Contingent fee usually applies in personal injury lawsuits when the victim has no financial means to shoulder the costs of litigation. Under a contingency arrangement, a lawyer gets paid only if the case is successful. Generally, lawyers only get 25 percent of the award money or damages if the case was resolved through settlement. If the case was won through formal litigation, the lawyer will get 30 percent of the damages.
Contingent fee arrangement cannot be applied on criminal cases and domestic relations as such cases have little chance of winning. Contingent fee basis also do not apply to divorce cases. Public policy still upholds solid marriage, and a divorce is seen as
a threat to stable society. Public policy also views settlement as a better way than litigation.
Contingent fee agreement between the plaintiff and the attorney may be applied in cases involving disputes in business, insurance, and employment.
Usually, an attorney will evaluate the value of your claim or lawsuit before entering into a contingent-fee agreement. Common cases where this arrangement may apply include the following:
1. Insurance bad faith - When you have done your obligation to pay for your insurance premium, but the insurance provider fails to compensate you for your injuries or pay your losses. This applies to vehicular accident, industrial accident, or any type of accident.
2. Violation of employment law - When the employer commits acts of discrimination, harassment, and salary/overtime violation.
3. Banking litigation - This applies to disputes among financial institutions. It involves issues on shareholder disagreements and lender liability. Paying your attorney in an hourly basis may strain your financial resources. If you have a personal liability case, it will be best to hire an attorney on a contingent fee basis. This will ensure that your case has a large percentage of winning and a speedier process.
If you lose your case, you are not obliged to pay your attorney for the services he rendered. However, you may be required to pay the compulsory court filing fees, expenses on getting expert witnesses, and other miscellaneous expenses arising from the gathering of evidences and processing of your lawsuit.
Contingent fee basis does not guarantee that you will not spend any amount of money, but it assures you that you will be spending less than the usual expenses in litigation.
Contingent fee agreement is considered as a contract. Both you and your lawyer must abide by the terms of your agreement.
Contingent fee lawsuit is the best option when faced with an accident that puts your family in an unprepared situation to face expensive hospital bills and loss income. Consult with a Personal Injury lawyer in Los Angeles today.