A form of payment for a lawyer, where the lawyer agrees to accept a fixed percentage of any recovery. If there is no recovery, the injured party is not required to pay their attorney for work done on the case.
A Contingency Fee is a pre-determined percentage of any recovery achieved. The division is often calculated after certain fees are deducted from the recovery.
To the injured party, the advantages of a Contingency Fee agreement is that he or she pays no out of pocket costs and assumes no risk. The disadvantages are that a personal injury law firm will tend to be selective regarding the cases they take, as all the risk is on them.