What is a contingency fee?

A contingency fee is a payment structure commonly used in legal cases, particularly in personal injury and other civil cases, where the attorney's fee is contingent upon the outcome of the case. This means that the attorney receives a percentage of the recovery obtained for the client if the case is successful. If the case does not yield a monetary settlement or verdict, the attorney does not receive a fee. This arrangement aligns the attorney's interests with those of the client, as both parties benefit from a successful outcome.

This method contrasts with other fee structures, such as hourly rates or flat fees, which require upfront payment regardless of the case's success. By working on a contingency fee basis, attorneys may take on cases that clients might otherwise be unable to afford, making legal representation accessible to those who may not have the means to pay hourly fees.