Today, most injury law firms will charge you a contingency fee for their services. This fee requires giving a small percentage of what you receive as compensation for your claim. While this practice has been around for many years, few people understand its structure. For this reason, it would be best to get a few insights into what to expect from this structure.

When Is Contingency Fee Charged?

A contingency fee is a flexible, convenient fee structure suited for clients who are short of cash. It requires that you pay it after winning your settlement and getting compensated. This fee is charged for relatively complicated and costly lawsuits in most cases. That means it will be an excellent choice for cases with no clear liability.

According to Leppler Injury Law Firm, various civil litigation cases can change this fee structure. Professional malpractice cases, sexual harassment, personal injury cases, and employment discrimination are common cases that require a contingency fee. You could also be charged this fee in bankruptcy, class action, and debt collection cases.  

However, a contingency fee might not be acceptable in some cases. For instance, the lawyer should charge a reasonable rate instead of the contingency structure if this case is obvious or clear-cut. This way, it will not appear like the attorney is taking advantage of the individual. In addition, the law prohibits contingency fees in marital cases, as it could encourage divorce.

Why Contingency Fee Structure Is Favorable

The contingency fee structure is an excellent choice for most civil litigation cases. Opting for this structure assures you of various benefits, which have helped spur its popularity. Here is a breakdown of what to expect from this fee structure.

You’ll not need to pay upfront fees when charged on a contingency basis. That means you will not get charged a high legal bill while your case is ongoing. Instead, the lawyer must win the case and get fair compensation before charging you. The percentage charged is often between 20 and 50 percent, depending on the nature of the case.

This structure encourages the lawyer to push for the best results. That is because they can only get paid if you receive your compensation. As such, they will master every move to make sure your rights are protected, and you get a favorable result in the long run. Remember, you do not have to pay them anything if they do not win the case.

Suppose you suffer losses at the end of the case. In this case, you will not bear any costs. That means you do not have to pay your attorney hefty fees when there is no compensation.

What Is a Reasonable Contingency Fee?

Lawyers charge between 20 and 50 percent on the won amount. This variance is thanks to several factors, including the type of the case, its nature, and the skill required. The case’s circumstances could also influence how much you pay in the long run.

Therefore, there is no one-dimensional view of a reasonable contingency fee. Instead, you’ll need to compare the various influencing factors and agree with your attorney. This way, you can avoid significant disappointments or inconveniences in the long run. It would be best to decide on this rate beforehand. In addition, different lawyers could charge differently. It will depend on their experience, skill level, and success rates. That means you must compare what they bring to the table before choosing.

In conclusion, understanding the contingency fee structure helps you make informed decisions when selecting an attorney. This fee structure has proven beneficial for anyone on a tight budget. This approach will be best if you have civil litigation cases, including those mentioned above.