Contingency Fee
A fee arrangement where the attorney collects a percentage of the recovery only if the case is won or settled — no win, no fee.
A contingency fee agreement means the client pays no attorney fees upfront; instead, the lawyer receives a percentage of the final settlement or judgment — typically 33% if settled before trial, 40% if the case goes to trial, and sometimes higher on appeal. This structure makes legal representation accessible for plaintiffs who cannot afford hourly rates.
Contingency fees are common in personal injury, medical malpractice, workers' compensation, and some employment discrimination cases. They are generally prohibited in criminal defense and family law matters in most states. The percentage must be reasonable and is typically disclosed in the written fee agreement.
Important distinction: contingency covers attorney fees, not case costs. Even in a contingency arrangement, the client may owe filing fees, expert witness fees, court reporter fees, and investigation costs — either as they occur or deducted from the recovery. Always read the fee agreement to understand whether costs come off the top (before the percentage is calculated) or after.
Real-World Example
In a $120,000 car accident settlement, the plaintiff's attorney took a 33% contingency fee ($39,600), plus $4,200 in deducted case costs, netting the client $76,200.