Historically, the legal system was only genuinely accessible to wealthy people who could afford court costs. However, in contemporary times, contingency fee agreements have facilitated legal recourse for those injured due to another’s negligence. This arrangement eliminates the need for claimants to furnish an upfront payment to retain legal representation. Contingency fee agreements ensure injured parties can protect their right to compensation despite financial hardship. Please continue reading to learn the potential benefits of a contingency fee agreement and how our knowledgeable Essex County Personal Injury Attorneys can help you get the justice you deserve.
What is a Contingency Fee Agreement?
A contingency fee is a type of payment that an attorney receives if you obtain compensation for the harm you’ve endured. Instead of charging an hourly rate for their services, the attorney will receive a percentage of any monetary recovery they help you recover from your case. Understanding that this arrangement is contingent is crucial, meaning the attorney will only get paid if you win. You don’t owe any attorney fees if you don’t win your case. Essentially, their payment is contingent on you receiving a monetary recovery.
Generally, you will sign a contingency fee agreement at the beginning of the case. This will stipulate the percentage of the settlement that the attorney will get paid at the end of your case if you win. You will not have to pay attorney fees before or during the case. This can be highly beneficial for those facing financial hardships. At the end of your claim, your attorney will be paid out of the proceeds of your recovery. Every personal injury case is unique. Therefore, contingency fees can vary from attorney to attorney and case to case. In most cases, the average cost is between 30% -60%, depending on the case’s complexity. It’s important to understand that when more risk is involved in taking a case, the attorney can charge a higher contingency fee percentage.
What Are the Advantages?
It’s crucial to understand that not all legal cases use contingency fee agreements. However, when available, these arrangements offer numerous advantages. The most significant benefit is that you don’t have to pay anything upfront. Following an accident, medical bills may begin to pile up, and your injuries may prevent you from being able to work. As such, not having to pay your legal bills will enable you to focus on your recovery. This arrangement will also incentivize your attorney to win your case, as they only get paid if you receive compensation. Furthermore, if you lose your case, you won’t have to pay your attorney fees. It’s important to note you may still be liable for administrative expenses.
As you can see, there are various benefits to a contingency fee agreement. Before agreeing to any contingency fee agreement, review the contract and clarify with the attorney what expenses you must pay, even if you lose your case, so you’re not blindsided at the end of your claim. For more information about what a contingency fee agreement entails, please don’t hesitate to contact an adept attorney from the Law Offices of Christopher T. Howell, Esq. Allow our firm to represent your interests effectively.
