For any individual dealing with the stress and complexity of a personal injury case, a “no win no fee” promise from an attorney can be very appealing. Here is everything an individual needs to know about no win no fee employment lawyers and contingency fees.
A contingency fee agreement is made between a lawyer and their client, where the lawyer receives a cut of the money that is recovered if the case is successful. This type of fee is thus only used in money-claim cases, such as personal injuries. Additionally, a contingency fee agreement guarantees that the client will not pay for any costs unless their lawyer is successful and wins the case.
How Does a Contingency Fee Function?
These are the basic need-to-know facts about how contingency fees operate:
- A contingency fee is only paid if the lawyer handles a case successfully. The money that the lawyer receives will be cut from the amount of money they successfully recovered for their client. The amount of the contingency fee will be determined between both the client and their lawyer, but commonly a lawyer will receive anywhere from ⅓ to 40% of the reclaimed funds.
- In the circumstance that the case is lost, the client does not have to pay any attorney costs.
- However, regardless of the case being won or lost, the client is generally responsible for the costs of gathering evidence, any court filing fees, and other additional charges.
- The contingent fee arrangement can be modified between the client and the lawyer in any way determined most appropriate for their case.
- A client can attempt to negotiate an agreement with their lawyer a deal where the method of settling would change the amount the lawyer receives. For example, a lawyer would accept a lower percentage of the money if they are able to settle the case quickly and before a lawsuit is filed in court.
What Are the Benefits of a Contingency Fee Agreement?
A contingency is often quite useful for a client seeking immediate legal assistance. Here are a few key benefits that a contingency fee agreement offers for a potential client:
1. A contingency fee agreement offers urgent legal help.
Individuals who have been in an accident and have to prioritize their health rather than their financial situation may find a no win no fee agreement with a lawyer extremely useful. This agreement will waive any immediate fees that the individual would normally have to pay as a client and instead have the attorney promptly begin their work on the case. Thus, faster results on the conclusion of the case and hopefully money being recovered.
2. A no-win-no-fee agreement can apply broadly to many cases.
Although a contingency fee agreement is limited to a money-claim case, it can be useful in endless amounts of common situations. Some circumstances where a potential client could use a contingency fee agreement are:
- personal injury cases (like car accidents),
- premises liability (such as slip and fall accidents),
- violations of employee rights,
- product liability cases,
- and more.
3. A contingency fee will waive any upfront costs that a client would usually pay.
Once a lawyer is hired, there are usual initial hiring and beginning fees that are paid at the beginning of the case. However, a contingency fee agreement waives these costs for the client, since the client only pays if the lawyer is able to win the case. This can be helpful in emergency situations, such as a personal injury accident, where the client may need to prioritize their health before focusing on coming up with a large sum of money.
If you or a loved one would like to know more about no win no fee employment lawyers and how contingency fees work, get your free consultation with one of our Employment Attorneys! We won’t charge you a dime unless you win your case.