posted by madamejune on Jul 28
Lawyers are typically paid by the hour, but when clients like the ones who own small and medium-sized businesses who seek employer legal advice are unable to afford their fees—at the moment they start at over $300 per hour—they can arrange other forms of payment. These are known as alternative fee arrangements or AFAs. One of the most common types of AFA is the contingency fee, which basically means you pay the lawyer only if the results are in your favour.
This doesn’t mean that a contingency lawyer won’t charge you anything if you lose the case. The only thing you won’t have to pay for is the lawyer’s time. The rest, including court fees, investigative services, medical reports, and expert witnesses, still has to be paid regardless of the outcome.
When you and your lawyer agree on a contingency setup, you set a prearranged fee that’s usually a percentage of the amount you expect to win. Lawyers often agree to this because the percentage is often much bigger than what they would have earned working by the hour. Clients, on the other hand, don’t mind paying the premium if it means lawyers will be more motivated to win, since their fees are at stake—and they have little to lose otherwise. Hiring a contingency lawyer is a popular option in cases that involve heavy damages and compensation, such as insurance or personal injury claims.
Another advantage to getting a contingency lawyer is that you can usually afford more expensive services (i.e. a more experienced attorney) for the same amount of money. Or you can work with a more affordable lawyer, but have increased time for consultations as you don’t have to watch the clock all the time. It also protects you from negative tactics by the defense, who can simply make the case drag on until you can’t afford the hourly rates.
The downside, of course, is the added cost and the little details that can push it even higher. For instance, in most contingency arrangements, the client has to take associated costs out of his share of the settlement. Depending on the complexity of the case, this can gouge out as much as half of what you are awarded—something the lawyer doesn’t have to worry about because his fee remains the same.
A contingency arrangement can be a good idea if you think you have a good chance of winning; indeed, getting an attorney to accept such a setup is a sign that the case is strong. Of course, it won’t hurt to do your research and find a lawyer who has a good track record with similar cases, regardless of how he wants to be paid.

