Lawyers
What is Contingency Fee?
Definition
A contingency fee is a legal fee arrangement in which the attorney is paid only if the client wins or settles the case. The fee is a pre-agreed percentage — typically 33% to 40% — of the recovery, plus reimbursement of case expenses.
Real-World Example
An injured worker signs a 33% contingency retainer. The case settles for $180,000; the attorney's fee is $60,000, case expenses total $4,200, and the client nets $115,800.
Why It Matters
Contingency fees make justice accessible to people who cannot pay hourly rates upfront. They also align the attorney's incentives with the client's outcome.
Frequently Asked Questions
Do I owe anything if I lose?
Attorney fees are $0 in a pure contingency case. You may still owe case expenses depending on the retainer wording.