A contingency fee arrangement is the dominant payment model in personal injury law, aligning attorney compensation with client outcomes. Under this structure, the attorney receives an agreed percentage of any settlement, verdict, or award—typically 33-40% of the gross recovery, with higher percentages for cases requiring extensive litigation or appeals. If the case fails to produce compensation, the attorney receives nothing (though clients typically remain responsible for case expenses like filing fees, expert costs, and medical record charges). This model makes legal services accessible to clients who cannot afford hourly fees while incentivizing attorneys to pursue only viable claims. Ethical rules require contingency fee agreements to be in writing and to clearly state the method of fee calculation, expenses recoupment, and whether expenses reduce the attorney's percentage.
← Glossary
Contingency Fee
Payment structure where the attorney receives a percentage of the recovery only if the case wins or settles, with no fee if there's no payout.
Related terms
- Retainer Agreement — The signed contract establishing the attorney-client relationship, outlining fee structures, scope of representation, and mutual obligations.
- Fee Disclosure — Ethical requirement to clearly explain attorney fees, costs, and payment structures to clients before and during representation.