What is a contingency fee and how does it work?

A contingency fee is an arrangement between a personal injury lawyer and their client that allows the lawyer to provide services without charging an upfront fee. Rather, the lawyer will only receive payment if and when they win the case for their client. In Virginia, the fee structure is governed by Virginia Rules of Professional Conduct. The typical fee structure for a personal injury lawyer is a percentage of the total amount recovered from the opposing party. For example, if an injured party is awarded $20,000 as a result of a successful lawsuit, the contingency fee will be deducted from that amount, and the lawyer will only receive a portion. The percentage of a contingency fee is normally determined by the degree of difficulty that the case presents and the expected outcome. For example, a case that is expected to be easily won may have a lower percentage rate than a case that is more challenging. The contingency fee calculation can also be impacted by any risk that the lawyer takes on in defending the case. It is important to remember that the lawyer does not get paid unless the case is won. Thus, the lawyer is taking a risk that they will not get paid for all of the work they do in order to win the case. If the case is not won, then the lawyer will not receive any payment for their services. Therefore, the lawyer will make sure that they are taking on cases that they are confident they can win before they start working on them.

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What is a contingency fee and how does it work?

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