Contingency Fee
A payment arrangement where a lawyer receives a percentage of the money recovered in a case instead of charging an hourly fee. If the case is lost, the lawyer gets nothing.
A contingency fee is an arrangement where you do not pay your lawyer upfront or by the hour. Instead, the lawyer agrees to take a percentage of whatever money you win or receive in a settlement. If you lose the case and recover nothing, the lawyer receives no fee.
Contingency fees are most common in personal injury cases, auto accident claims, medical malpractice suits, and workers’ compensation cases. The typical contingency fee in Minnesota ranges from 25% to 40% of the recovery, depending on the type and complexity of the case.
Why it matters: Contingency fees allow people who cannot afford hourly attorney rates to still hire a lawyer. This levels the playing field when an individual faces a large insurance company or corporation. However, you should understand exactly what percentage the lawyer will take and whether you will be responsible for costs (like filing fees and expert witnesses) even if you lose.
Example: A person is injured in a car accident and hires a lawyer on a one-third contingency fee. The case settles for $90,000. The lawyer receives $30,000 as their fee, and the client receives $60,000 minus any case costs.
Personal injury cases, auto accidents, medical malpractice, workers' compensation