What is it called when a lawyer provides service only to receive payment if it’s a win?

Question from Fuxxsakes, What is it called when a lawyer provides service only to receive payment if it’s a win?

Answer from AI:

In the United States, when a lawyer agrees to provide legal services and only receive payment if the case is won, this arrangement is known as a **contingency fee agreement**. This type of fee structure is common in certain types of cases, such as personal injury, medical malpractice, and other civil litigation matters.

How Contingency Fee Agreements Work

Under a contingency fee agreement, the lawyer’s fee is contingent upon the outcome of the case. If the client wins the case or reaches a settlement, the lawyer receives a percentage of the award or settlement amount. If the client does not win, the lawyer does not receive any payment for their services.

Key Features of Contingency Fee Agreements

• Percentage-Based Fee: The lawyer’s fee is typically a percentage of the total amount recovered. This percentage can vary but is often between 25% and 40%.
• No Upfront Costs: Clients do not have to pay any legal fees upfront, making legal services accessible to those who might not afford them otherwise.
• Risk Sharing: The lawyer shares the financial risk with the client, as they only get paid if the case is successful.

Legal Guidelines and Regulations

Contingency fee agreements are regulated by state laws and ethical rules set by state bar associations. These regulations ensure that the agreements are fair and transparent.

Typical Regulations Include:

1. Written Agreement: The agreement must be in writing and signed by both the lawyer and the client.
2. Clear Terms: The agreement must clearly state the percentage of the recovery that will be taken as a fee and any other expenses that might be deducted.
3. Reasonableness: The fee must be reasonable and not excessive. Courts can review and adjust contingency fees if they are deemed unreasonable.

For more detailed information, you can refer to the [American Bar Association’s guidelines on contingency fees](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_5_fees/).

When to Seek Legal Advice

While contingency fee agreements can be beneficial, it’s important to understand all the terms and implications before entering into one. If you have questions or concerns about a contingency fee agreement, it is advisable to consult with a legal professional. They can provide personalized advice based on your specific situation.

Steps to Take:

1. Review the written agreement carefully.
2. Ask the lawyer to explain any terms you do not understand.
3. Consider seeking a second opinion if you are unsure about the agreement.

For more information on finding legal help, you can visit the [Legal Services Corporation](https://www.lsc.gov/what-legal-aid/find-legal-aid) website.

Remember, while this information provides a general overview, it is not a substitute for professional legal advice tailored to your individual circumstances. Always consult with a qualified attorney for specific legal guidance.