When dealing with a personal injury matter, most attorneys will take a case on a contingency basis. However, some clients may not understand what this means.
Contingency basis refers to the payment arrangement in a personal injury case or other situation where the client is likely to receive compensation.
Contingency explained
An attorney who takes a case on a contingency basis does not require upfront payment. Instead, the client agrees to pay the attorney’s fees directly out of any compensation he or she receives in the case. The attorney will only receive payment after a successful resolution. If he or she loses the case, then there is no payment due from the client. However, arrangements may vary, and it is essential for a client to understand the agreement terms.
Benefits for the client
A contingency basis payment agreement is particularly beneficial for individuals who may not have the financial means to cover legal expenses upfront. It allows for fairness within the system because it ensures that legal assistance is not just for those with substantial financial resources.
In addition, since the attorney will only receive payment if he or she is successful in winning the case, working on contingency provides a good incentive. It pushes the attorney to pursue a positive resolution and ensures attentiveness in the case.
Contingency basis is prevalent in various types of legal cases, ranging from personal injury claims to certain civil litigation matters. By allowing individuals to get legal support without the need for upfront payments, this type of arrangement fosters a more inclusive legal system.
