What Is a Contingency Fee and What Types of Cases Is It Used In?

When it comes to hiring a lawyer or law firm, one of the most important decisions a client must make is how much are my legal fees going to be, and how am I going to pay them. Traditionally, clients are billed by the hour or through fixed fees. This is especially true in cases such as commercial litigation, commercial transactions, and estate planning. But, there is another option that can be more accessible to those who unexpectedly find themselves in need of a lawyer due to a life-changing injury or loss of a family member, and have not planned for upfront legal costs: the contingent fee. 

What is a Contingency Fee?  

A contingent or contingency fee is a payment arrangement in which the lawyer’s fee is contingent - or based - upon the outcome of the case. This means that the lawyer is paid a percentage of the amount the client receives from the case (if the case is successful), rather than charging an hourly rate or a flat fee. If the client doesn’t win the case, the lawyer typically doesn’t get paid. 

Types of Cases That Traditionally Lend Themselves to Contingent Fees 

Contingent fee arrangements are most commonly seen in personal injury, wrongful death, and medical malpractice cases, where the plaintiff seeks compensation for harm they have suffered. Here are a few common types of cases where contingent fees are often used: 

1. Medical Malpractice and Wrongful Death: In these cases, individuals sue healthcare providers for errors that caused catastrophic injury or death. Medical malpractice claims are extremely complex and costly to pursue, which is why many individuals choose to work with lawyers on a contingent fee basis. 
2. Personal Injury and Wrongful Death: Personal injury cases, including car accidents, trucking accidents, and workplace injuries, also often involve contingent fee arrangements. The lawyer represents the injured party to recover compensation for medical bills, lost wages, pain and suffering, and other damages. The lawyer only recovers fees if the case succeeds. 

Advantages for Clients: Shifting the Risk to the Law Firm 

One of the key benefits of a contingent fee arrangement is that it allows clients to access legal representation without having to pay hefty upfront legal fees out of pocket before they know whether their case will succeed. Many people face financial constraints after an injury or tragedy and may not have the funds to pay for a lawyer’s hourly fees. No one budgets for a catastrophic injury or death. By opting for a contingent fee, clients are able to pursue their cases without worrying about paying attorney fees. 

The major advantage of this structure is that the contingency attorney assumes much of the financial risk. If the case is unsuccessful, the client does not have to pay for the lawyer’s time and efforts. This allows clients to pursue cases they might not have been able to afford otherwise. 

The risk shift is significant: lawyers only get paid if the case is won or settled. This incentivizes the lawyer to fight hard for the client’s best interests and to take on cases they truly believe have merit. It ensures that the legal team is invested in achieving a positive outcome. It also ensures that the client will not be out of pocket for legal fees unless their case succeeds.

Are Contingent Fees an Option in Other Cases, Such as Business Cases?

While contingent fees are common in personal injury and medical malpractice cases, many firms do not offer this payment structure for business-related cases. Commercial litigation, business disputes, and contract issues typically involve complex legal matters that may not have the same recognized path to a financial recovery for the client. This often makes it challenging to use a contingent fee arrangement. 

However, Plakas Mannos has been known to take a more flexible approach when the case so warrants. In certain circumstances, we are willing to consider contingent fee or hybrid fee arrangements for business cases if the facts and potential outcomes align. This offers our clients in commercial litigation cases an alternative that could make the legal process more accessible. 

When You Need Contingency Lawyers Near Stark or Summit County 

In summary, a contingent fee can be a valuable option for clients looking to pursue legal claims without the financial burden of upfront attorney fees. It shifts the risk to the law firm, ensuring that the client is only required to pay attorney fees if the case is successful. While contingent fees are most often used in personal injury, medical malpractice, and wrongful death cases, Plakas Mannos is one of the few firms that is open to considering this arrangement for commercial litigation when appropriate. 

If you have been injured or are facing a complex business dispute, we encourage you to contact Plakas Mannos. Our experienced attorneys are dedicated to achieving the best possible outcome for you.  

For more information about our services or to schedule a consultation with one of our contingency lawyers, contact our Akron or Canton office today.