Contingency Fee
The reduction, elimination, or suspension of a legal proceeding, charge, or financial obligation.
What is Contingency Fee?
A contingency fee is a payment arrangement where a lawyer is compensated only if the client wins the case or secures a settlement. The fee is typically a percentage of the recovery, aligning attorney incentives with case success.
Why It Matters?
It provides access to legal representation for clients who cannot pay upfront and motivates attorneys to achieve favorable outcomes.
Example
A personal injury attorney agrees to a 30% contingency fee, receiving payment only if the client wins a settlement from an accident claim.
Related Terms
Mediation
Litigation