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Contingency Fees: This is a favorite among personal injury and medical malpractice attorneys.
In a contingent fee arrangement, the lawyer agrees to accept a fixed percentage (often one-third to 40 percent) of the recovery, which is the amount finally paid to the client. If you win the case, the lawyer's fee comes out of the money awarded to you.
However, Model Rule 1.5(d) prohibits contingency fee agreements for domestic relations matters?such as divorce cases?and for the representation of a defendant in a criminal case. Most states, including California and New York, have adopted such prohibitions on contingent fees.
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.
Contingency Fee. 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.
In contrast to a fixed hourly fee, in a contingent fee arrangement lawyers receive a percentage of the monetary amount that their client receives when they win or settle the case.
A contingency fee provides for compensation to the attorney for his or her legal services based on a percentage of the recovery. This type of arrangement is typically used for personal injury matters (negligence actions, such as car or slip-and-fall accidents), but it can be used for other types of matters as well.