What is a contingency fee agreement

A contingency fee agreement is common in personal injury cases. The client doesn’t pay their lawyer any upfront fees, and the attorney’s fees and costs get subtracted from the settlement or judgment if the case wins. Contingency fee arrangements make quality legal representation available to all. If you don’t get paid, neither does the law firm.

At Lichtenstein Law Group PLC, we believe every person deserves quality legal help regardless of their financial means. We work on a contingency fee basis, so clients don’t have to worry about paying an attorney while they contend with the expensive medical bills and the other financial losses accompanying an unexpected injury. Contact our Roanoke personal injury attorney today.

Do I Have to Pay the Contingency Fee Upfront?

Under a contingency fee arrangement, payment to the lawyer depends on whether they obtain compensation for you. Therefore, you do not have to pay any money upfront. The fee is an agreed-upon percentage of the money the attorney secures for you through a negotiated settlement with an insurance company or a judgment at trial.

What is a Typical Contingency Fee?

Every lawyer takes a slightly different approach to their contingency fee agreements. For example, you might agree to pay a certain percentage if the case settles and a higher amount if the case goes to trial to account for the additional costs of preparing for litigation. You and your attorney will agree upon the contingency fee in advance and sign a written agreement outlining the financial arrangement for their services.

It’s crucial to understand your financial obligations when hiring a lawyer. Don’t be afraid to ask questions. A good lawyer will answer each one thoroughly and patiently.

Will There Be Other Costs Associated With My Case?

A personal injury lawyer may incur additional costs in your case, such as fees for:

• Medical record requests
• Crash report requests
• Expert witnesses
• Court filings
• Investigations
• Travel costs
• Administrative expenses (e.g., postage, courier services, etc.)

Legal costs can range drastically in personal injury cases, depending on the complexity of the case and what it takes to build a compelling argument in your favor. Your attorney can estimate the costs associated with your case during a free consultation.

If You Do Not Win My Case, Am I Required to Pay These Other Costs Back?

In some contingency fee agreements, the client must repay some additional legal costs regardless of whether the attorney secures compensation for them. However, other attorneys may include these costs as part of the fee arrangement, in which case you would pay them only if you receive compensation. When consulting an attorney, you should ask them about their policy on other legal costs.

Are There Any Downsides to a Contingency Fee Agreement?

Contingency fee arrangements have many advantages. For one, it allows a victim without significant financial means to seek justice after a personal injury accident. However, contingency fee agreements do have some shortcomings, such as:

• Loss of compensation – Because contingency fees come out of the total compensation awarded in a case, the amount you take home could be significantly less once attorney’s fees are deducted. In more straightforward cases, it’s even possible the attorney may earn more than they would have if you had paid them hourly.
• Risk to the attorney – Working on a contingency fee basis means your lawyer invests a significant amount of time and money working on your case with no promise of a win or a guaranteed source of income. If they lose the case, they ultimately receive nothing for their work and associated expenses. For that reason, many personal injury attorneys are highly selective in which cases they take, seeking only those with a high likelihood of success. You may have to shop around to find an attorney willing to take your case.
• Limited choice of lawyers – Not all attorneys work on a contingency fee basis, which could limit your options for legal representation. This may be especially true in smaller jurisdictions or rural areas with few lawyers.

Are There Types of Cases Where a Contingency Fee is Not Permitted?

Lawyers cannot work on a contingency fee basis in every case. For example, lawyers in criminal cases cannot charge contingency fees. That’s because criminal cases do not result in compensation but rather in criminal consequences such as jail time, community service, probation, and fines. Most criminal defense attorneys charge an hourly fee or flat rate for their representation. If a person accused of a crime cannot afford a private attorney, the government must provide them with a public defender.

In Virginia, lawyers cannot represent family law and domestic relations cases on a contingency fee basis except in extremely rare circumstances. That means divorce proceedings, child custody cases, and other family-related legal disputes cannot be paid for using a contingency fee agreement. Because these cases often involve sensitive relationships, legal ethics have long discouraged creating a financial incentive for lawyers that may counter society’s goals of preserving family integrity.

Contact a Virginia Personal Injury Lawyer

You don’t need to worry about how to pay for a lawyer while you’re trying to recuperate from a serious injury. At Lichtenstein Law Group PLC, our contingency fee structure allows you to get the legal process underway without adding additional strain to your finances.

You can seek accountability and justice without breaking the bank. Contact Lichtenstein Law Group PLC today for a free consultation with a Virginia personal injury attorney.

John E. Lichtenstein

John E. Lichtenstein is a founding member of Lichtenstein Law Group, PLC, with more than three decades of experience as a trial lawyer. A graduate of the University of Virginia School of Law, John has successfully resolved hundreds of cases on behalf of his clients, including some of the largest jury verdicts and settlements in Virginia history. He has also served his profession, including serving as President of the Virginia Trial Lawyers Association in 2015-2016 and as Chair of the Virginia State Bar Criminal Law Section in 2007-2008.