Contingency Fee – Is it really risk free?
If we are handling a case for you, whether it is a workers' compensation claim or a personal injury claim, our law firm works on a contingency fee basis. This means that there are no up-front costs and we only get paid if you get paid. In other words, if there is no recovery for you (which is highly unlikely if we decide to represent you), you do not owe us anything.
Now, the contingency fee varies based on the type of case. In workers' compensation claims, the contingency fee is typically 20%. In a personal injury case, the fee is typically 33.33% or 40% depending on when the case resolves. At the outset of any case, you will be asked to sign a representation agreement. The contingency fee amount that will be charged at the time of recovery will be outlined in that agreement.
When does it Vest?
By its very definition, the contingency fee is contingent upon the receipt of money. Therefore, an attorney does not get paid until the client is paid. For example, if an insurance company makes an offer but the client decides to reject the offer, the attorney is not entitled to a certain percentage of the offer. The attorney is only entitled to a certain percentage of the recovery once it has been paid by the insurance company or the defendant.
...