When It Does and Doesn’t Make Sense to Hire a Lawyer on Contingency

No one knows when they might need a lawyer, it can’t be predicted, but sooner or later we all need one. There are several scenarios under which they can be helpful, like a dispute between land or for criminal defense.

However, if they are not a court-appointed lawyer, you’ll have to pay them. However, there are different scenarios where you are liable to pay them. Contingency payment structures make sense in certain situations, but in some, it doesn’t. 

In this article, I’ll mention when it does and doesn’t make sense to hire a lawyer on contingency. Individuals need to pay attention so they don’t make mistakes in the future. 

What Does a Contingency Payment Setup Entail?

First, let’s define contingency payouts to make sure you know what we mean when we use this term. If you’re paying a litigation expert via contingency, that means you don’t have to deposit anything unless and until they can promise a particular outcome for you. Several benefits of contingency settlements are mentioned in the infographic below. 

If your lawyer says that they hope to achieve a certain result for you, but then they don’t do it successfully, that means you don’t have to pay them. However, the defense attorney agrees to such a payment plan under particular situations, it isn’t applicable in every circumstance. 

If any attorney under any circumstances agreed to such a payment plan, then that would put the representative at an automatic disadvantage. That’s why this reimbursement structure typically only appears in certain areas of the law.  

When Should You Pay a Lawyer Via Contingency?

If you’re hiring a lawyer for a personal injury lawsuit, that’s usually the only time that this structure makes sense. If there’s any personal injury, that means individuals are going to sue the person or company who has caused them harm. 

That could mean suing a doctor or hospital because the victim alleges that they didn’t meet the standard of care that should have reasonably been expected. Or someone is suing a drunk driver who hit their vehicle.

Maybe a person slipped and fell while in a store, and they are bringing a premises liability lawsuit against that establishment. In any of those situations, the representative may suggest that their client reimburse them on an agreed-upon percentage of the winning, only if the attorney was able to force a settlement offer or get a jury to rule in favor of the victim. 

If there’s a late-night promotion on local TV for one of these attorneys, it would be noticeable that they’ll explicitly mention that if they don’t win the case for the hirer, then they won’t ask for anything. 

When Does This Payment Structure Not Make Sense?

If you’re hiring a lawyer, but it’s not to sue a person or entity for reasons of personal injury, then having a contingency billing setup probably doesn’t make sense. Hence, a lawyer won’t settle for any such agreement.

For instance, if anyone is soliciting a lawyer to look over the will to make sure everything’s proper and legal, then they can get a single, agreed-upon fee. If someone hires a specialist for criminal defense, they will probably charge them by the hour.

You must do so, whether the counselor successfully gets the legal system to drop the charges or not.  Usually, personal injury represents the only niche where a practitioner will willingly put a contingency fee plan in place. 

They know that if they used such a charging setup for many other kinds of legal work, then their clients might never pay them, and legal experts want to make a livelihood, like everyone else. 

PRO TIPAlways clarify the exact percentage or fee structure before signing any contingency contract and ensure what constitutes a “win”!

Other Ways of Paying Lawyers

We just mentioned some other ways of paying a lawyer. If they don’t work on contingency, then reimburse them a one-time fee that they established. If individuals want a professional to do something for them, then this payment method would benefit both parties. 

Some lawyers charge by the hour. That may include experts who work in niches like criminal defense, business law, or attorneys who help with divorcing the spouse. You can also have a lawyer on retainer.

That means you deliver them a certain set amount within a designated period, like every month. They’re essentially on call for you. 

If people need them to do anything during that time, they prioritize the client. Often, corporations have advocated on retainer. Now that you know the different ways of paying lawyers, you will know which one to expect when you hire one. 

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