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Understanding Contingency Fees: A Client’s Guide to Personal Injury Representation

Dec 18, 2023

When you're facing the aftermath of a personal injury, understanding the legal process and how lawyers charge can be overwhelming. One common approach in personal injury cases is the contingency fee arrangement. This financial structure can be a relief for many, but it also raises several questions. Let's break down this payment arrangement and address common questions to provide clarity on what it means for your personal injury case.

Defining Contingency Fees

A contingency fee is a payment structure where the lawyer's legal fee depends on the outcome of your case. In this setup, the lawyer will only get paid if you win your case. The fee is typically a percentage of the court award or settlement amount, which means if there is no recovery, there are no attorney fees.

This arrangement allows individuals who may not have the resources to afford a lawyer upfront to still have access to legal representation. It aligns the lawyer's interest with yours—they are motivated to get the best possible outcome since their payment depends on it.

Calculating Contingency Fees

Understanding how fees are calculated is crucial in a contingency agreement. The standard percentage can vary, but contingency fees are based on an agreed-upon percentage of the recovery amount. The percentage may depend on the complexity of the case, the stage at which it is resolved (pre-litigation vs. after filing a lawsuit), and the laws in your state.

It's important to have a clear agreement with your lawyer about the percentage and how it will be applied. All expenses related to the case, like filing fees and investigation costs, should also be discussed upfront.

Considering the Advantages of Contingency Fee Arrangement

There are several advantages to choosing a lawyer who works on contingency, including:

  • No Upfront Costs: Since the fees are contingent upon winning, you don't have to pay out of pocket to start your case. This can be especially helpful if your injury has led to financial strain.
  • Risk Reduction: The lawyer assumes most of the risk. If the case is not successful, you won't be saddled with large legal bills on top of your other worries.
  • Lawyer Motivation: Your lawyer is incentivized to maximize your settlement or award since their payment is a percentage of it. This often leads to lawyers being more selective about the cases they take, only taking on those they believe they can win.

Always consider your individual case and if it is worth hiring a lawyer to work on a contingency fee basis. Your personal situation may dictate a different approach to how you pay your lawyer. 

Agreeing to a Contingency Fee

While the contingency fee model has its benefits, there are things you should consider before agreeing to a contingency fee. Understand what percentage of the recovery the lawyer will take and what costs will be covered. Be sure to ask about any potential additional costs or fees that could arise. 

Just because a lawyer is willing to work on contingency doesn't automatically make them the right choice. Consider their experience, track record, and how they communicate with you. You should feel confident that your lawyer is willing and capable of handling your case so that you get the best potential outcome from a personal injury lawsuit. 

If you have a personal injury case and are considering a contingency fee arrangement, reach out to the legal experts at Frank Penney Injury Lawyers for a consultation. We're here to help you understand your options and provide the representation you need to get the compensation you deserve. Let's work together to navigate your case and seek the best possible outcome.


No Fee Guarantee!

Our legal team understands that life can be very stressful after an accident of any type. The financial costs of your accident can add to that stress. When you are asking for help, this should make your life easier – not more difficult. That is why you do not have to worry about any upfront legal fees and expenses when you hire Frank Penney Injury Lawyers to handle your California personal injury case.


At Frank Penney Injury Lawyers, Frank Penney and his staff work on a contingency basis. This means you only have to pay a fee if you win your case. We will never charge a fee unless we obtain a settlement on your behalf. No win. No fee. Case closed.


This means there is no risk in asking Frank Penney Injury Lawyers for help. You get to benefit from Frank Penney’s years of experience, knowledge, and success without needing to stress about the cost. Call today to set up a free initial case assessment or to learn more.

When I first contacted the Law Offices of Frank D. Penney after my accident, I was frustrated with car insurance companies, and medical insurance companies; after all, I was in pain. He and his staff put me at ease instantly! It was such a relief to have someone working on MY BEHALF! They were able to settle my case for more than I initially thought it was worth. THANKS AGAIN!!!


- KRISTA H.


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