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What is a Contingency Fee?

If you’re in a position where you need to acquire an attorney, you’re likely stressed. There’s also some added stress, especially when you start to think about the financial undertaking of hiring an attorney. Many lawyers charge a high retainer fee or hourly fee. However, some other lawyers may attempt to make their services more affordable and accessible by charging a contingency fee. Contingency fees may sound scary at first but can actually come in handy. It would help if you always weighed the pros and cons of hiring an attorney. Especially those working on a contingency fee before hiring them.

Contingency Fee Definition

It’s important to understand what a contingency fee is if you find yourself in the market for lawyers. A contingency fee essentially means that a client only has to pay their attorney if they are awarded damages. Or reach a settlement with the opposing party in their case. This type of fee structure is fairly common in personal injury cases. As those cases often involved the prospect of being paid out for costs associated with an injury. If you do not win your case, on the other hand, you do not have to pay the attorney you retained.

Benefits of Contingency Fees

One key benefit of contingency fees is that you do not have any out-of-pocket costs upfront for an attorney. You only need to pay if you end up winning some compensation from your case. Another benefit of hiring an attorney with a contingency fee is that it can be seen as an incentive for winning your case, which would trigger a fee to be paid out to them. Contingency fees can also make the attorney’s price more predictable to the client, as it is an agreed-upon percentage of the overall award from the case.

Drawbacks of Contingency Fees

The only major drawback of contingency fees is for the attorney who charges them. If an attorney takes on a case and they do not win their client anything, they are left with no payout for themselves.

Contact Herrman & Herrman P.L.L.C. at 361.882.4357

Our firm is equipped with over 100 years of combined experience handling personal injury cases across Texas. Our outstanding record of favorable settlements and verdicts includes over 20,000 successfully resolved cases. Once we take on a case, we are relentless, and you can rely on us to pursue full compensation for you.

  • You can trust our attorneys to be compassionate and professional.
  • We will fight hard to obtain a fair settlement for you.
  • Our firm represents the injured and families who have lost a loved one due to others’ negligent acts.
  • We serve as counsel in a range of injury cases – including car, truck, motorcycle, bicycle, pedestrian accidents, premises liability cases, product liability cases, and medical malpractice claims.
  • We have the ability to dispatch the Herrman & Herrman Accident Investigative Team to the crash scene to start an investigation and preserve critical evidence.