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Hiring a lawyer

What is a contingency fee?

A contingency fee generally means the attorney fee is calculated from money recovered for the client rather than billed by the hour. The written agreement controls, so read the percentage, case-cost terms, and examples carefully.

By Shannon Davis, Attorney | Reviewed September 3, 2026

Key takeaway: Ask two separate questions: how is the attorney fee calculated, and who is responsible for case costs in each possible outcome?

When is the fee paid?

In a typical personal injury contingency arrangement, the attorney fee becomes due when money is recovered by settlement or judgment. The exact trigger and percentage must be stated in the written agreement.

Are case costs the same as attorney fees?

No. Filing fees, records, experts, depositions, travel, and other expenses may be separate. The agreement should explain whether costs are advanced, when they are repaid, and what happens if there is no recovery.

Does the percentage ever change?

Some agreements use different percentages depending on whether the matter resolves before filing suit, during litigation, or after trial or appeal. Do not assume; ask for a worked example.

What should I ask before signing?

  • What percentage applies at each stage?
  • Are costs deducted before or after the fee is calculated?
  • Who owes costs if there is no recovery?
  • How are medical bills and liens handled?
  • How can either side end the representation?

Does this apply to every legal matter?

No. Fee rules and allowed arrangements vary by matter and jurisdiction. Criminal defense, VA matters, and other work may use different structures and legal requirements. The firm should explain the arrangement specific to your case in writing.

Related questions

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Understand the agreement before you decide.

A free case evaluation is a chance to ask direct questions about fees and fit.

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