Saturday, August 30, 2008

What is a Contingency Fee?

The definition of a contingency fee is provided.

As much as we wish attorneys will work for free, this is just not the case. As with any other professional service, attorneys will require compensation for their representation. While some may bemoan this fact, to do so is lacking in foresight. After all, if an attorney was not being properly compensated for his work then it would be doubtful that the quality of representation would be at the highest level. This is just a fact of life. But, some may wonder how this may help those who may not have the funds to afford a Philadelphia lawyer. Well, in many cases, there is a viable option and it comes in the form of a contingency payment plan.

For those not familiar with what a contingency payment is, this means that the attorney will not charge a fee until a lawsuit is settled. That is, the attorney will take a percentage of the judgment or settlement. (This percentage the attorney receives will vary based on the specific attorney, the case itself, etc.) So, if the Pennsylvania lawyer does not win the case then the client will not be required to pay a fee. This creates a tremendous opportunity for those who may not be able to procure the help of an attorney without such a payment option available.

Also, the ability to collect a percentage of the settlement or judgment provides a solid incentive for the Pennsylvania lawyer to best serve a client. This is another reason why contingency plans are very popular with clients. After all, the potential financial reward of getting the highest settlement benefits the attorney and the client equally. So, the attorney will not perform at anything less than his or her best because there is a huge incentive for successfully litigating the case.

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