A contingency fee agreement is considered a payment arrangement where an injured plaintiff could seek legal representation even without money to pay the lawyer at the beginning of the case. Under such an agreement, the client doesn’t have to pay the lawyer up front. Instead, he or she can pay a percentage of the award once they win the case. This agreement will define the terms and conditions of the arrangement such as how much the attorney should be paid, etc. The rules of contingency fee agreement can differ depending on the state you live. This article provides information on what does a contingency fee mean in regards to lawyers.
The basic concept in this arrangement is the client doesn’t have to pay anything up front to find a lawyer to represent his or her case. On the other hand, the lawyer doesn’t get anything unless he/she wins the case for the client. Once the case is won, the lawyer gets a percentage of the compensation as agreed before. A lawyer would be hesitant to work on cases where there are limits of how much the plaintiff can recover as damage. Although most states in the country permit contingency fee agreements, some bar associations have become critical of such arrangements. Hence, some states have limits on the implementation of contingency fee agreements.
Once a contingency fee agreement is reached, the lawyer has to pay the expenses of the lawsuit. Once he/she wins the case, the agreed percentage will be distributed to him/her. There are some agreements that offer expenses and a percentage of the award. That’s why you need to be aware of the clauses included in the contingency fee agreement. There are several types of cases where lawyers work on a contingency basis such as military divorce, personal injury, wrongful death and class action employment lawsuits.
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