Contingency Lawyers
Contingency lawyers work on a contingency “fee structure.” This means that the lawyer retains a percentage of net recovery, i.e., 30% of $300,000. The percentage retained is generally 5-50%. If the plaintiff loses, then she pays nothing.
Contingency lawyers may also create different layers for their fees. For example, a lawyer can charge 20-25% if the case settles, meaning that the lawyer did not have to work so hard. Then they might charge 30-35% if the case is won at trial, because the lawyer had to put in more hours. Finally, fees can be as high as 40-45% if the case is appealed, in which case, the lawyer will have to work hard to see the case through to a final decision.
Contingency fee structures have not been accepted traditionally in Great Britain and Canada. This is because lawyers in their system should be disinterested in the outcome of the case. In America, our adversarial system supports lawyers being motivated to fight for the client’s interests.
Contingency lawyers are well-known for practicing personal injury law. This is because the plaintiffs are just average people who have been injured, unable to afford an attorney. In addition, the result of the case is usually unknown.
If the case is an obvious victory, however, a contingency lawyer should estimate how many hours it will take to prepare for, and then assign a reasonable hourly rate. In addition, the Code of Professional Ethics does not allow a lawyer to accept a contingency fee when practicing family law or criminal law, because doing so would tend to condone divorce and crime.
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Last Modified: 08-26-2008 04:39 PM PDT
