How do contingency fees work and what percentage is reasonable?

Contingency fee arrangements mean you pay attorney fees only if you win your case, making legal representation accessible regardless of your financial situation. Standard contingency fees range from 33% to 40% of your settlement or verdict, with the percentage often increasing if the case goes to trial. The fee should be clearly outlined in a written agreement that specifies what costs are included versus billed separately. Many lawyers charge 33.3% for pre-litigation settlements and 40% if they file a lawsuit, reflecting the additional work involved. Some attorneys use sliding scales based on settlement amounts, charging lower percentages on higher recoveries. Understand what expenses are deducted from your settlement beyond attorney fees, such as filing fees, expert witness costs, and medical record retrieval charges. Ask whether costs are deducted before or after calculating the attorney’s percentage, as this significantly affects your net recovery. Ethical lawyers will explain how their fees compare to local standards and why their services justify the percentage charged. Some firms advance all case costs and only recover them from successful settlements, while others require clients to pay costs as incurred. Be wary of lawyers offering unusually low contingency fees, as this might indicate inexperience or intention to settle quickly for less money. The agreement should also address what happens if you discharge the lawyer or if they withdraw from representation.

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