TGM
18:41
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
contingent fee
Read a random definition: minus Latium
A quick definition of contingent fee:
A contingent fee is a way that lawyers get paid for their work. Instead of charging a fixed amount of money for their time, they get a percentage of the money their client wins in a lawsuit. This is common in cases where someone is hurt and wants to sue for money. The lawyer gets paid only if they win the case. The client may still have to pay some costs, like filing fees, even if they don't win. The lawyer has to write down the agreement with the client and tell them about any costs they might have to pay. Contingent fees are not allowed in some types of cases, like divorce or criminal cases. Some people like contingent fees because they can afford to sue when they wouldn't be able to pay a lawyer up front. Others don't like them because they think they encourage too many lawsuits or make lawyers settle cases too quickly.
A more thorough explanation:
A contingent fee is a way for lawyers to get paid for their services. Instead of charging a fixed hourly rate, a lawyer who works on contingency gets a percentage of their client's monetary award. This means that if the client doesn't win the case, the lawyer doesn't get paid.
Contingency fees are common in personal injury cases. For example, if someone is injured in a car accident and hires a lawyer on contingency, the lawyer might receive 33% of the amount the client is awarded in court.
However, there are rules that lawyers must follow when working on contingency. The agreement between the lawyer and client must be in writing and signed by the client. The agreement must also state how the fee will be determined and any expenses the client will be responsible for.
Some people think that contingency fees are good because they allow people who can't afford a lawyer to get one. They also give lawyers an extra incentive to win the case. However, others think that contingency fees encourage too many frivolous lawsuits and that the fees are often too high.
For example, if someone is injured in a slip and fall accident and hires a lawyer on contingency, the lawyer might receive a percentage of the amount the client is awarded in court. If the client doesn't win the case, the lawyer doesn't get paid.
Overall, a contingent fee is a way for lawyers to get paid for their services based on the outcome of a case. It can be a good option for clients who can't afford a lawyer, but it's important to understand the rules and potential drawbacks.