What is a contingent fee and how does it benefit me?

Most people don’t have the financial resources to access the legal system. Because individuals are usually unable to afford the costs of litigation, a lawyer is authorized to enter into a contingent fee agreement with clients. The contingent fee system allows everyone, no matter what his or her financial condition, the opportunity to pursue justice, no matter how powerful or wealthy the wrongdoer. Major corporations and insurance companies are fighting to abolish the contingent fee system because they know everyday people are unable to afford litigating a case against them. If lawyers were not permitted to join with the client to share the financial risk of pursuing a case, the victim of wrongdoing would not be able to seek justice.

Simply stated, a contingent fee is a fee that is contingent upon the outcome of the case. If there is no recovery, there is no fee. The lawyer agrees to represent the client and pay for the costs with the client agreeing to pay for the lawyer's work through a percentage of the recovery, whether through a settlement or verdict. The client also agrees to repay the lawyer for the costs advanced. If the case does not result in a recovery for the client, the client is not responsible for paying the lawyer for the time committed to the case.
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