In a contingency fee arrangement, the client does not pay any legal fees up front. Instead, the lawyer is paid only if they “win” the client’s case. The lawyer’s fee is generally a percentage of the settlement amount and the lawyer and client agree on the percentage before the representation begins. The lawyer’s fee is generally deducted and paid out of the settlement funds. The lawyer may charge the client separately, for any court or other costs incurred during the representation. Examples of legal matters where lawyers in Texas may charge a contingency fee: personal injury, contested probates (Will contests and other fiduciary litigation), and Social Security disability cases, to name a few.
PRO: The client does not have to pay any legal fees up front, and does not owe any legal fees if they “lose” the case either. Because lawyers who take certain cases on a contingency fee do not charge any fees up front, they will offer “free” consultations with prospective clients.
CON: If the lawyer is able to “win” or settle a client’s case quickly, the lawyer still gets the same percentage and pockets the profit, not the client. Lawyers skilled at their craft are very selective about
the type of contingency fee cases they will agree to represent. The “free” consultation often does not include legal advice and is just an opportunity for the lawyer to decide whether they will take your case or not.
