How Are Lawyers Paid? What is a Contingent Fee Agreement?
Injured clients often wonder how they will pay lawyers to recover funds they owed after an accident. Injury cases are costly and time-consuming. Almost no one can afford to pay lawyers while they are struggling to pay medical bills and missing work because of an injury. Cases often take months, or sometimes years, to resolve. Because of this, we offer contingent fee agreements for personal injury cases.
A contingent fee agreement means the lawyers are not paid until they recover funds for the client. If the lawyers fail to recover funds, the client does not owe them any legal fees. Contingent fee agreements state that the client will receive a specific portion of the recovery and the lawyer’s fees will be paid by a portion of the recovery. For example, two-thirds (2/3) to the client and one-third (1/3) to the attorney. However, the exact split varies from attorney to attorney, so it is important to read your fee agreement closely and discuss it with the attorney.
A contingent fee agreement is very different from a “Time Based” fee agreement, which requires that the lawyers be paid for each minute they work, whether they win or lose. At HSD Law we offer contingent fee agreements for personal injury cases, and an attorney can discuss the details with you during your free consultation.