Introduction
In many legal cases, especially personal injury and civil claims, lawyers work on a contingency fee basis. This means clients do not pay upfront legal fees and instead pay a percentage of any settlement or court award. This guide explains how contingency fees work, what percentage lawyers typically take, and what clients should know before agreeing to this billing model.
What Is a Contingency Fee?
A contingency fee is a payment structure where a lawyer’s fee depends on the outcome of the case. If the lawyer does not win or secure a settlement, the client generally does not pay attorney fees.
This model is commonly used in cases where clients may not be able to afford hourly or flat fees upfront.
What Percentage Do Lawyers Take on Contingency?
In the United States, contingency fees typically range from 25% to 40% of the total settlement or award.
Common percentage ranges include:
- 25%–33% for cases settled early
- 33% (one-third) for standard cases
- 35%–40% for cases that go to trial or appeal
The exact percentage is outlined in the contingency fee agreement
Practice Areas That Commonly Use Contingency Fees
Contingency fees are most common in:
- Personal injury cases
- Medical malpractice claims
- Employment discrimination cases
- Some civil litigation matters
Criminal defense and family law cases typically do not use contingency fees.
Are Case Expenses Included in Contingency Fees?
Contingency fees usually cover attorney compensation only. Clients may still be responsible for case-related expenses such as:
- Court filing fees
- Expert witness fees
- Medical record retrieval
- Investigation costs
These expenses may be deducted from the settlement before or after the lawyer’s percentage is applied, depending on the agreement.
Contingency Fees vs Other Billing Models
Unlike hourly or flat fees, contingency fees align the lawyer’s compensation with case success. However, they may result in higher overall costs if the settlement is large.
For a comparison of pricing structures, see our guide on flat fee vs hourly lawyer costs.
Are Contingency Fees Negotiable?
In some cases, yes. Clients may be able to negotiate the percentage, especially for high-value claims or cases likely to settle quickly. Always review the fee agreement carefully before signing.
For an overview of attorney pricing models and legal costs, visit our Lawyer Fees in the United States guide
Frequently Asked Questions
What is the standard contingency fee percentage?
The most common contingency fee is around 33%, though it can range from 25% to 40%.
Do I pay legal fees if I lose the case?
Usually no, but you may still owe case-related expenses depending on the agreement.
Can contingency fees be negotiated?
Sometimes. Clients can discuss the percentage before signing a fee agreement.
Are contingency fees legal in all states?
Most states allow contingency fees, but some impose limits or require specific disclosures.