What Is a Contingency Fee and How Does It Work?
If you’ve been injured in an accident, you might be hesitant to hire a lawyer because of the potential cost. The good news is that many personal injury lawyers, including Zaber Law, work on a contingency fee basis. This payment structure makes legal help accessible to everyone, regardless of their financial situation.
In this blog, we’ll explain what a contingency fee is, how it works, and why it’s often the best option for clients seeking justice.
What Is a Contingency Fee?
A contingency fee is a payment arrangement where your lawyer only gets paid if you win your case. Instead of paying upfront or by the hour, the lawyer’s fee is a percentage of the settlement or verdict you receive.
If your case isn’t successful, you don’t owe your lawyer any legal fees. This system ensures your lawyer is motivated to work hard on your behalf.
How Does It Work?
- Free Initial Consultation:
Most personal injury lawyers offer a free consultation to discuss your case. During this meeting, they’ll evaluate your claim and explain how the contingency fee works. - Agreement on a Percentage:
Before your lawyer starts working on your case, you’ll sign a written agreement that outlines the contingency fee percentage—usually between 25% and 40%, depending on the complexity of your case. - Lawyer Covers Upfront Costs:
Personal injury cases often involve expenses like filing fees, medical record requests, and expert witness fees. Your lawyer typically pays these costs upfront and gets reimbursed only if your case is successful. - Payment After You Win:
If you win your case, the lawyer’s fee is deducted from the settlement or court award. For example, if you settle for $100,000 and the agreed-upon fee is 33%, your lawyer would receive $33,000, and you’d get the remaining $67,000 (minus any case expenses).
Why Choose a Contingency Fee Arrangement?
1. No Upfront Costs
You don’t need to worry about paying out-of-pocket to hire a lawyer, making legal representation accessible to everyone.
2. Reduced Financial Risk
Since you only pay if you win, there’s no risk of losing money on legal fees if your case isn’t successful.
3. Motivated Representation
A lawyer working on a contingency fee is invested in your success. They don’t get paid unless you do, so they’ll fight hard to get the best possible outcome.
What’s Covered by the Contingency Fee?
The contingency fee usually covers:
- Legal research and preparation.
- Negotiating with insurance companies.
- Filing your lawsuit and attending court hearings.
- Gathering evidence and interviewing witnesses.
Additional expenses, like medical record fees or expert witness costs, may be deducted from your settlement, but these will be clearly outlined in your agreement.
Example of a Contingency Fee in Action
Let’s say you were injured in a car accident, and your lawyer helps you secure a $50,000 settlement.
- The agreed contingency fee is 33%.
- Your lawyer receives $16,500.
- You get $33,500 (minus any case-related expenses).
This arrangement allows you to pursue justice without worrying about upfront costs.
Is a Contingency Fee Right for You?
A contingency fee arrangement is ideal for personal injury cases where financial barriers might otherwise prevent you from seeking legal help. It aligns your lawyer’s interests with yours, giving you confidence they’ll work hard to achieve a favorable outcome.
Let Zaber Law Help You
At Zaber Law, we believe everyone deserves access to justice, regardless of their financial situation. Our contingency fee arrangement ensures you can focus on your recovery while we handle the legal details.
📞 Contact us today to schedule your free consultation.
You have nothing to lose—and everything to gain. Let us help you fight for the compensation you deserve!
