Contingency fee arrangements are a favored option in America with good reason. In this arrangement, a plaintiff doesn’t have to pay an attorney on a retainer or per-hour basis. Instead, an attorney gets paid only after a plaintiff gets compensated.
The exact amount can vary, but it is mostly a third of the amount recovered. Keep reading to understand more about the benefits of a contingency fee and how it helps plaintiffs pursue justice regardless of their financial status.
Access to Legal Representation
Initially, there was an unspoken rule that only those who are “comfortable” or “well-off” can afford to have attorneys. Well, this is now a thing of the past thanks to the contingency fee arrangement.
It goes without saying that one of the most important advantages is that it makes legal representation available to everyone. The lack of any upfront fees removes a major financial barrier for many people seeking justice.
Therefore, whether you are struggling financially because of medical bills caused by an accident or simply can’t afford a lawyer out of pocket, worry not. For many plaintiffs, this is the only realistic way to get legal help.
Reduced Risks for Plaintiffs
Pursuing a lawsuit can sometimes feel risky since the outcome can be very unpredictable. When using traditional billing methods like per-hour rates, plaintiffs could spend thousands of dollars on legal fees and still walk out of the case with nothing. Luckily, contingency fees shift that risk away from the plaintiff.
If your case is unsuccessful, you owe nothing in attorney fees. This arrangement gives many people peace of mind and allows victims to focus on recovery and their general well-being instead of worrying about legal expenses. Knowing your financial future doesn’t depend on a legal gamble can be very reassuring.
Helps to Motivate Attorneys
Since lawyers working on a contingency basis only get paid when they win or settle the case, they are very motivated to succeed. This often leads to doing a more thorough investigation, creating stronger arguments, and paying more attention to detail. The days of the plaintiff’s case files sitting in a corner unattended while losing money are over.
Additionally, lawyers are more selective with the cases they take, which means they are more likely to invest time and resources in cases that have strong merit. That level of dedication can make a very big difference in how your case is handled and the outcome.
However, this also comes as a disadvantage. Lawyers may assume your case, or it is easy for a case to be undervalued. That is why it is important to work with attorneys who care about people’s interests.
Aligns a Plaintiff’s and Attorney’s Interests
A contingency fee structure automatically aligns the interests of an attorney and the client. Both parties are working toward the same goal: to get a favorable outcome and possibly walk away with a paycheck. This mutual investment will build trust and encourage collaboration.
Unlike hourly rates, where legal costs can rise regardless of the results, a contingency fee ties the lawyer’s earnings to your success. This alignment creates a stronger working relationship and better communication and ensures your lawyer stays committed to your case.
When to Opt for a Contingency Fee Arrangement
As a plaintiff, you can consider a contingency fee arrangement when you have a strong case and the possible settlement amount is significant. If you have a serious claim, a contingency fee can motivate an attorney to push for a maximum payout as per the policy limit.
Also, if you are unsure about your legal options, working with an attorney on a contingency fee basis will give you a better understanding of the case.
Conclusion
Contingency fee arrangements have several benefits for plaintiffs. Most importantly, they make justice available to all victims regardless of their financial capabilities.
