In consideration for legal services to be rendered by a law office, the client agrees to pay the law firm a percentage of all amounts recovered on behalf of the client. The law firm and the client agree that no attorney-client relationship will exist until the law firm has received from client an initial retainer fee.
Georgia Legal Services Agreement - Contingent
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FAQ
That is, generally in a contingency fee agreement, the lawyer only receives compensation if the lawyer has successfully represented the client. Further, the amount the lawyer receives is contingent upon the result the lawyer obtains and often on the phase of litigation in which the dispute settles.
The term ?contingency fee? refers to a type of fee arrangement in a case in which an attorney or firm agrees that the payment of legal fees will be contingent upon the successful outcome of the case.
There's typically no upfront fees or expenses. The contract outlines that a fee will be charged only if the lawsuit is successful or there is a favorable settlement. Usually, the fee is a percentage of the compensation you recover afterwards. A reasonable percentage is anywhere from 33 to 45 percent.
A contingency fee is one way that an attorney can charge for legal services. Contingency fees are not permitted in all types of cases. However, the Georgia Rules of Professional Conduct permit attorneys to charge clients for personal injury cases on a contingent fee basis.
In the United States, lawyers are unable to use contingency fees for criminal cases, divorce and family law cases, and domestic relations cases, with similar rules in Canada. With criminal cases, there is usually no financial recovery, so using a contingency agreement to cover payment would be useless.
That said, the most common lawyer contingency fee average ends up being 33%, or ? of the total earnings of a case, but can go up to 40% (in some jurisdictions) as the complexity and risk involved in taking the case increases.
In a contingent fee arrangement, the lawyer agrees to accept a fixed percentage (often one-third to 40 percent) of the recovery, which is the amount finally paid to the client. If you win the case, the lawyer's fee comes out of the money awarded to you.
