When someone joins a mass tort lawsuit, they may not fully understand the process or the various terms being thrown about. One of the most common phrases thrown about in the mass tort space is "contingency." What does contingency mean? How does it impact consumers?
When an attorney or law firm agrees to work on contingency, they are talking about how they will act and be paid for the duration of the case. Working on contingency means that the firm or attorney will not ask for their client to pay them upfront, nor will they charge an hourly rate for their services. Instead, the firm will take a proportion of the winnings that the client earns as a verdict from the case.
An average contingency fee will usually rest around 1/3 of the winnings or 33%. This can sound like a lot of money, and it is, but it is important to consider the firm’s position. When they work on contingency, an attorney will pay for everything. “Everything” includes filing fees, court fees, transportation costs, depositions, expert witnesses, motion practice, and their own labor costs. In total these costs can total into the hundreds of thousands or even millions of dollars.
Under the contingency system, all of these costs that would normally appear to clients in the form of a high hourly rate or stupendous retainer fee are instead absorbed by the firm. Then after all of these costs have been incurred, the firm will only see a return if they win for their client.
Essentially, under the contingency system, attorneys put themselves deeply in the red up front in exchange for less than half of the end result assuming that they win. This is a very good deal for clients who have had to put no money down to hire these attorneys and will still walk away with 2/3 of a verdict that could stretch into the millions.
While contingency is a very generous system, not every attorney uses it. If you are searching for an attorney to represent your mass torts case on contingency, you should use Attorney at Law.
At AAL, our nationwide network of attorneys and law firms allows us to match you with the best mass torts attorneys in your area. Our partners have unparalleled levels of experience, legal knowledge, and resources that place them on even footing with the largest corporations in the nation.
Plus, all firms that partner with us take mass tort cases on contingency. That means if you don’t win, you don’t pay. Don’t wait. Contact AAL today for a free, no obligation consultation and start your journey to justice.