How are lawyers paid for their services?

Lawyers can be paid for their services in a number of ways. Typically, lawyers are paid either a contingency fee basis or an hourly rate basis. A contingency fee arrangement is one by which the lawyer agrees in writing to take a percentage of the plaintiff's monetary recovery, if any, after either a settlement or a trial of a lawsuit. Contingency fees are typically 33% of the gross monetary recovery if it occurs before trial, and 40% of the gross monetary recovery if the matter is tried. Contingency fee agreements are extremely risky for lawyers because they do not recover any monetary compensation for the time they invested in the lawsuit if the client does not recover monetary compensation. However, contingency fees are a means by which individuals who cannot afford to pay hourly rates can retain a lawyer to represent them. Typically a contingency fee agreement is reserved for cases in which plaintiff has sustained serious personal injuries. An hourly fee agreement is one by which a ... more