Monday, March 16, 2015
The Benefits of Contingent Fee Arrangements
What are contingent fee arrangements?
It is common practice for attorneys to accept cases on contingency, but sometimes their clients are unsure what this means. When a lawyer agrees to take a contingent fee, it means that he or she does not get paid unless his or her client collects money. When the client collects, the attorney receives a percentage of that money.
The percentage taken varies depending on a number of factors. The type of case and the total award can all affect the percentage earned by an attorney under a contingent fee agreement. Limits are sometimes set by law. Traditionally, the percentage is taken off the gross amount of the award or settlement, before any costs or fees are paid. There are some types of cases in which contingent fees are improper, such as criminal cases.
The benefit of a contingent fee arrangement is that the client does not need the financial resources to pay a large retainer or meet a monthly legal bill. Contingent fee arrangements also protect you from unscrupulous attorneys who charge by the hour and drag the case on longer than they have to or pad the time on their bills in order to make more money. With a contingent fee agreement, a client can usually be sure that the attorney is working hard on the case. This is because the attorney has a built in financial incentive to make sure the client gets as much out of the lawsuit as possible. The more money the client gets, the more the attorney gets.
The Law Firm of Flora Templeton Stuart helps clients with Social Security disability claims, auto wrecks, semi-truck accidents, and other personal injury cases. We do represent clients on a contingency basis. Please contact us today at (888) 782-9090 for a free consultation. We have offices in Bowling Green and Glasgow, and we serve clients throughout Kentucky and Tennessee.