How Contingency Fees Work
Posted by Bill Rogers | Under Reference & Education Thursday Feb 11, 2010It has come to my attention that there is a rampant public misconception that all attorneys are very expensive, and “a good attorney” costs even more. It is alarming how many people don’t think they can hire an attorney due to fear of high legal fees. I hear these concerns time and again, “Only the wealthy win lawsuits.” “It takes money to hire an attorney.” Unfortunately, these misconceptions are continually perpetuated throughout our society.
What a Contingency Fee Actually Is
A contingency fee is when legal services are provided and a fee is paid upon a favorable outcome of the case. The most common way this is done is by paying a percentage of the client’s recovery to the attorney. This type of fee is fairly standard with personal injury cases. However, in most jurisdictions contingency fees are not allowed for family and criminal cases.
What Are The Benefits Of Contingency Arrangements?
The biggest benefit is that a contingency fee allows access to top notch lawyers for individuals that normally could not afford the high costs of an hourly attorney or litigation. A contingency arrangement also encourages a lawyer to work hard on the case since he or she only receives compensation with a successful outcome.
Some Questions And Concerns With Contingency Fees
Utilizing legal representation with a contingency fee does not guarantee a successful resolution to your issue. Since lawyers only receive compensation upon a successful resolution, they take cases that they feel have the best merit and are most likely to succeed. It is sometimes difficult to determine the viability of a case before doing initial research, and even that can be risky and expensive. As a result, there are cases that are sometimes turned down before the investigation is even underway.
Contingency Fees & The Actual Cost of Litigating
It is also important to distinguish between contingency attorney fees and the costs of litigation. While contingency fees protect the client from incurring paying high fees to the attorney in the event of an unsuccessful outcome, many jurisdictions require that the client remain responsible for the costs of litigation. It is essential that fee arrangement is discussed at the very beginning of an attorney-client relationship. Don’t be afraid to ask your attorney both how their fees and the costs of litigation will be paid.
Getting injured is a troubling and difficult experience. If you suffer injury it is important that you be made aware of your rights. NJ personal injury law firms can protect your rights and help you receive compensation for the the loss you have suffered. Talk to a New Jersey injury lawyer today.
