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A contingent fee agreement is a legal agreement that allows you to hire a lawyer for your case without having to pay any out-of-pocket upfront fees unlike a retainer fee. The lawyer getting payment is contingent on you winning your case. If you do not win your case, you don't have to pay your contingency lawyer.
The term ?contingency fee? refers to a type of fee arrangement in a case in which an attorney or firm agrees that the payment of legal fees will be contingent upon the successful outcome of the case.
The average hourly rate for Iowa lawyers is $202 and the average for non-lawyers is $130. For comparison: District of Columbia has the highest law firm hourly rate at $365, while West Virginia has the lowest law firm hourly rate at $160.
That is, generally in a contingency fee agreement, the lawyer only receives compensation if the lawyer has successfully represented the client. Further, the amount the lawyer receives is contingent upon the result the lawyer obtains and often on the phase of litigation in which the dispute settles.
The term ?contingency? means that you will not be charged any money upfront to hire an attorney for your case. You will also not be charged any attorney fees during the lawsuit process. The attorney you hire will only be paid if you get a settlement or win at trial.
Contingency fees mean you will pay the lawyer a certain percentage of the money you receive if you win the case or settle the matter out of court. If you lose your case, the lawyer does not receive any payment from you.
That said, the most common lawyer contingency fee average ends up being 33%, or ? of the total earnings of a case, but can go up to 40% (in some jurisdictions) as the complexity and risk involved in taking the case increases.
Contingency fees are commonly used in personal injury cases, medical malpractice, workers' compensation, and other cases where a monetary settlement or judgment is expected.