If you need legal help to recover costs associated with a personal injury, a contingency agreement is likely right for you. Contingency agreements offer a way to hire legal help free of upfront charges. When you or a loved one are injured, taking time to heal and recuperate is imperative. It can be daunting to consider legal fees on top of the medical expenses you have likely already incurred. That is why many attorneys you hire will be willing to work with you on a contingent basis if you have a credible case.
What Is a Contingency Agreement?
A contingency agreement is a contract that states the lawyer will receive payment only when an event occurs. In most cases, that event is winning a settlement. The contingency agreement centers on a contingency fee, which is the percent of the settlement recovered that constitutes the lawyer’s fee for legal services.
What Is a Typical Contingency Fee?
In the state of New York, most attorneys charge the maximum contingency fee of 33.33% of recovery. This is the highest percentage legally allowed for a contingency fee. Attorneys typically base agreements on the highest percentage because most settlements in the U.S. are under $50,000. Therefore, contracting high is a way to ensure adequate reimbursement in the case of a low settlement. However, many attorneys are willing to accept a lower contingency fee, or a fee based on a sliding scale. For example, the attorney may want a guarantee of one-third of the first $10,000 settled, but would agree to 15% or 20% of settlements over $50,000. Settlements are widely varying and contingency fees may also vary widely.
Will an Attorney Always Accept a Contingent Case?
No – an attorney will likely turn away a contingent case if he or she does not believe that he or she can win the case. Cases the attorney thinks are unwinnable are a waste of valuable time the attorney could devote to helping someone else in need. Additionally, a lawyer may turn down a contingent case because he or she does not believe that the defendant can pay (via wealth, insurance, or investments) even if his or her client wins the case. However, whenever possible, a lawyer will accept a contingency agreement to help an individual in need that has a valid case. In New York, most cases do settle with financial recovery. If a contingent case is the exception, and does not win a financial settlement, the lawyer is not paid.
Will I Owe My Attorney Anything If I Lose My Case?
If you have entered a legally binding contingency agreement, you will not owe the attorney for representation. However, certain fees and disbursements are reimbursed to the attorney, unless otherwise specified. Witness training or court-ordered doctors are two examples of fees your lawyer may pay upfront, and would be owed if the trial is lost. It is important to discuss these fees and stipulations within the contingency agreement. If you win the case, the fees are reimbursed to the attorney. These expenses range from insignificant to thousands of dollars. It is important to have a clear understanding of clauses on fees and expenses.
Do You Need Legal Help on a Contingent Basis?
If you need legal help that you cannot afford out of pocket, you are not alone. Start by contacting an attorney to assess the merits of your case and discover your options. If you have a case, your attorney will likely be willing to receive compensation when you recover.