What is a Contingency Fee in Law
A contingency fee is a legal fee arrangement where an attorney is paid only if the client wins the case, typically taking a percentage of the settlement or judgment rather than charging by the hour.
A contingency fee is a legal fee arrangement in which an attorney is paid only if the case is won — either through a court verdict or a settlement. Instead of charging an hourly rate or flat fee upfront, the attorney takes a percentage of the recovery as their fee. If the case is lost, the attorney receives no fee.
This arrangement opens access to legal representation for clients who cannot afford to pay a lawyer by the hour — making it one of the most important concepts in civil justice.
How Contingency Fees Work
When a client signs a contingency fee agreement, they agree to pay the attorney a set percentage of any monetary recovery. That percentage is typically negotiated before the case begins and may vary based on:
- The complexity of the case
- The stage at which the case resolves (pre-suit, during litigation, after appeal)
- The type of case (personal injury, class action, etc.)
Typical contingency fee ranges:
- Personal injury (pre-lawsuit settlement): 25–33%
- Personal injury (during litigation): 33–40%
- Personal injury (after appeal): Up to 45%
- Class action cases: Can be lower (15–25%) due to the large total recovery
What Expenses Are Separate?
Even in contingency fee cases, clients may still owe certain case expenses — court filing fees, expert witness costs, deposition transcripts, and investigation fees. These are typically advanced by the attorney and then deducted from the recovery alongside the contingency fee. Always clarify how expenses are handled in your fee agreement.
When Are Contingency Fees Used?
Contingency fees are standard in:
- Personal injury cases — Car accidents, slip-and-falls, workplace injuries
- Medical malpractice — Where damages can be substantial
- Product liability — Defective product cases
- Negligence claims — Any case seeking money damages
They are not permitted in:
- Criminal cases — Attorneys cannot work on contingency for criminal defense
- Family law cases (in most states) — Divorce, child custody, and similar matters
Contingency Fees and Access to Justice
The contingency fee model is widely credited with democratizing access to the legal system. A working-class injury victim who cannot afford $300/hour for a personal injury attorney can still hire top legal representation by agreeing to pay from any recovery. Without contingency fees, many legitimate tort claims would go unlitigated simply due to the cost barrier.
Choosing the Right Attorney
When considering a contingency fee arrangement, compare:
- The percentage the attorney charges
- Whether expenses are deducted before or after the fee calculation
- The attorney's track record in similar cases
LegalZoom can connect you with attorneys who work on contingency and help you understand what fee structure makes sense for your situation.
Contingency Fees and Tort Law
Contingency fees are primarily used in tort cases — civil lawsuits where one party claims another's wrongful conduct caused them harm. The ability to retain counsel on contingency is often what makes tort litigation viable for injured plaintiffs who couldn't otherwise shoulder the cost of litigation.