What is a Contingency Fee?

State Bar Allows Lawyers to Customize Fee Arrangements

Lawyers have the option of working out different fee arrangements with clients.  Depending on the type of case and clients involved, attorneys have the option of charging on an hourly basis, a flat fee, a contingency fee or a combination of these types of fees.  Most state bars that regulate attorneys, including the State Bar of Texas, allow for such differing and customized fee arrangements.

Contingency Fees

Lawyers may offer to take your case on a “contingency fee” basis.  This type of fee arrangement is prevalent in personal injury and in other cases in which the injured client is unable to pay the attorney for legal services.  In such cases, the attorney will not bill the client per hour and there are no upfront fees charged for the work.  The attorney is only paid when the case is resolved.  Attorney fees in contingency fee cases are a percentage of the total recovery to the client.

Average Contingency Fees and Expenses in Texas

In contingency fee cases, the attorney takes on the risk of litigation along with the client.  This means that the attorney may have to spend time and resources without receiving any payment over several months or even years in pursuing a case for a client.

Because the attorney is taking the risk with the client and because the firm may not be paid for a long time, contingency fees in personal injury cases in Texas generally range  30 to 40 percent of the total recovery.  Upon resolution of the case, clients may also have to reimburse the attorney for any out of pocket expenses incurred by the attorney in addition to the attorney fees.  Thus, the total attorney’s fees and expenses in contingency fee cases can often exceed 50 percent of the total recovery.

FT Law Firm is able to work out different fee arrangements with clients depending on the case.  Most personal injury cases, including car and truck accident cases, are handled on a contingency fee basis.  Pre-litigation contingency fees are generally 33% of the total recovery.  Post-litigation contingency fees are generally 40% of the total recovery.

Call FT Law Firm today for a free consultation on your case.