How Does a Contingency Fee Work?
A contingency fee is an arrangement where your lawyer only earns his fee if a certain event occurs.  In injury cases, this generally means that your lawyer only gets paid if he recovers money on your behalf.  Usually, the fee is a percentage of the amount recovered – often 33 ⅓% of the net sum recovered.
Note that I said <i>net</i> sum recovered.  This means that the expenses and disbursements that the lawyer advanced for the case are deducted “off the top” and repaid back to the lawyer before his fee is calculated.
Always  ask for a complete explanation of how an attorney’s legal fee arrangement works before you agree to any representation.  It should be spelled out in the retainer agreement, but if it’s missing, or you’re unclear about how it works ask for more information.
And unfortunately, it’s always a good idea to double check your attorney’s math at the end of the case.  Make sure that you get everything you’re entitled to.

A contingency fee is an arrangement where your lawyer only earns his fee if a certain event occurs.  In injury cases, this generally means that your lawyer only gets paid if he recovers money on your behalf.  Usually, the fee is a percentage of the amount recovered – often 33 ⅓% of the net sum recovered.

Note that I said net sum recovered.  This means that the expenses and disbursements that the lawyer advanced for the case are deducted “off the top” and repaid back to the lawyer before his fee is calculated.

Always  ask for a complete explanation of how an attorney’s legal fee arrangement works before you agree to any representation.  It should be spelled out in the retainer agreement, but if it’s missing, or you’re unclear about how it works ask for more information.

And unfortunately, it’s always a good idea to double check your attorney’s math at the end of the case.  Make sure that you get everything you’re entitled to.

Additional Resources

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