The Contingency Fee Payment System
“No Fee Unless You Win!”
You see this in some lawyer television commercials and phone directory ads. In lawyer talk, this is known as a “contingency fee.” It is used most often in bodily injury and property damage cases — auto accidents, for example.
A contingency fee lawyer is paid only if he or she wins your case or gets a settlement from the person you are suing or his insurance company. The lawyer’s money comes from your overall “award” or settlement. The lawyer’s costs in the lawsuit also come from this total.
The calculator below lets you enter the amount your lawyer estimates you might get if you win. Then you can enter the percent of the contingency fee the lawyer wants to charge and the estimate of costs in the case, which you will also pay.
The contingency fee percent may be applied to the total award or to the money left after you pay the lawsuit costs (such as court fees and expert witnesses). The money left for you is to cover medical bills and property repair costs, lost wages, other “economic” losses, and an amount for your emotional harm. (Note: In some cases, part of your money from a lawsuit can be subject to income tax. Bring this up with the lawyer in advance.)