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Paying Lawyers through Contingency Fee

There is a common belief that hiring lawyers require a person to have enough money to pay their service. With this thought, many people are quite apprehensive to seek legal help thinking that they could not afford such.

However, there is a fee agreement that will allow individuals to have a legal service from a lawyer even if they do not have funds. In a contingency fee arrangement, people are not required to pay their lawyers unless the latter has successfully helped them receive a settlement. In layman’s term, this is also called “No win, no pay” arrangement.

This agreement provides two-way advantages: it allows clients to pursue a case even if they cannot afford to have a legal service while giving rewards to lawyers after they successfully help other people to recover claims.

According to Los Angeles lawyers, the amount of contingency fee will depend on the agreement between the attorney and the client, but usually, this is 25 percent if the case is settled, or 30 percent if it proceeds to court litigation.

While fees are negotiable, the standard service payment in lawsuits (which involve accidents) is one-third of the recovered money from the defendants. However, some lawyers demand for a higher percentage believing they have the right to ask for more because of their outstanding service. This is legally acceptable as long as the amount will not exceed the state’s service cap and that the clients will agree with this arrangement.

In contingency fee arrangement, the court will also decide if the amount of payment is reasonable to the clients and will only allow this if there is a contract explicitly stating the percentage a lawyer will receive if the case is settled or if the client is awarded with claims.

Meanwhile, contingency fee has its own restriction since this is only valid in civil cases and not in criminal lawsuits. This is commonly used in personal injury claims.

The reason why contingency fees are not allowed in criminal cases is because financial claims are not possible.

In filing for a divorce, this fee arrangement is also discouraged because the law favors the continuation of marriage which is given much importance because it can “domesticate” people, stabilize the family, and put off extreme individualism attitude.

The contingency fee is also discouraged in cases which involved public policy (such as marriage) since avoiding unnecessary litigation is considered by the society as more desirable.

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Rodney Mesriani on

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