How the Contingency Fee Arrangement Benefits Both Lawyers and Clients

How the Contingency Fee Arrangement Benefits Both Lawyers and Clients


The question of contingency fees arise frequently when someone is involved in an accident and the question frequently arises as to whether they are a ‘good’ thing for the client as well as the law firm representing the client.

The fact is, such arrangements can be of benefit to both law firm and client – a true ‘win win’ situation.

Contingency fees allow clients to hire a lawyer without having to pay any upfront fees. The lawyer only gets paid if the client wins the case, which can be a strong incentive for the lawyer to work hard to win the case. That is the old argument, but it is one that holds true today.

Additionally, contingency fees can increase access to justice by enabling people who could not otherwise afford counsel to assert their claims (source: Legal Information Institute). However, it is important for clients to understand the percentage of the recovery that the lawyer will take as their fee, as it can be a significant amount.

Clients should also be aware of any additional costs or expenses that may be deducted from the recovery.

The complexities and stress that usually arises following an accident can be alleviated by removing the substantial concerns over legal fees.

Naviating these issues is what experienced law firms like Holliday Karatinos Law Firm, PLLC, can do and a good law firm’s commitment will be to help accident victims get through the tough times successfully. Having a contingency fee arrangement is part of that process very often.

Among the numerous things that lawyers do to help victims is the contingency fee arrangement.

What is a Contingency Fee Arrangement?

Some lawyers or law firms require an upfront or hourly payment for the services they offer. Those who are financially sound will find this arrangement agreeable.

But not the ones from the poorer neighborhoods or with low socioeconomic status.

The expenses caused by the accident will put them in severe financial distress. For these individuals, the thought of hiring a lawyer sounds like just another expense.

This is where a contingency fee arrangement comes in handy.

According to this practice, the lawyer takes the case with zero payments, either upfront or hourly. They work on the case for free and take a cut from the client’s winnings. The client will only have to bear the minor administrative charges.

How the Contingency Fee Arrangement Benefits Clients

The clients are the biggest winners in a contingency fee arrangement as it provides for quality legal representation without the need for up-front fees.

Hiring a lawyer who agrees to work on this basis is advantageous in the following ways.

  1. Peace of Mind

The days after an accident are tough for the victim, especially if they have suffered from any serious injuries. They’ll have to focus on their recovery and think about managing their finances. They have to do all this while being in pain, be it physical or emotional. The stress of a compensation claim on top of all this is just too much.

A contingency fee arrangement gives peace of mind to the victim. They can relax knowing their compensation claim is being handled without money being spent out of their pocket.

  1. Easy Winnings

The contingency fee arrangement is usually the go-to option for low-risk cases. You can expect juicy compensation if liability is clear and there is enough evidence to back your claim. There’s also the fact that most lawyers offer contingency fee arrangements on cases that have high chances of winning.

  1. Minimal Financial Risks

Since there are no upfront costs involved, the chances of the client losing money are slim to none. Even if the client loses the cases, they wouldn’t have lost much as compared to hiring a lawyer without a contingency fee arrangement.

  1. Attorney Motivation

As said before, a lawyer gets paid only if they win your claim or case. This gives them the motivation to work hard on your case. Your success is their success.

How the Contingency Fee Arrangement Benefits Lawyers

Just like clients, lawyers have their share of benefits when choosing to work on a contingency fee arrangement. Two of the most important ones are mentioned below.

  1. One More Successful Case

A lawyer’s success rate is like their badge of honor. The success rate is the first thing that potential clients look for when hiring a lawyer. A successful case, regardless of the contingency fee arrangement, is another feather in the lawyer’s or law firm’s cap. They can flaunt it proudly.

  1. Assured Payouts

Cases where contingency fee arrangements are involved have assured winnings. If a lawyer takes up a case with one, they can expect a decent payment at the end of it.


A contingency fee arrangement is a practice that was planned with victims of accidents in mind. It gives them some respite from the difficulties they are being put through. With this arrangement, the victims get fair compensation for their losses, and the lawyer gets what’s due. A win-win situation for everyone involved.

Source: Holliday Karatinos Law Firm, PLLC

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