A contingency fee agreement is a payment arrangement between the plaintiff and the lawyer, allowing the person who has been injured to obtain legal representation without having the funds to pay the lawyer upfront.
A contingency fee agreement is a payment arrangement between the plaintiff and the lawyer, allowing the person who has been injured to obtain legal representation without having the funds to pay the lawyer upfront. The client agrees to pay the lawyer a percentage of the award should he or she win the case. The contingency fee agreement dictates all circumstances of payment and how much the client will pay the lawyer. (Learn more about us – Why Hire The Hoffmann Law Firm, L.L.C.?)
Contingency Fee Basics
The basic idea behind a contingency fee agreement is that as a client you pay a minimum of upfront expenses and you do not pay any legal fees until you win the case. After you win your case, the lawyer receives a percentage of the settlement as the fee. If you lose the case, you do not owe any legal fees to the lawyer. Contingency fee agreements are normally used for cases wherein the client is seeking monetary compensation for injuries. Depending on the type of injuries, the nature of the case, and the damages sought, a lawyer may not accept a contingency fee agreement. In cases of certain legal claims, there is a limit on how much a person can recover and a lawyer may not be willing to work on a contingency fee basis.
Most states allow contingency fee agreements; however, some bar organizations have placed limits on their use. Those who favor contingency fee agreements are of the view that contingency fee agreements motivate the lawyer to obtain the best possible settlement or award for the client and provide clients a way to seek legal representation even they cannot afford to pay upfront fees.
How a Contingency Fee Agreement Works
Once a contingency fee agreement is signed, the lawyer will bear the expenses of the lawsuit, including filing fees, payment of depositions, and medical records. If the judgement is in your favor, the contingency fee agreement will determine how the funds are dispersed. If your case goes to trial, then it is likely that the contingency fee agreement will provide for a higher percentage for the lawyer, because it will take more of the lawyer’s effort. If the case is resolved through mediation, the agreement may provide for a smaller percentage. In some cases, the lawyer may first recoup expenses and then charge a percentage of the funds as his or her fee.
St. Louis Injury Lawyer
If you have been injured by a reckless driver, contact a St. Louis injury lawyer from The Hoffmann Law Firm, L.L.C. at (314) 361-4242.