What does Contingency Fee mean?
Lawyers use various fee agreement methods for different types of legal claims. Personal injury cases frequently use a contingency payment system which allows the claimant to avoid paying a retainer fee to hire a lawyer but allows payment to the lawyer to be made after the successful completion of an injury case.
For instance, if you have been injured due to the negligence of another person and you wish to file a personal injury claim you can hire a lawyer without any upfront payment with the understanding that the lawyer will be paid a percentage of your award after you win your case. The amount you will pay if you win can vary based on what type of case you have filed.
There are drawbacks for this legal fee agreement. Although you will not have to pay any money upfront, if you do not have a case the attorney believes they can win they may refuse to take your case. Additionally, contingency fees can be very high for some types of injury cases, and if you are successful, the percentage of your award you will be required to pay if you win can be very high.