What is Contingency and Why This Works in Your Favour?

A contingency agreement is a contract where your lawyer's payment depends entirely on the outcome of your car accident case. This means you only pay legal fees if your lawyer successfully wins your case or secures a settlement; if there is no recovery, you owe no legal fees. Rather than paying hourly or upfront, your lawyer receives an agreed-upon percentage of the settlement or award. This arrangement ensures quality legal representation is accessible regardless of your financial situation.

How does a contingency agreement work?

When you enter into a contingency agreement, you and your lawyer become partners in your case. Here's how it works:

• No Upfront Costs: You don't pay a retainer to start. The lawyer covers the initial expenses and invests their time and resources in preparing and pursuing your claim.
• Shared Risk: The lawyer assumes financial risk, only earning a fee if your case is successful.
• Case Outcome:
  If you win or settle: The lawyer's fee comes out of your compensation, based on your agreement.
  If you lose: You are not responsible for their legal fees (though some administrative or disbursement costs may still apply).

Why is this agreement in your favour?

A contingency agreement aligns your lawyer's interests with your own-they are motivated to maximize your compensation because their payment depends on it. It provides financial protection and removes barriers for those unable to afford hourly legal rates. Additionally, lawyers who take contingency cases generally have confidence in your claim's merit, giving you reassurance from the start.