What is a Contingency Fee In Texas Law?

A contingency fee is when lawyer is paid a percentage of the money recovered, only if the client wins or settles the case. 

This means the client doesn’t pay the lawyer upfront, and the lawyer’s fee is directly tied to the outcome. If there is no recovery, the injured person is not required to pay their attorney for work done on the case.

That’s exactly how we work here at Funk and Associates personal injury firm.

Here’s a more detailed explanation:

Fees Can Still Apply

While no fee is owed to the lawyer if the personal injury case is lost, you may still be responsible for court filing fees and other costs related to gathering evidence, according to the American Bar Association. 

Percentage of Recovery

If you win or settle out of court the lawyer’s fee is a percentage of the amount recovered.

This arrangement guarantees fairness, as our compensation depends on the client’s success. If you have been hurt in an accident, this payment method gives you access legal representation without upfront costs.

Contingency fees are common in cases like personal injury, where clients may not have the financial resources to pay for an attorney upfront.  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.