How Contingency Fee Arrangements Work

Updated January 24, 2026

A fee arrangement where the attorney's payment is contingent upon winning the case. The attorney receives a percentage of the recovery, typically 33-40%, and no fee if the case is lost.

Personal Injury Workers' Compensation Employment Law

Understanding Contingency Fee

Contingency fees allow plaintiffs to pursue legal claims without upfront costs. The percentage may vary based on whether the case settles before trial, during trial, or on appeal. Clients are typically still responsible for case costs and expenses.

Examples

1Personal injury attorney taking 33% of a settlement
2Higher percentage for cases that go to trial
3No fee charged if the case is unsuccessful

Why This Matters in Legal Cases

Contingency fees align attorney and client interests—both want the maximum recovery. This arrangement makes legal representation accessible to people who couldn't afford hourly rates. However, clients must understand the difference between attorney fees (percentage of recovery) and case costs (expenses like filing fees, expert witnesses, medical records), which are usually handled separately.

Frequently Asked Questions

What's the difference between fees and costs?

Fees are the attorney's compensation (the percentage of recovery). Costs are out-of-pocket expenses: filing fees, medical records, expert witnesses, court reporters, etc. In most arrangements, the firm advances costs and is repaid from the settlement. However, fee agreements vary—some require the client to pay costs regardless of outcome.

Why do fees increase if the case goes to trial?

Trials require significantly more attorney time and resources than settlements. A case that settles early might involve 20-50 hours of work; a trial case can require hundreds of hours. The higher percentage compensates for this increased investment and risk.

Are contingency fees regulated?

Yes, some states cap contingency fees in certain case types (medical malpractice, workers' comp). Fees must also be "reasonable" under ethics rules. The fee agreement must be in writing. Some states use sliding scales where the percentage decreases as the recovery amount increases.

Sources

Last updated: January 24, 2026

Reviewed by: Quilia Legal Content Team

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For Personal Injury cases

The record behind a term like this one is built by the client, not the file.

Quilia asks clients about treatment, appointments and how they are doing, records the answers on the case, and syncs it to Clio, Filevine, MyCase, Neos and more.

See how it works →Book a demo →

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