How Contingency Fees Work
A contingency fee arrangement means your attorney only gets paid if they successfully recover compensation for you. If the case is unsuccessful, you owe nothing for legal representation.
The Basic Principle
No recovery = No fee. This structure makes legal representation accessible to mesothelioma patients regardless of their financial situation, while ensuring attorneys are motivated to maximize your compensation.
Here's how it typically works:
- You sign a fee agreement specifying the contingency percentage
- The attorney advances costs for investigation, experts, and court fees
- If you win, the attorney takes their percentage from the recovery
- If you lose, you typically owe nothing (though some expenses may apply—read your agreement)
Typical Fee Percentages
Mesothelioma attorney fees typically range from 25% to 40% of your recovery, depending on the complexity and stage of resolution:
Contingency Fee
Most common for mesothelioma cases. Attorney receives a percentage of recovery only if you win. No payment if case is unsuccessful.
Settlement Fee
Lower percentage often applies when case settles before trial, as it requires less attorney work.
Trial Fee
Higher percentage may apply if case goes to trial, reflecting increased attorney time and risk.
Trust Fund Fee
Some firms charge lower fees for trust fund claims since they require less litigation work.
Example Recovery Breakdown
If you receive a $1.5 million settlement with a 33% contingency fee:
Additional Expenses
Beyond the contingency fee, mesothelioma cases involve various expenses. How these are handled varies by firm:
| Expense Type | Description |
|---|---|
| Court filing fees | Varies by jurisdiction, typically $200-$500 per filing |
| Medical record retrieval | Costs to obtain hospital and treatment records |
| Expert witness fees | Medical experts, occupational specialists, economists |
| Deposition costs | Court reporter, videographer, transcript fees |
| Travel expenses | For depositions, hearings, or trials if necessary |
| Investigation costs | Research into exposure history and responsible parties |
How Expenses Are Handled
Ask your attorney about their expense policy. Common arrangements include:
- Deducted from recovery: Expenses come out of your settlement before calculating the fee
- Deducted after fee: Fee is calculated first, then expenses deducted from your share
- Absorbed by firm: Some firms absorb certain expenses, especially if the case is unsuccessful
Contingency vs. Hourly Billing
Here's why contingency arrangements benefit mesothelioma patients:
| Fee Type | Upfront Cost | Risk | When You Pay |
|---|---|---|---|
| Contingency | None | Shared with lawyer | Only if you win |
| Hourly | Retainer required | Client bears all | Ongoing, regardless of outcome |
| Flat Fee | Full payment | Client bears all | Before work begins |
Hourly billing can quickly exceed contingency costs in complex mesothelioma cases. An hourly attorney charging $400-$600/hour for hundreds of hours of work could cost more than a 33% contingency fee—and you'd owe that money even if you lose.
Can You Negotiate Fees?
Yes, contingency fees are negotiable. Here are factors that may affect negotiation:
May Reduce Fees
- Strong, clear-cut case with solid evidence
- Multiple potential defendants with deep resources
- Case likely to settle quickly
- Referring lawyer who shares the fee
May Increase Fees
- Complex case requiring extensive investigation
- Case likely to go to trial
- Shorter statute of limitations time pressure
- Defendants with limited resources
Tip: Don't choose an attorney based solely on the lowest fee. A skilled attorney with a higher fee may recover significantly more compensation, resulting in a larger net amount for you.
Frequently Asked Questions
What if I can't afford upfront costs?
Contingency attorneys advance all costs and recoup them from your settlement. You shouldn't need to pay anything upfront for a legitimate mesothelioma case.
Are consultation fees charged?
No. Mesothelioma attorneys offer free initial consultations. If any firm tries to charge for a consultation, consider it a red flag.
What if I'm unhappy with my lawyer and want to switch?
You can change attorneys, but there may be fee implications. The original attorney may claim a portion of fees for work completed. Discuss this with any new attorney you're considering.
Do I pay taxes on attorney fees?
Generally, you don't deduct attorney fees for physical injury settlements since the entire settlement is typically tax-free. Consult a tax professional for your specific situation.
What's the difference between "fee" and "cost"?
The "fee" is the attorney's payment for their services (the contingency percentage). "Costs" are out-of-pocket expenses like court fees, expert witnesses, and records retrieval. Both typically come from your settlement.
Should I get the fee agreement in writing?
Absolutely. Legitimate attorneys will provide a written retainer agreement specifying the fee percentage, how expenses are handled, and what happens in various scenarios. Never proceed without one.
This information is for educational purposes only and should not be considered legal advice. Every case is different. Consult with a qualified attorney to understand your specific legal options.