What is a Contingent Fee Agreement?
” Many policyholders in dispute with their insurer cannot afford to pay a lawyer by the hour. Most lawyers who represent policyholders in disputes with insurers will work under contingent fee agreements. Under such agreements, the attorney is only paid if the client recovers money in a lawsuit or settlement. Then, the lawyer takes a percentage of the recovery. If a case settles before a case goes to trial, most attorneys set their contingency fee at 33% of the recovery. If a case goes to trial, the range increases to 33-40%. “Do I have to pay litigation costs on top of attorney fees?” Some attorneys will advance litigation costs, but the client is generally ultimately responsible for them. Whether you pay hourly or on a contingency, you may have to pay costs, even if you lose your case. You can set a cost reserve in advance with your attorney, and request that he or she try to stay within that amount. “What do litigation costs run for an average case?” That question cannot be answered
A Contingent Fee Agreement is a special kind of agreement between a lawyer and his/her client where the lawyer agrees to take the case, and handle it to completion, and is paid by a percentage of the amount recovered. The Oregon State Bar regulates how a Contingent Fee Agreement should be explained. You will receive a hard copy of this explanation at the time you sign a Contingent Fee Agreement. A Contingent Fee Agreement is not appropriate for all situations. Where there is no recovery, or very little recovery, the representation must be either hourly or on a flat rate basis. Thus, drafting documents, criminal representation, litigation defense (without any counter claims), and general legal advice are only available on an hourly or flat rate basis.
Many people need legal representation but cannot afford to pay a lawyer’s hourly rate. An alternative to paying for legal representation by the hour is the contingent fee. Most personal injury cases are handled on a “contingency fee” basis. The lawyer’s fee is based on (or “contingent” on) whether you actually get a recovery on your claim through trial or settlement. The lawyer’s fee is a percentage of the recovery. The contingent fee percentages we use vary depending upon the nature of the case and other factors. It is important to note that expenses for your claim are always the sole responsibility of the client, under a contingent fee as well as an hourly fee. If we offer you a contingent fee, we will prepare a written fee agreement for you and the firm to sign.
