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What Is a Contingency Fee?


Most people pay nothing out of pocket when they hire a personal injury lawyer. This is because most accident and injury lawyers in Tennessee will represent clients on the basis of a "contingency fee."

If you have never had to hire a personal injury lawyer, then you may not understand what it means to have a contingency fee agreement with a lawyer.

Under a contingency fee agreement, the injured person does not pay the lawyer anything unless the lawyer helps get a financial recovery for the injured person through a settlement or judgment. The lawyer agrees to represent the client in exchange for a portion of the settlement or judgment as payment for his or her work. In other words, the lawyer does not get paid unless the injured person gets paid.

Contingency fee agreements can be a good deal because clients do not have to pay their lawyer upfront or pay an hourly rate as the lawyer works on the case. Under a contingency fee agreement, it is in the best interest of both the lawyer and the client to get as much money as possible through settlement or judgment because both the lawyer and the client will recover more money as the amount of the settlement or judgment increases.

Some lawyers will also agree to pay the expenses associated with pursuing the claim for the client. These expenses are often referred to as "litigation expenses" and can include many things like court costs, expert fees, fees for medical records, fees for court reporters, etc. Although the lawyer may advance and pay these expenses for the client, the lawyer likely will require reimbursement for these expenses when the case is over (in addition to the contingency percentage for the lawyer's fee).

Contingency fee agreements can be an excellent option for people who have been injured in an accident as a result of someone else's negligence. However, contingency fee agreements do not make sense for everyone and they are not proper in all types of cases.

Before you hire a personal injury lawyer, you should make sure that you understand the lawyer's fee agreement and how litigation expenses will be handled. Different lawyers may structure contingency fee agreements in different ways. For example, the percentage of the contingency fee may differ depending on the type of case and whether it is necessary for the lawyer to file a lawsuit.

Contact us today if you have sustained a serious injury in an accident, or if a loved one suffered a wrongful death due to someone else's negligence. We offer free consultations to discuss how we can help protect your rights and see that you are fairly compensated. We offer contingency fee agreements to our personal injury clients. This means that you pay nothing unless and until your case is successfully concluded.

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