How Does a Contingency Fee Work?

What is a contingency fee?

A contingency fee is a fee for services that is only owed if there is a favorable outcome. Personal injury lawyers typically take cases on a contingency fee basis; in that situation, the client only owes fees if the client is awarded money in settlement or at trial. Personal injury contingency fees are typically a percentage (often one third) of the money awarded.

Contingency fees are most commonly seen in personal injury cases, but are also often offered for worker’s compensation and social security disability claims.

Not all legal matters can be handled on a contingency fee basis. For example, in Kentucky lawyers are not permitted to accept criminal or divorce cases where fees are based on the outcome of the case. Those cases are typically handled on an hourly fee basis or on a flat fee basis.

What is the benefit of a contingency fee arrangement?

Contingency fee agreements provide for legal fees to be paid only if and when the client receives money in settlement or judgement (trial verdict). The fees are paid from the money recovered when that money is received. Contingency fees are normally a fixed percentage of the money recovered, often one third.

Many people who are hurt and have legal claims cannot afford to hire a lawyer, especially in light of medical bills and wage loss they may be experiencing. A contingency fee gives people access to legal help without creating more financial strain. And, because the fee is contingent (dependent) on money being awarded, there is no risk of owing fees if your case is not successful.

At Crocker Law Firm we like that our clients feel free to call or come in during the course of their case without worrying that it will add to the fees. We want to keep our clients informed and for them to let us know how they are doing.

If you would like to discuss your car insurance coverage after an accident, contact Crocker Law Firm today.

Picture of Cyndi Crocker

Cyndi Crocker

Cyndi Crocker is the managing partner of Crocker Law Firm. She has been a personal injury attorney for more than 25 years. She is licensed and practices law in Kentucky and Tennessee.  Cyndi has lectured frequently on law firm organization and management.  She presents information to the public about issues in the law through Legally Speaking, a segment that can be viewed on WBKO.


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