Law firms and attorneys can bill their clients in several different ways. For example, they may charge a flat rate fee for a specific issue or bill at an hourly rate for work they complete on a case.
Lawyers may also use a fee structure called a contingency fee arrangement. A contingency lawyer in California, or an attorney who works on a contingency fee basis, is an attorney who agrees to work on their client’s case in exchange for a percentage of the damages award that the client is awarded if they win the case.
Generally, the percentage will typically fall somewhere between five and fifty percent of the damages that the client recovers. A contingency fee arrangement may be very beneficial for a client who is in need of legal representation.
A client may want to inquire about this type of fee arrangement because they will not be required to pay the lawyer who works on a contingency fee basis until the case is over and only if the lawyer can win their case. This means that the client will not have to pay their attorney for their work unless they win their case.
It is important to note, however, that there may be exceptions, such as when the client and the attorney choose to enter into an agreement that specifies something different or when a client has to pay some court costs, such as filing fees. A client and their attorney will typically work out these details during the client’s initial consultation meeting with their lawyer.
Attorneys who use contingency fees are typically hired to represent plaintiffs in complex civil cases. Examples of the types of lawsuits that contingency fee attorneys commonly work on include:
- Bankruptcy cases;
- Personal injury lawsuits;
- Professional malpractice disputes or lawsuits filed against surgeons, doctors, lawyers, etc.;
- Various types of class action lawsuits.
If an individual needs to file a civil lawsuit in California, they should consult with a local attorney in California and inquire whether or not they work on a contingency fee basis.
How to Find a California Lawyer Who Will Work on Contingency Basis?
If an individual is looking for a civil lawyer who works on contingency, there are several methods they can use to help them find an attorney. For example, they can perform a quick online search for contingency lawyers in their area who practice in the legal field their issue involves.
An individual can also find a California contingency lawyer by submitting their issue to LegalMatch.com. LegalMatch can match an individual with a lawyer who practices in their area and in the proper legal field and ensure that the lawyers who contact them are willing to work on a contingency fee basis.
How Much Do Contingency Lawyers Charge?
The contingency fee structure will depend on the agreement between the attorney and their client. Attorneys cannot use a contingency fee arrangement if the case involves a criminal or family law issue.
An attorney is not permitted to collect a portion of the damages award if it is against the statutory laws in California or unreasonable. Some attorneys or firms may assign different percentages based on the different stages of the lawsuit.
For example, if the case is settled before it goes to trial, the attorney may take twenty or twenty-five percent of a client’s settlement award because they did not have to put in the additional work that is required for a trial. In contrast, if the case does go to trial and the lawyer prevails, they may take a higher percentage of the client’s damages award because they did have to put in the extra work on the case, such as working during the trial.
In addition, if the opposing party appeals the decision of the court, the attorney’s cut may increase because they will be required to perform additional work on the case, which may last until the court issues a final decision.
How Is the Percentage Determined?
The percentage an attorney charges will depend on numerous factors, including:
- The amount of work and time that the attorney will need to put in to officially resolve the legal issue;
- The number of issues and the complexity of the issues in the case;
- The skill, reputation, and experience of the lawyer being hired;
- The professional relationship that exists between the lawyer and the client, for example, a 20-year business relationship vs. a brand new client;
- The chances of the client winning the case; and
- The portion of costs that will not be covered by the contingency fee arrangement, such as:
- The cost of hiring an expert witness;
- Filing fees;
- Various other court-related expenses.
Additionally, when evaluating these factors, the attorney will be required to make an educated guess regarding how complex the issue may become and how long it may potentially take to resolve the case. For example, a lawyer may be required to predict whether they believe the case will settle before it goes to trial or if the legal issues involved will require a trial court to issue a final decision.
In general, an attorney will be more inclined to work on a contingency basis if they believe there is a good chance that their client will prevail and that the amount of damages that may be awarded will be substantial enough to compensate them for their time.
What Types of Lawyers Work on Contingency Fees?
Personal injury attorneys are the type of lawyers who are most commonly employed to work on a contingency fee. This is typically because their clients are individuals who have been injured and would not be able to afford the attorney’s legal services without the contingency fee arraignment.
Employment lawyers may also work on a contingency fee basis, specifically those that handle employment discrimination cases. Similar to a personal injury lawsuit, an employment discrimination case is usually brought by an individual who may be entitled to damages but cannot afford the cost of an attorney without a contingency fee arrangement.
Other types of cases where an attorney may agree to work for a contingency fee may include:
- Sexual harassment lawsuits
- Professional malpractice cases
- Debt collection disputes
When Are Contingency Fees Not Allowed?
As noted above, contingency fees are not ethically and legally permitted in cases involving family or criminal law issues because these could potentially encourage attorneys to promote divorce or criminal activity. It is not necessarily illegal to use a contingency fee arrangement in a case with an obvious outcome. However, it would be wise for an attorney to bill at an hourly rate if a case would clearly lead to a win.
Will I Get Monthly Bills from a Lawyer Paid on Contingency?
Whether or not a client will receive a monthly bill from their contingency lawyer will depend on the arrangement of the parties. For example, some lawyers may send their clients a monthly breakdown of their work so that a client can see what their lawyer has been doing on their case.
In some situations, a client may also request that their attorney send them a monthly bill so they can account for the time and resources the attorney is spending on their case. Clients may also receive monthly bills for different reasons.
For example, a contingency lawyer does not get paid until the case is completed and they win. At the same time, the client may still be responsible for the payment of certain costs that are incurred during the course of the case, such as court filing fees or the costs of hiring an expert witness.
Even though attorneys have an ethical duty to discuss the client’s billing arrangement, the child should ask questions about any billing issues they do not understand.
Should I Hire a Lawyer on a Contingency Fee Basis?
You might have a legal issue that requires assistance from an attorney but you cannot afford the cost of hiring a lawyer. In that case, it may be helpful to look for contingency lawyers in California. You can contact lawyers in your area and ask whether they charge on a contingency fee basis.
LegalMatch is an excellent resource for finding a contingency lawyer in your area who is ready to begin work on your case. Finding a lawyer who works on a contingency fee basis can help you get the legal assistance you need without having to pay an expensive hourly or flat rate.
