What does contingency basis mean?

| Aug 26, 2020 | Personal Injury

Someone else was negligent, and you sustained an injury as a result. Now, your expenses are piling up, but you have not been able to work since the accident. The insurance company is trying to lowball you on your settlement, and you know the offer will not cover your losses. But with all these financial difficulties, how can you hire an attorney? 

Those in the legal profession understand this problem, so many offer services on a contingency basis. 

The definition

contingency fee is payment the lawyer receives if you win your case. The attorney does not charge you upfront for legal fees. Usually, the fee is a percentage of the award you receive. 

The agreement

The contingency fee agreement you sign has to include the method for determining the fee and any expenses that will be your responsibility. For example, some agreements require the client to pay court or filing fees. At the end of the case, the attorney must give you a written statement that describes the outcome. 

The benefits

As you can imagine, attorneys who offer to work on a contingency basis likely feel very confident about their ability to win the cases they take. Your risk of loss becomes the attorney’s risk, and that may provide an even stronger incentive to give the case full effort. 

Turning your case over to an attorney also allows you to focus on your recovery.