Like it or not, most of the time, your lawyer will expect some compensation for his/her services.
However, how you structure your fee agreement with your lawyer can vary greatly.
While you may be familiar with the billable hour fee structure, the purpose of this article is to introduce you to the contingency fee.
Generally speaking, a contingent or contingency fee is a way of structuring payment to your lawyer where the fee is only payable in the event that there is a favorable outcome achieved.
In other words, it's a legal fee charged for an attorney's services only if the lawsuit is successful or is favorably settled.
In their most typical form, contingent fees are commonly calculated as a percentage of the client's total compensation after costs.
This fee structure provides several benefits.
On the one hand, it makes it easier for the poor and financially disadvantaged to access the civil justice system and to pursue their rights, since otherwise, in order to sue someone, one would first have to access to money to pay for legal representation.
Furthermore, it aligns the attorney's incentives with those of his/her client's.
The lawyer, "doesn't get paid unless they win.
" In the United States, the maximum percentage that a lawyer may permissibility accept under a contingent fee arrangement is generally set by law, rule, or regulation.
This percentage may vary from jurisdiction to jurisdiction.
Not surprisingly, most lawyers in a given area will enter into contingency agreements for the maximum permissible percentage.
Fee arrangement is definitely and issue you will want to discuss during your initial consultation with your prospective attorney.
While contingent fee arrangements may seem attractive from the client's perspective, you should inquire as to all the potential arrangements available to you so that you can make an informed choice.
It is also worth noting that contingency agreements aren't available in all legal matters.
In fact, there are some types of cases in which contingent fee agreements aren't permissible by law.
These matters generally include the areas of criminal defense and some family legal matters like divorce.
However, how you structure your fee agreement with your lawyer can vary greatly.
While you may be familiar with the billable hour fee structure, the purpose of this article is to introduce you to the contingency fee.
Generally speaking, a contingent or contingency fee is a way of structuring payment to your lawyer where the fee is only payable in the event that there is a favorable outcome achieved.
In other words, it's a legal fee charged for an attorney's services only if the lawsuit is successful or is favorably settled.
In their most typical form, contingent fees are commonly calculated as a percentage of the client's total compensation after costs.
This fee structure provides several benefits.
On the one hand, it makes it easier for the poor and financially disadvantaged to access the civil justice system and to pursue their rights, since otherwise, in order to sue someone, one would first have to access to money to pay for legal representation.
Furthermore, it aligns the attorney's incentives with those of his/her client's.
The lawyer, "doesn't get paid unless they win.
" In the United States, the maximum percentage that a lawyer may permissibility accept under a contingent fee arrangement is generally set by law, rule, or regulation.
This percentage may vary from jurisdiction to jurisdiction.
Not surprisingly, most lawyers in a given area will enter into contingency agreements for the maximum permissible percentage.
Fee arrangement is definitely and issue you will want to discuss during your initial consultation with your prospective attorney.
While contingent fee arrangements may seem attractive from the client's perspective, you should inquire as to all the potential arrangements available to you so that you can make an informed choice.
It is also worth noting that contingency agreements aren't available in all legal matters.
In fact, there are some types of cases in which contingent fee agreements aren't permissible by law.
These matters generally include the areas of criminal defense and some family legal matters like divorce.
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