A damages-based agreement is another name for a contingency fee arrangement. An attorney does not demand a deposit from a client in a contingency fee case. Instead, after settling or winning a case, the lawyer receives a share of the money that was recovered. Contingency fees might range from 5 percent to 50 percent of the ultimate award, depending on the state you’re in and the specifics of the contract. However, the attorney does not get paid if their client loses their case. Payment to the lawyer is conditioned upon, or “contingent,” the case’s success. 

Why Contingency is Helpful

Contingency fees benefit a client with limited resources but a pricey or complex case. Lawyers specializing in civil litigation often take cases with clear liability and a way to get a judgment or settlement, such as through an insurance policy held by the defendant. However, even on a contingency basis, the lawyer might not take the case if liability is unclear or if it is thought to be too dangerous.

Benefits of Contingency Fee

You should know the advantages and disadvantages of engaging a lawyer on a contingency fee basis. Clients might benefit from contingent fee agreements in several ways.

Recommended for low-incomes

Medical care costs frequently increase significantly when a personal injury case is involved. Additional immediate out-of-pocket expenses are needed to replace the assets lost due to the incident or car accident. Cases with contingency fees allow those with low incomes to pursue a claim. People frequently file personal injury claims during periods when they do not have enough extra money to cover legal costs.

Inducement

Your lawyer will be extremely driven to make all reasonable efforts to obtain the greatest settlement for you if they are not paid unless you are. 

The firm in charge of your expenses

It is another advantage of contingency fees, as litigation costs frequently prevent harmed parties from pursuing legitimate claims. The company that accepts your case will also pay the case’s expenditures if it is taken on a contingency fee basis. These payments are subtracted from the total amount recovered when the matter is resolved.

No Costs for Losses

If the attorney is ready to take the chance of not getting paid for their effort, you probably have a strong chance of winning your case. You can be confident that your lawyer believes you have a strong case when they take a case on a contingency fee basis.

Attorney’s Viewpoint on Contingency Fee

An essential benefit of a contingency fee arrangement from a lawyer’s perspective is that it gives them the freedom to take any steps necessary to progress the case. The client might decide not to cover all the summons or depositions they would like to issue once the costs are incurred. Remember that because the attorneys are paying the bill out of their own pockets, they have the last decision in what course of action they pursue.

You should consult a qualified civil attorney if you believe you have a case and wish to pursue litigation. You’ll feel more at ease throughout your case if you make sure you understand the contingency fee arrangement used by your lawyer.