A contingency fee is a fee charged by a lawyer for his/her services that are paid to the lawyer by the client, only if the client’s case is successful or settled favorably out of court. Contingency fees are usually in the range of 25% to 40%, depending upon whether the case is settled without the need of a lawsuit, whether suit is filed, or whether there was an appeal involved in the lawsuit.
Often times there are costs incurred in the lawsuit process such as the costs associated with the filing of suit, serving the Complaint and Summons, deposition costs, expert fees, and medical records retrieval. These costs are separate from the contingency fee and are often times advanced by the lawyer for the client. Upon resolution of the client’s case, the attorney is paid for the costs advanced.
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