What Is A Contingency Fee Agreement?

Last updated on: January 30, 2023

After being injured in an accident, you may be experiencing significant physical injuries, emotional distress, or property damage. These damages can become very expensive, very quickly. After suffering through these types of events, the last thing you should have to worry about is being able to afford high-quality legal representation.

At Zinda Law Group, our attorneys work on a contingency fee basis. This means that you do not pay us anything unless we are successful in winning your case. Call Zinda Law Group at (800) 863 5312 for a free consultation.

The Basics Of Contingency Fees

When speaking with a personal injury attorney, you might hear them mention a contingency fee agreement. If you’re curious as to what a contingency fee agreement is, it’s when a lawyer agrees to work on your case for free in exchange for a fixed percentage of any money recovered on your behalf at the conclusion of your case.

Very few people anticipate requiring a lawyer, so they don’t have money set aside to pay legal fees when the need arises. Whether or not you should use a contingency fee depends on your ability to handle the financial burden of pay-as-you-go legal services. Insurance claims and lawsuits can sometimes take years to resolve; very few people have the financial flexibility to cover attorney’s fees for such an extended period.

For any other questions relating to contingency fees, contact Zinda Law Group today.

Contingency Fee Variations

In the most common type of contingency fee agreement, the client will pay his or her attorney a percentage of the total settlement or verdict.

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There are variations of the contingency fee agreement, however. For instance, an attorney may agree to take a smaller percentage of the final settlement but may also charge an hourly rate. For this reason, it is important to always understand what you are agreeing to pay before hiring an attorney.

At Zinda Law Group, you do not pay us anything unless we win your case, so contact our team today to discuss your case.  

What Are The Advantages Of A Contingency Fee Agreement?

Contingency fees are a great way for those who have been injured by a negligent third-party to obtain excellent legal representation without having to pay attorney fees. Contingency fees are typically used in personal injury, mass tort, wrongful death, and product liability cases.

Contingency fees are very different from hourly fees. A lawyer who charges an hourly fee usually requires a retainer up front to cover the initial fees and expenses. After the retainer is exhausted, the client is then sent a bill every month detailing the amount of time the lawyer and his or her staff spent on the case and any expenses. The client is then expected to pay that bill within 30 days.

When a contingency fee is used, the client pays absolutely nothing until the lawyer makes a financial recovery on the client’s behalf. Once a recovery is made, the lawyer’s fee is typically a flat percentage off the top, allowing the client to focus on their own recovery and not having to worry about paying their attorney throughout the case.

What Are The Disadvantages Of A Contingency Fee Agreement?

Although contingency fee agreements have many advantages, you may be wondering if there are any disadvantages.

In a contingency fee agreement, the attorney will be paid a percentage of your overall recovery amount. This means that the more money the attorney wins for you, the more money you will be obligated to pay to the attorney. 

The potential downside to a contingency fee agreement is that you may end up paying the attorney more than you would have under a different form of payment, such as an hourly rate. This is not true in every case, however, and will depend on the length of the legal process and complexity of your unique claim.

If you have any questions regarding the advantages or disadvantages of a contingency fee agreement, contact Zinda Law Group today.

Frequently Asked Questions

You may still have some questions regarding contingency fee agreements, especially if you have never heard of them before. Zinda Law Group personal injury attorneys are here to answer any questions you may have regarding contingency fees, including:

What Percentage Do Most Lawyers Take In A Contingency Fee?

Contingency fee rates are fairly standard from firm to firm. If your case is in pre-litigation, the general contingency fee is 33 percent of the total recovery. Once a lawsuit has been filed, the fee increases to 40 percent. In the rare event an appeal is required, the fee becomes 45 percent. 

Initially, these percentages may seem high. However, it is important to keep in mind that insurance claims and lawsuits can often take a year or longer to resolve. If the client is paying an hourly rate for that period, the total attorney’s fees would often be much higher than 33 to 45 percent of the total recovery.

Need Help? Contact Zinda Law Group Today

At Zinda Law Group, we believe that you should not have to worry about expensive legal fees on top of your medical concerns. That is why we work on a contingency fee basis. Our accident attorneys are here 24/7 to help you navigate the entire legal process and to help build you the strongest case possible, while you focus on your recovery.

If you have been injured in an accident, call a Zinda Law Group personal injury attorney today at (800) 863 5312 to set up your free initial consultation. As we work on a contingency fee basis, you do not have to worry about paying us anything unless we are able to win you compensation in your case. That is our “No Win, No Fee Guarantee.”

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