What Is Contingency Fee

Contingency fee is a fee for lawyer’s services thatagreement and it will be definitely presented as
is paid only if there is a successful or favorable resultevidence of your intentions about fees during the court
of the lawsuit. Usually contingency fees are taken as aprocedures. During some cases the contingency fee
percentage of the client's recovery sum, mostly fromwill cost you more than a possible monthly fee, so be
20% to 45%. In Canada contingency fees are legalsure to get some additional consultations before you
only in some provinces (Alberta, British Columbiachoose the type of fees. And the final disadvantage is
(except for family law cases involving child custody ordisbursements. These are the extra expenses
access), Ontario and Quebec among others). In otherrequired in prosecuting a lawsuit, like obtaining copies of
provinces, an attorney may collect a percentage ofdoctors' records and hospital charts, obtaining expert
recovery if the case was successful, but still needs towitness fees, court filing fees and transcript costs for
charge an hourly fee.example. The side that will cover the disbursements is
Contingency fee agreement is usually depending uponspecified in the initial agreement and very often though
various factors related to the case like the nature andno legal fees are paid, the client remains responsible to
complexity of the matter, risks involved in the case, thereimburse the lawyer for the disbursements incurred
cost in pursuing the matter, and the likelihood of aby the lawyer.
successful court verdict. This type of fee us veryThe agreement can be terminated from any of the
useful for situations when the client has little income orsides. In most of the provinces if the client terminates
no income at all, like in serious injury claims or wrongfulthe agreement the fees will be based on hourly rates
dismissal claims. It is a good solution for people whofor all work done before the termination, but the fees
are sure that they will win the case, but don’t havewill be payable only upon the successful conclusion of
enough money to fund the claim in court. Also casesthe case. If the lawyer terminates the agreement
related to accidents and insurance usually havewithout any cause, he or she receives no fee. So as
lawyers working on a contingency fee basis.you see contingency fee is a useful thing for certain
While the contingency fee main advantage is that youtypes of cases, but before you hire a lawyer on a
don’t have to pay large monthly bills from yourcontingency fee basis you should check the rules in
lawyer during all the court procedures, there are ayour province in this regard. And remember if a
number of disadvantages too. The first is the fact ofprofessional lawyer agrees to work on your case on
signing itself. The court will be informed about thisa contingency fee basis, it is the first sign of success.