Explaining Contingent Fees

No win no fee concept

Concept of No win no fee

How about paying a fee for a service only if you are satisfied with it? Sounds good, eh? That is exactly what no win no fee is all about. Also known as conditional fee or contingent fee, this is a fee that you have to pay only if the service that was provided to you resulted in a favorable outcome. These types of fees are usually charged in the case of legal matters, where the client has to pay the attorney’s fees only if the attorney procures a favorable outcome for the client.

Need for conditional fee

Not most people can afford to pursue a case in a court of law. The charges involved are sky-high with the attorney fee being the major contributor to it. With the help of this conditional fee, even those who normally cannot afford attorney fee will be able to pursue cases in a court of law. In this way, the government is able to ensure that no person is denied of their civil rights just because they are poor.

There are definite advantages to the client in such cases as the attorney will work diligently on the case because if he or she loses the case, then there would be no fee. This is an advantage, and also, the client can look forward to the attorney not settling for a lower amount in most cases.

Fee structure

No win no fee attorneys

            No win no fee lawyers

Now that you have become acquainted with the term no win no fee, the next question will obviously be about the fee structure. To make it clear, if the client was to receive a sum of money from the defendant as damages, not every bit of that money will go to the attorney as fees. There is a law that determines the fee of attorney but most lawyers will only charge a lesser fee than the local law allows them. Lawyers are allowed to charge 100% of the damages that are given to their clients. They are not allowed to charge more than that but they can charge the regular hourly charges. However, most lawyers on principle will only charge around 25% to 50% of the total damages.

These are some information regarding conditional fees that a lawyer can charge. The clients that usually take up these cases does so in an attempt to prove a point, raise awareness of an issue, or seek vengeance.