Understanding Contingency Fees
How "no fee unless we win" actually works.
What is a contingency fee?
A contingency fee means your attorney is paid a percentage of the recovery obtained for you. If there is no recovery, you owe no attorney fee. This arrangement lets injured people pursue claims they could not otherwise afford to bring.
Typical percentage
Contingency percentages vary by jurisdiction and case type, but a common range is 33% to 40% of the recovery. The exact percentage should be spelled out clearly in your retainer agreement before you sign.
What the fee covers
The contingency fee compensates the attorney for the time, risk, and out-of-pocket costs of taking your case. It typically covers:
- All case-related legal work (investigation, pleadings, negotiation, trial)
- Case expenses advanced by the firm (filing fees, expert witness costs, depositions, medical records)
- The risk of taking the case on without upfront payment
Case expenses explained
In addition to the contingency percentage, the firm usually advances case expenses (court filings, expert reports, transcripts). These are reimbursed from the gross recovery before the contingency percentage is calculated. If there is no recovery, in most arrangements the client owes nothing — the firm absorbs the expenses.
When contingency fees do not apply
Some matters are not handled on contingency. Examples include minor criminal matters, simple wills, uncontested divorces, and certain business disputes. Most personal injury, wrongful death, and insurance-dispute cases, however, are well-suited to a contingency arrangement.
Questions to ask before signing
- What is the contingency percentage, and does it change if the case goes to trial?
- Are case expenses deducted before or after the percentage is calculated?
- What happens if there is no recovery — do I owe any expenses?
- Can I terminate the attorney, and what happens to expenses already incurred?