How Contingency Fees Work

What matters

A contingency fee usually ties the lawyer's fee to recovery, but the percentage is only one part of the agreement. Case costs, liens, termination, appeals, and distribution terms can materially affect the net amount.

Records to gather

  • The complete proposed engagement agreement
  • A written explanation of case-cost responsibility
  • Any lien, benefit, or repayment information already received

Questions to answer

  • Does the percentage change after filing or appeal?
  • Who advances costs and who owes them if there is no recovery?
  • How are liens, disputes, and final distribution documented?

Avoid this mistake

Comparing only the headline percentage can hide cost obligations, termination terms, and deductions from the client's share.

Keep the state question visible

Procedure, definitions, coverage, and deadlines can change by jurisdiction.

Choose a state

Primary sources to check

Begin with the current statute text, the relevant court's rules and filing information, and any agency material tied to the defendant or insurance issue.

Source links checked August 29, 2026. A source page is a starting point; the controlling text and current court rules still need to be read.