My attorney wants me to sign a contingency fee agreement, what is it?
Most personal injury lawyers use a contingent fee agreement (rather than an agreement calling for a flat fee for specified services, or for an hourly rate). The reasons are generally two-fold: The contingency fee provides the attorney a source of payment. The typical client–particularly one who has sustained severe injury–cannot afford to reimburse a lawyer for services rendered, unless he or she obtains a damages recovery from the adverse party (by judgment or settlement). In other words, the damages recovery provides a fund from which attorney’s fees can be paid; but if there were no recovery, claimant might be unable financially to pay the fees. Contingent fee contracts therefore assure representation to a party who otherwise might have to forego needed legal services. Here are some advantages to contingency fees: You do not get a bill every month. No matter how long the case drags on, no matter how much work your attorney is required to put into the case, you never have to go pay
