A no-win, no-fee lawyer is basically a lawyer who agrees to be hired by a client on a contingency fee basis. In a contingency fee arrangement, the lawyer is paid a percentage of the total amount of money that they win for their client. This amount might be the result of settlement negotiations and a settlement agreement between their client and the entity they sue for damages. Or it might be the result of an award of damages after a trial.
The main attraction of hiring a lawyer on a contingency fee basis is the fact that a client does not have to pay their contingency lawyer in Texas unless the lawyer wins money for their client. If the lawyer does win a money settlement or judgment for their client, the lawyer then takes a percentage of the total amount won.
If the attorney is not successful, the costs of prosecuting the case would still have to be paid, but the lawyer would not earn any fee to compensate them for the time and effort they devoted to the case.
Whether the costs of prosecuting the case would be borne by the attorney or the client would be a matter on which they would need to agree.
The Texas Disciplinary Rules of Professional Conduct, which are rules that licensed attorneys must obey, impose certain limits.
Furthermore, Texas law places limits on contingency fees. While Texas law does not impose a limit on contingency fees in all kinds of cases, it does impose limits in some, such as medical malpractice cases and cases that seek damages from a government entity. The most specific limits are imposed on lawyers in medical malpractice cases.
Courts also evaluate contingency fees. They look to see if a fee reflects such things as the complexity and challenge that a case presents for a lawyer, the amount of a lawyer’s time that it consumes, and what fees are customary in the community for the same type of legal services.
Lawyer’s fees in cases against governments and government agencies are also restricted by Texas law. Lawyers who represent clients in lawsuits against state or local governments are required to limit their fees by the Texas Tort Claims Act. In addition, the Texas Government Code bans contingency fees in certain specified public interest cases. Contingency fees in some of these types of care are allowed only if they are explicitly authorized by law.
A contingency fee agreement between a lawyer and a client must be in writing in Texas, and the agreement must specify the expenses that will be charged in addition to the fee percentage.
The contract should also specify whether the expenses are to be deducted from the amount of money the lawyer wins for the client or whether a client would pay for them separately. If the reimbursement for expenses is to be subtracted from the amount recovered, the agreement should also state whether it would be subtracted before or after the contingent fee percentage is applied to calculate the lawyer’s share of the recovery.
Finally, any contingent fee contract must expressly state that if there is no recovery the client owes the attorney no money.
How Do I Find a Lawyer Who Will Work On Contingency?
LegalMatch.com can connect an individual to a Texas lawyer who works on a contingency fee basis. The individual can meet with the lawyer and discuss their fee. An individual who wishes to hire a lawyer should always question the lawyer about how they will charge the individual and how they expect to be paid. As noted above, any contingency fee agreement should be in writing and signed by the client and the lawyer.
Other ways to locate a lawyer who will work on contingency is to ask friends, relatives, and colleagues for recommendations of lawyers with whom they might have worked successfully. They could also seek legal advice and referrals from attorneys who do not work on a contingency fee basis.
The State Bar of Texas has a Lawyer Referral and Information Service that offers help in finding a lawyer to the citizens of Texas. It promises help in finding a lawyer or other resources that can aid a person in responding to their legal problems or needs in an affordable manner.
Cities and counties in Texas also have bar associations that offer lawyer referral services. For example, the city of Dallas has a bar association, the Dallas Bar Association, and it also offers the citizens of Dallas a lawyer referral service, to which people can turn for referrals to lawyers.
What Is a Contingency Fee for a Lawyer in Texas?
Generally, lawyers who represent clients in personal injury cases work on a contingency fee basis. They would charge a fee that is standard in the community in which they practice.
If a case is settled before a lawsuit is filed, a personal injury lawyer would charge a fee of 33.3%. If a lawsuit must be filed, the percentage would increase to 40%. If there must be a trial, the percentage may increase to 44%.
An individual should understand exactly what their contingency fee is, and, again, by law in Texas, they should get the agreement in writing.
How Is the Percentage Determined?
The percentage often depends on how complex the case is, how likely it is to succeed, and the stage at which the case is resolved. If a settlement is reached before any formal litigation is begun, this may justify lower fees, whereas cases that go to trial often warrant higher percentages due to the added time and resources required to stage a trial.
As noted above, there are state laws and regulations in Texas that may apply to limit fees in certain cases, e.g., medical malpractice cases. A lawyer practicing in Texas should obey these laws and regulations.
How Can I Negotiate a Contingency Fee Agreement With a Lawyer?
A prospective client may negotiate a contingency fee agreement with a lawyer. They should know that the percentage a lawyer charges sometimes depends on the complexity or difficulty of a case, the likelihood that the case is going to be successful, and the phase of the litigation process in which the case comes to an end.
As noted above, if a settlement is reached before a lawsuit has to be filed, the percentage would be lower than it would be if there must be a trial in the case. This is because a trial consumes a lot of the lawyer’s time and effort.
As noted above, again, Texas law and regulations impose limits on contingency fees in some cases, e.g., medical malpractice, and any fee agreement should respect those limits. In addition, in certain specified public interest cases, contingency fee arrangements are not permitted by Texas law.
Find My Lawyer Now!
What Types of Lawyers Work on Contingency Fees?
It is mostly in personal injury cases that lawyers accept contingency fee arrangements.
When Are Contingency Fees Not Allowed?
Lawyer’s fees in cases against governments and government agencies are restricted, as noted above. Under the Texas Tort Claims Act, attorneys representing clients in lawsuits against state or local governments must comply with statutory fee limits. In addition, the Texas Government Code bans contingency fees in certain specified public interest cases and allows them only in cases for which they are explicitly authorized by law.
Will I Get Monthly Bills From a Lawyer Paid on Contingency?
As noted above, a lawyer who is being paid a contingency fee might charge a client for the expenses incurred in prosecuting a lawsuit while the lawsuit is in progress. For example, an individual who initiates a lawsuit by filing a complaint must pay a filing fee to the court in which they file it. Their lawyer may incur expenses in trying to identify and obtain items of evidence that they need to prove their client’s case during the discovery phase of the process.
A contingency lawyer may have to make use of expert witnesses who would have to be paid for their services whether the client’s case is won or not. So this is an expense that is incurred in order to prosecute the case that must be paid before the case comes to an end.
The lawyer might ask the client to cover these fees as the case progresses. Other arrangements are possible. For example, the fee agreement might provide that costs are to be subtracted from the recovery when it is received. Then, the agreement must state whether costs would be subtracted before the attorney’s percentage is applied or after the attorney’s percentage is applied.
What Are the Pros and Cons of Contingency Fee Agreements?
The main advantage of a contingency fee agreement is the fact that the client does not have to pay the attorney unless the attorney recovers an award of money damages for the client. This gives an attorney an added incentive to win an award for their client.
Of course, the disadvantage is that the attorney’s fee reduces the amount of the money damages that a client wins. This amount is supposed to compensate the client for the losses they suffer because of their injury. Of course, the attorney attempts to recover an amount that is still adequate to compensate their client even after the attorney’s fee is deducted.
However, in some cases, a client might end up with less in damages than they need to be fully compensated for their losses.
Should I Hire a Lawyer on a Contingency Fee Basis?
If you have been harmed by the wrongful act of someone else, whether it was negligent or intentional, you want to consult a contingency lawyer in Texas. LegalMatch.com can connect you to a lawyer who can fully explain their contingency fee arrangement and represent your interests in your effort to recover the compensation you deserve.
