favored by the court or the insurance company; otherwise he may not get any amount from it if in case his client’s claim was disapproved. However, this can be beneficial to both the client and the attorney. Obviously, a legal counsel, who may charge up to 40% of the total amount of recovered monetary damages, will receive larger payment depending on the amount that his client has acquired. This would also mean that the larger the amount of recovery, the larger the cost of his professional fee.

As for the client, he may not worry much on where to look for the money to pay for his attorney’s fee. It is just like hiring a legal defender for free; as for the moment until the case was finally resolved. In some instances, an attorney may even carry the burden of paying for the requirements in order for his client’s claim to initiate and subsequently pursue. These may include gathering document and evidences such as medical records and statements of the witnesses, hiring expert witnesses and filing fees among others. The attorney may just add the cost after the claim succeeded.

In contrast, working in a contingency basis is quite risky on the part of the attorney. Aside from the money he needs to spend to pursue the case, he may also need to undergo a lot of work in order to win the legal battle. If not, he may loose every thing including the percentage of the possible compensation of his client. It is much like gambling wherein a person spends money and effort to obtain winnings.

Finally, in searching for the right attorney for a certain type of case, an individual should give importance on how this legal counsel charges his client. This is to avoid being shocked regarding the cost of his legal services at the end of the case.


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