What is a Contingency Fee?

In North Carolina, injury lawyers generally charge on a contingent fee basis. Contingent fee payment structures are also called no win/no fee structures.

Contingent fee payments allow accident victims to pursue claims for compensation for injuries without worrying about incurring very high legal costs. When a victim is hurt or someone is killed in an accident, the victim or his family members can hire a personal injury lawyer. The injury lawyer will charge legal fees only if the attorney can help the client to recover compensation for accident losses.  Otherwise, no legal fees are assessed.

Without contingent fee payment structures, accident victims might be unable to hire injury attorneys because of fear they would not prevail. A victim who unsuccessfully pursued a claim could be left with thousands in legal fees. A contingent fee payment structure ensures this does not occur.

When attorneys charge contingent fees, they typically receive their compensation in the form of a percentage of the amount of money they help their clients recover. The percentage may be lower if cases settle early outside of court, and higher if a case is litigated and/or goes to appellate court.

Contingent fee payment structures are not allowed in all types of attorney / client relationships. For example, the North Carolina Bar Association explains that a criminal attorney cannot charge on a contingent fee basis, except in very limited circumstances involving civil asset forfeiture cases. However, the ability to operate under a contingent fee structure is what makes most personal injury litigation possible.

If you or someone you love was hurt or killed, contact a Charlotte personal injury lawyer today to find out more about hiring an attorney to help you on a contingent fee basis.