What Are Contingency Fees?
In most law practices, attorneys receive a fee for the legal services they provide. However, in the event of a car collision, a slip and fall incident, or other deadly injuries, you may find yourself in need of legal representation but you may not have the resources for the same. The ‘contingency fee’ structure exists to help such victims.
Contingency fees are charged for:
- Motor vehicle collisions, workplace accidents, and other personal injuries
- Defective products that lead to injuries
- Premises liability cases
There are times when contingency fees are also charged for:
- Hourly wage issues
- Recovering massive debts
However, contingency fees are not applicable in the following cases:
- Starting a business
- Registering copyright, trademark, or patent
- Criminal cases
Contingency fee based on complexity and risk:
The more risky and complicated a case is, the higher will be the percentage you may have to pay for the recovery. On the contrary, a relatively straightforward case may require you to pay a lower contingency fee.
Added Litigation Costs
Even if an attorney agrees to work on a contingency fee structure, there are always costs associated with filing a personal injury lawsuit, some of which are as follows:
- Investigation costs and charges for obtaining evidence: Procuring copies of medical records and public documents can cost a few dollars in a single case.
- Witnesses’ fee: For building a strong case, you would always need the help of expert witnesses who can potentially charge as much as an attorney. In fact, they may end up charging a few dollars to just review and prepare your case.
- Court and filing fees: You need to pay an amount to file a complaint in a federal court.
- Overhead costs: When there’s a case involving many documents, postage costs and copying may account for a few hundred dollars.
In a contingency fee structure, if you lose a case, the concerned attorneys may end up getting nothing. Personal injury victims often fight against insurance companies, which are backed by a team of skilled attorneys. So, if you don’t have the finances to pay attorneys upfront, you can still have the support of veteran legal representatives who are not afraid to take on powerful government and business entities.