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Drawbacks of a Contingency Fee Arrangement First, a contingency fee arrangement will sometimes result in an attorney getting paid more money than if you paid the attorney by the hour. This is especially true in relatively clear-cut cases that might only require a few phones calls and letters to settle.
When a lawyer works for a contingency fee, it means the lawyer gets paid only if their client recovers damages. There is no upfront charge for the lawyer's services. In fact, you never make an out-of-pocket payment. The contingency fee simply comes out of the compensation the attorney recovers on your behalf.
While the percentage of the fee varies by lawyer, typically contingency fees are 33 2153 percent of the case if a lawsuit is not filed and 40% if a lawsuit is filed.
A typical contingency fee percentage is anywhere from 30 to 40% of your recovery. Your contingency fee agreement will set out the exact percentage. These percentages are often staggered so that your lawyer will get a higher percentage if the case goes to trial which requires more time and work for their law firm.
Disadvantages. The main problem with a contingency fee agreement is that it could cost the plaintiff more than standard hourly rates for a lawyer if the case settles quickly. A standard contingency fee can range between 30-40% of the final award.