What You Need to Know About Contingency Fees

What You Need to Know About Contingency Fees

Before you enlist the help of an attorney in a lawsuit, you may wonder how much hiring an attorney will cost. This is a perfectly reasonable and justifiable question that many people ask. Attorney fees differ from practice to practice, but here at The Lake Law Firm, we offer our services based on a contingency fee agreement. However, if you have never filed a lawsuit before or have never encountered this term, you may now be asking what a contingency fee agreement is. Essentially, a contingency fee means that unless our law firm recovers compensation for you in your lawsuit, you pay nothing. Keep reading to learn more about how contingency fees can benefit you in your potential claim. 

What is a Contingency Fee?

Some individuals may not have the funds necessary to pay an attorney or worry about wasting money on a potentially unsuccessful lawsuit. Contingency fees avoid these concerns because the individual only pays if the case results in financial gain. As opposed to paying an attorney an hourly rate regardless of the outcome, a contingency fee assures you only pay if you win money. Usually, contingency fees apply to certain types of lawsuits like personal injury claims or workers’ compensation claims. 

How Does a Contingency Fee Work?

Instead of paying attorney fees upfront with no guarantee of a settlement or winning verdict, a contingency fee allows you peace of mind. The lawyer’s fee depends on whether or not the lawsuit achieves financial compensation. If you secure money at the end of a case, then the attorney subtracts their fee and any costs incurred during your case from the final amount. Some common costs naturally add up during the lawsuit process. These litigation costs include: 

  • Court filing and processing fees
  • Hiring special or expert witnesses 
  • Discovery costs 
  • Document preparation like medical records or other evidence 

With a contingency fee, the lawyer will take a fraction of the awarded money to pay their fee and reimburse these costs. 

Attorney Compensation in a Contingency Fee

Through a contingency fee agreement, the attorney assumes the financial risk potentially associated with the lawsuit. We understand that many individuals spend money on medical bills and recovery costs or are left unable to work after suffering an injury. Therefore, you may not have the money or want to input additional expenses for a lawsuit. A contingency fee circumvents these worries because you will only forfeit a portion of your financial compensation if your lawsuit is successful. Also, attorneys generally take cases they believe will result in a favorable outcome to ensure payment. Yet, even in the event that the lawsuit does not produce a monetary sum, the claimant still pays nothing, and the attorney does not get paid. The attorney agrees to a specific percentage at the beginning of a case. This portion may range from anywhere between one-third to 40%, but it depends on various factors. To determine the fee, an attorney may consider the risk involved, the difficulty of the case, the type of claim, and so on.

How Much Compensation Can I Recover?

The amount you end up with after the lawsuit depends on several variables. However, a lawsuit may help you recover compensation for: 

  • Past and future medical expenses;
  • Past and future pain and suffering;
  • Loss of wages; and
  • Other economic losses related to your injury.

How The Lake Law Firm Can Help You 

If financial anxieties prevented you from pursuing a lawsuit, please know that a contingency fee can save you from experiencing monetary loss. One of our attorneys can provide you with a free case evaluation and answer any other questions you may have about a contingency fee. Do not hesitate to reach out with any questions about our contingency fee. 

The Lake Law Firm was founded by Edward J. Lake, Esq., a personal injury lawyer for over 25 years. Our dedicated team of attorneys is committed to seeking justice on behalf of those who have suffered injury or death due to the negligence of others. Our experienced attorneys handle many different types of pharmaceutical drugs, medical devices, and other defective products. The lawyers in our firm have helped collect millions of dollars for their clients. The Lake Law Firm will advocate for you and your rights. Please contact us for a free confidential case evaluation at (888) 274-0139.