What Is a Contingency Fee?
A contingency fee is a legal fee paid from a client’s recovery in a qualifying personal injury matter. The lawyer generally receives payment only if the case produces a settlement or award. The written agreement explains the fee basis, case expenses, and how those amounts are handled.
Quick Facts About Contingency Fee
Category
Legal fee arrangement
Used for
Personal injury claims
Common confusion
Fees and case expenses are separate terms
Also called
Contingent Fee, Contingency-Based Fee
Often discussed with
Personal injury attorney
Key Takeaways About Contingency Fee
- Payment depends on a recovery in the case.
- The agreement controls fees and case expenses.
- A contingency fee is not the same as free legal services.
How Contingency Fee Works
A contingency fee ties attorney payment to the result of a personal injury claim. The written agreement states how the fee is calculated and identifies expenses that may arise during the case. The agreement may also explain whether expenses are deducted before or after the attorney fee is calculated.
Related glossary terms: Settlement Demand, Damages, Medical Lien.
A client usually does not pay the attorney’s fee as the legal work occurs. If the claim resolves through settlement or an award, the fee and covered expenses are handled from the recovery under the agreement. Settlement describes an agreed resolution, while an award may follow a court or jury decision. The arrangement does not remove the need to review medical records, insurance information, liability evidence, and settlement terms.
From the Atlanta Auto Law team
When we discuss a contingency fee, we explain the fee agreement in plain language before work begins. Our team separates the attorney fee from case expenses and reviews how each item affects the client’s recovery. We also check that the agreement matches the claim and the services involved.
Contingency Fee in Practice: A Real-World Example
After a driver suffers bodily injuries in a crash, Atlanta Auto Law may handle the personal injury claim under a contingency fee agreement. If the claim produces a recovery, the agreement governs the attorney fee and eligible case expenses taken from that recovery.
Related Services
Related Terms
Settlement Demand
A settlement demand is a formal request for an insurance company or opposing party to resolve…
Damages
Damages are the losses a person may seek to recover after another party causes a personal…
Medical Lien
Medical Lien is a claim or payment arrangement that allows a healthcare provider to seek payment…
Subrogation
Subrogation is a legal process that allows an insurer or another payer to seek repayment from…
Atlanta Auto Law
Have Questions About Contingency Fee?
Contact Atlanta Auto Law for practical guidance on Contingency Fee and related personal injury attorney work in Druid Hills.