What is a contingency fee agreement?
A contingency fee agreement is the typical fee agreement in a personal injury case. This arrangement means a lawyer is not paid unless you make a monetary recovery. It also incentivizes the lawyer to build up the case as much as possible. A few of the advantages of a contingency fee are as follows:
- You have little to no upfront expenses and personal injury cases can be potentially very expensive cases;
- You do not receive a legal bill for calling/contacting your lawyer which helps foster more communication;
- You can focus on getting healthy and allow your lawyer to build up your case; and
- The lawyer’s recovery is taxed but the client’s recovery for pain and suffering is tax free.
The American Bar Association has explained the pros and cons of a contingency fee agreement in the following link.