How Does A Contingency Fee Work?
There is a rumor floating around that all law firms are pricey and unaffordable. Many individuals are scared they cannot afford the counsel of a good law firm because the costs and fees involved will be too much. The truth is that there is a fee arrangement called a contingency fee that makes choosing a good attorney possible.
No More Lying: The Facts Concerning Contingency Fees
A contingency law office fee in the United States is a fee for legal services given where the arrangement is only paid if there is a favorable outcome. Contingency law firm fees are customarily figured out as a percentage of the client's net recovery. Many jurisdictions in the United States do not allow contingency law firm fees in family law and criminal situations. Typically, contingency lawyer fees are the norm in personal injury situations.
Here Are Several Of The Benefits Of A Contingency Lawyer Arrangement
A contingency attorney fee arrangement provides access to the justice system for individuals who cannot afford to fund hourly fees and expenses of civil litigation. Contingency law firm arrangements also facilitate an incentive to the law office to work hard on the client's legal issue. In other types of litigation where the lawyer bills by the hour, their is less incentive for the lawyer to achieve a good outcome. In addition, because lawyers are under some monetary risk of litigation, the volume of unmeritorious cases can be reduced.
Concerns About Contingency Law Firm Fees
A contingency arrangement does not guarantee a beneficial outcome. Law firms often times decide to take on legal issues that have a good chance of succeeding because they only receive payment upon final resolution. There are cases that are passed by because the viability of the claim is not apparent. Because investigation is required to see if a successful result can be found, there are cases that are not taken simply because of the prices associated with the investigation.
The Price of Litigation and Contingency Arrangements
It is also good to distinguish between contingency lawyer arrangements and the expenses of litigation. Even though contingency fees insulate the person from being responsible for paying expensive fees to the attorney in the event of a poor result, a lot of jurisdictions require that the person is still responsible for the costs of litigation. It is a good idea that the fee arrangement is talked about at the very beginning of an attorney-client relationship. Don't be scared to ask your lawyer both how their fees and the expenses of litigation will be paid.From the author: New Jersey injury lawyers