Most attorneys offer their services at fix hourly price, and the rates can be high or low depending on the lawyer’s level of experience, the area of specialization, and reputation of winning cases. Rarely do advocates opt to offer their services on a contingency basis. But, there are unique instances when such an act may be necessary. For example, in cases where the attorney is sure of winning the client’s case seeking compensation for damages.
How Does The Contingency Basis Work?
An attorney who offers legal services on a contingency basis is one who accepts to represent a client even if the client does not have money to pay for the services before the case starts. A contingency basis representation is based on an agreement whereby the attorney gets paid a percentage of the client’s compensation or award if they win the case.
Therefore, the plaintiff will not have to pay the contingency fee up front. The lawyer often pays for the expenses of the case, which may include the filing fees, getting copies of police and medical reports, deposition fees, and other charges. The client and the attorney will append the contingency fee agreement that clearly states how the funds shall be dispersed after winning the case.
In retrospect, such representation is viewed to be a motivating factor for the attorney because the advocate will push to obtain the best settlement possible for the client. It is an approach that makes it possible for people to seek justice, more so those who could not afford to access the justice system.
However, some quarter within the justice system in some states have placed limits on the use of contingency fee agreements. The limits mitigate the chances of attorneys who offer their services on contingency basis charging excessive fees or pushing for exorbitant settlements for their clients just to get a fat cut of the compensation.