CONTINGENCY FEE

A method of payment of legal fees represented by a percentage of an award. Lawyers get paid in one of two ways: either you pay a straight hourly rate as you might pay a plumber (eg. $400 an hour) or the lawyer might "gamble" (i.e. "contingency" fee) and agree to only get paid if the claim is successful and by taking a portion (eg. one-third) of any award that comes after the filing of the claim. For example, if you go and see a lawyer because, after a medical emergency, your health insurance company refuses to pay your medical bills in violation of their policy, the law firm might say: "no money down. In fact, we don't get paid a cent unless you do. And then, we take one-third off the top of any award you might get." This allows the client to receive legal services without putting any money down and it allows the lawyer to advertise "we don't get paid unless you do." The lawyer associations in some counties prohibit contingency fee arrangements. In those countries that allow them, they are very prevalent in personal injury cases.