A contingent fee
The fee is generally based on the contractual agreementthe fee is generally based on the contractual agreement between the attorney and the party, but is also limited by local rules for "reasonableness". See e.g., the Nevada Rules of Prof'l Conduct In most jurisdictions, contingent fees are "reasonable" as high as 33% to 45% of recovery. Attorneys charging unreasonable fees may be subject to professional sanctions. The fee is calculated as a share of the eventual damage judgment or settlement won by the client. The percentage allowed is subject to the ethical rules of professional conduct, and in many circumstances, statutory limitations.
A contingency fee arrangement provides access to the courts for those who cannot afford to pay the attorneys fees and costs of civil litigationA contingency fee arrangement provides access to the courts for those who cannot afford to pay the attorneys fees and costs of civil litigation. Contingency fees also provide a powerful motivation to the attorney to work diligently on the client's case. In other types of litigation where clients pay the attorney by the hour for their time, it makes little economic difference to the attorney whether the client has a successful outcome to the litigation. Finally, because lawyers assume the financial risk of litigation, the number of speculative or unmeritorious cases may be reduced.it is rare for individuals to fund their own personal injury claim even if it is theoretically possible. As with all other legal fees, if the client's claim is successful, the client will be in a position to claim back the cost of expenses from the other side. If the claim is unsuccessful, the client will lose the money paid out.
Most jurisdictions require contingent fees to be "reasonable"Most jurisdictions require contingent fees to be "reasonable," resulting in a typical contingent fee of 33-45% of any eventual recovery. In rare cases, the contingent fee is equal to or more than 100% of the recovered damages. These rare cases, criticized by some as an inappropriate vehicle for vengeance, result from a greater desire on the part of the injured to punish the defending party than to personally recover damages so that they offer a very large contingency to their attorney in order to assure the highest chances of winning. However, these arrangement are exceedingly rare and even illegal in many jurisdictions.
In Nevada, iit is common vehicle for prosecution, by casinos, of petty thefts against them. In these cases, a fractional contingency fee would not represent sufficient motivation for their attorneys, with the casinos motivated more by the fear of losing these cases than in recovering the petty damages involved.
Contingency agreements allow you to protect your interests and help you to make good decisions with less riskContingency agreements allow you to protect your interests and help you to make good decisions with less risk. The contract offer flexibilities and can give individuals the confidence to make choices they might normally avoid. For example, a person may decide not to pursue justifiable litigation if, win or lose, he has to pay the lawyer who represents the case. In turn, a contingency fee agreement enables the attorney to make a living and removes any incentive to take on the financial support for frivolous cases that end up in losses.