What does “contingency basis” mean?

| May 18, 2020 | Personal Injury

If you have been hurt in an accident, you may be thinking about pursuing compensation through a personal injury lawsuit. If you have already begun doing your research, you have probably encountered the phrase “contingency basis.”

This blog post will explain what this phrase means and how it applies to your personal injury claim.

“You owe us nothing unless we are successful in recovering compensation for you”

The above phrase is a standard statement on personal injury advertisements. But what does it mean? Will you have to pay your attorneys out of your own pocket? The answer depends on your perspective.

A contingency fee means your lawyer will ask for a percentage of any settlement or award you receive. For example, if you receive $10,000 and your lawyer has a contingency fee of 40 percent, your lawyer will receive $4,000.

What’s the point of such an arrangement?

Contingency agreements give people access to justice.

Personal injury lawsuits are not a sure thing. You could receive nothing for your trouble. With a contingency fee, the attorney takes the financial risk.

It can a lot of time and money for a law firm to pursue an injury claim. Costs can include legal research, legal writing, accident reconstruction, and the hiring of experts. Most people simply do not have the money to pay upfront.

Under a contingency agreement, the law firm is responsible for the costs and hopes to make its money when the case is resolved.

You can focus on healing

The main benefit of a contingency fee arrangement is you do not have to worry about legal expenses. You can focus on moving forward with your life, and your lawyer can focus on demanding accountability from the negligent parties.