Monday 12 December 2011

Understanding The Benefits of a Contingency Arrangement.

By Brad Stewart


Many lawyers in the United States offer contingency services to their clients. This means that the client will pay the lawyer's fees only if the case is decided in his or her favor. If the case is lost, the lawyer forgoes the fee. However, this is not applicable to other expenses incurred such as the cost of the investigative services, fees paid to expert witnesses, court fees, and other such miscellaneous expenditures. A contract is usually signed to this effect between the lawyer and the client.

Contingency Fees

The fee to be paid in the event of a winning or favorable verdict will be mentioned usually in terms of a percentage of the compensation or damages that are being sought. This figure can often be upwards of 20 % of the total amount of money that is awarded to the plaintiff. In many states, there are specific laws that control how much of a fee a lawyer can charge in such instances. Also, the percentage of fees to be paid to the lawyer can and will often vary depending upon whether it is settled out-of-court or else as the result of a trial. The contract will contain all the details of how the payment is structured and how it is to be paid. These fees types of are a reflection of the risk taken by the lawyer, in fighting a case without any immediate repayment of dues owed.

Which types of cases does a Lawyer Work on Contingency Basis?

A lawyer's decision to take up a case on contingency is usually based on the merits of an individual case. For instance, in personal injury cases, sexual harassment, malpractice, or any other cases which may involve a substantial monetary claim then these are usually taken up on contingency.

Lawsuits against employers or manufacturers of toxic materials such as asbestos or lead can also be dealt with in this manner. Defamation suits and product liability torts are also examples where lawyers often agree to work on contingency. In certain types of commercial cases also, a lawyer may agree to such a work agreement. Divorce matters or cases involving child custody are usually not handled on a contingency basis.

Understanding the Benefits of a Contingency Arrangement

A contingency payment will usually cost more than regular fees, but it comes with its own particular set of advantages. First, one will not be paying by the hour and so there is no need to worry about time spent on consultations. It is not necessary to keep an eye on the clock when speaking to the attorney. An attorney working a case on contingency is going to be more committed, since his or her remuneration hinges on winning the case. In case of a favorable verdict which involves payment of compensation according to pre-set stages, your attorney can be paid according to that same scheduled plan.

Choosing the contingency payment feature is also certainly a method that increases your odds of obtaining a quality lawyer to be at your side, but without having to worry about expensive fees.

When a lawyer takes up a case based on contingency it is an indication that they believe the odds of winning lean in your favor. This way, even those people who might not be able to afford a lawyer (certainly a high caliber one) can secure appropriate, and potentially more effective, legal representation.




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