What Are ContingentFees and Why are They Good for Consumers?

A contingent fee is a fee for services provided where thefee is only payable if there is a favorable result.  The law defines a contingent fee as "afee charged for a lawyer's services only if the lawsuit is successful or isfavorably settled out of court...contingent fees are usually calculated as apercentage of the client's net recovery."

For many injured consumers, the contingent fee is their keyto the courthouse.  It makes it easierfor people to protect and pursue their civil rights—especially in personalinjury and wrongful death cases.  If theright attorney is selected, a contingent fee is an excellent way to hire one ofthe best lawyers in your state without having to pay his or her up front retaineror hourly fee.  Truly a win-win for theconsumer.

Because of the high risk involved, few attorneys will takecases on a contingency basis unless they feel the case has good merit.  And when you think about it, that makesperfectly good sense.

The Contingent FeeStructure-  A client is not chargedattorney fees if he or she loses the case. If the client recovers damages fromsettlement or a favorable verdict, the attorney receives a previously agreed tofee from the recovery.  The attorney'spermitted fee varies depending on the country, and even local jurisdictions.The percentage allowed is subject to the ethical rules of professional conduct,and in many circumstances, statutory limitations.  Depending on the age of the client and typeof case, this range is normally someplace between 25% to 40% in the State ofCalifornia.

 The Advantages of a Contingent Fee Structure-  A contingency fee arrangement provides accessto the courts for those who cannot afford to pay the attorneys fees and costsof civil litigation. Contingency fees also provide a powerful motivation to theattorney to work diligently on the client's case. In other types of litigationwhere clients pay the attorney by the hour for their time, it makes littleeconomic difference to the attorney whether the client has a successful outcometo the litigation. Finally, because lawyers assume the financial risk oflitigation, the number of speculative or unmeritorious cases may be reduced.

In the United States, contingency fees are the standard inpersonal injury cases and are less common in other types of litigation.  Most jurisdictions in the United Statesprohibit working for a contingent fee in family law or criminal cases, as madeclear in Rule 1.5(d) of the Model Rules of Professional Conduct of the AmericanBar Association.

It’s interesting to note that in addition to the UnitedStates, contingent fees are also allowed in many other countries such asAustralia,Brazil, Canada, the Dominican Republic, France, Greece, Ireland,Japan, New Zealand, the United Kingdom and the United States.

Watch the video and more info at http://jacksonwilson.law.officelive.com/ContingentFees.aspx