How much does a lawyer cost?
It’s true that many experienced attorneys charge an hourly rate or flat fee for their consultation and work as film and TV shows often mention, especially when specific experience is needed for topics like copyright or patent law.
However, this mode of payment actually only applies to the minority of attorneys. In reality, the majority of lawyers operate off the contingency fee basis to be compensated for their work.
What is the contingency fee basis?
A lawyer who works off “contingency” means that they will only be paid via a percentage of the compensation that you receive from your case. This compensation may come in the form of monetary damages awarded to you after a trial, or a settlement offered to you from other parties.
Typically, lawyers who work on the below types of lawsuits accept a contingency fee basis for most of their cases, and may be seen as more reputable for doing so:
bankruptcy
personal injury
employment discrimination
malpractice
various kinds of class-action lawsuits
sexual harassment
debt collection disputes
How much do lawyers typically get paid on contingency?
On a contingency basis, an attorney may charge a percentage of their choosing, so this will vary between attorney to attorney. Many lawyers may also choose to charge a different percentage depending on the stages that a lawsuit reaches.
If a case can be settled before going to trial, an attorney may charge a lower percentage, as all parties have saved time and money required to invest into the lengthy process of preparing for trial. For quickly settled cases, attorneys may only charge 20%-25% of the agreed upon offer.
However, most lawyers will charge around 33% of a case’s compensation, whether it is resolved via settlement or via trial. For certain personal injury cases, some attorneys may require up to 40%, though this will be subject to varying state laws regarding how high of a percentage attorneys can charge their clients.
What kind of lawyers are not allowed to work on contingency?
Attorneys are not legally nor ethically permitted to work off contingency fee basis for family or criminal law cases. This is to prevent encouraging lawyers from promoting divorce or criminal activity.
Additionally, while not illegal to work on contingency for cases with obvious outcomes, lawyers would find it more wise to assign and bill at a reasonable hourly rate instead for issues where their client would clearly win.
Should I hire a lawyer on contingency?
If you need legal assistance, but cannot afford the cost of legal fees, you should contact a local lawyer regardless and ask them if they would be willing to bill on a contingency fee basis. This way, you can have access to an experienced attorney without worrying about an expensive hourly rate or flat fee.
