Money and liens
Contingency fee
A contingency fee is an attorney's fee paid as a percentage of the recovery rather than hourly, meaning no fee is owed if the case does not recover — commonly one third before suit is filed and more afterwards.
It is what makes legal representation possible for people who could not pay hourly rates, and it is required for a funding advance because it aligns the firm's interest with the outcome.
Case costs — filing fees, expert witnesses, records — are usually separate from the fee and are also deducted from the recovery.
Related terms
- Disbursement — Disbursement is the payment of settlement funds out of an attorney's trust account, following the order of attorney fees and costs, then liens, then the claimant's remaining share.
- Damages — Damages are the money awarded to compensate for harm, divided into economic damages such as medical bills and lost wages, non-economic damages such as pain and suffering, and in rare cases punitive damages intended to punish.
Need the money rather than the definition?
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