If you win your case, you will usually be the one to pay these costs. However, if your lawyer takes the percentage of contingency fees before or after these costs are paid, it can make a significant difference in the amount you and your lawyer ultimately receive. In a contingency fee agreement, the client does not pay fees until his lawyer obtains a favorable settlement or judgment. The fee in a contingency agreement is set as a percentage of the agreement or judgment obtained in a particular case.
Alternatives to a contingency fee are a fixed-rate or hourly agreement. Contingency fee arrangements are advantageous for clients who do not have sufficient funds to pay an attorney by the hour. They are also used by customers who don't want to risk paying a lawsuit and potentially losing. A contingency fee agreement is a shared risk between the lawyer and the client because if the lawyer is unsuccessful, the lawyer is not paid.
Compare that to an hourly fee agreement where you pay the lawyer for your time working on your case, regardless of whether you win, lose or tie. A contingency fee is just what it seems. It is a fee that is paid subject to the allocation of money. If the lawyer does not get money in the case, the client does not owe the attorney's fees.
If monetary compensation is obtained, either through a settlement or a verdict, the lawyer receives a percentage of the total recovery. After entering into a contingency fee agreement, your lawyer will cover the costs of building your claim, such as filing fees with the court, expert witness statements, and payment for copies of medical records or reports. Finally, even if the lawyer and client agree on a contingency contract, the client must be aware that if the case is lost and the court awards the costs of the winning party against the losing party, the client, not the lawyer, may be liable for those costs. If the costs of the case come from attorney's fees, expensive cases would pay the lawyer little or no fee for his or her time.
Another advantage of contingency fee agreements is that clients can rest assured that most lawyers won't take a case they don't think they can win. The obvious advantage of contingency fees is that they allow a client with limited financial resources to access the services of a lawyer. In such situations, it may be prudent for the lawyer to charge less contingency fees as your risk of loss is reduced. Your lawyer will build your case and represent you based on the agreement you enter into for future payments based on the amount of your settlement or verdict.
For example, the court requires filing fees, you must pay court reporters and cameramen when you make statements, and issuing subpoenas and receiving documents from financial and medical organizations costs money. Contingency fee agreements provide a means for people who cannot afford an attorney to access the civil justice system and seek fair compensation for injuries and damages. Although a request to modify a fee does not require an attorney to institute a flexible or negotiable fee, clients can evaluate the fee schedule as the case progresses and determine if a modified contingency fee is desirable. In many situations, a contingency fee agreement works as a motivation for lawyers to get the best possible outcome for their clients simply because their clients' success is directly related to their success.
Contingency fee agreements allow clients to use the services of a lawyer and pay fees later, after settlement money or proceeds from the trial allow payment. .