What Are Contingency Fee Agreements?

Full Video Transcript

Contingency fee agreements are a common type of fee agreement between an attorney and a client. They are not based on the usual hourly rate of the attorney, but rather on whether the client recovers an award or settlement in the case. The attorney will keep a percentage of the recovery as payment for services. If the client doesn’t win the case and get an award or a settlement, then the attorney may not get paid either. Some attorneys provide for a different percentage if the case is settled early or if the case goes to trial. Generally, even under contingency fee agreements, the client is ultimately responsible for out-of-pocket expenses, such as filing fees, copying costs, and other administrative costs, whether they win the case or not. For more information on contingency fees, consult an attorney in your area.