How Does a Contingency Fee Work?

Amanda from Scranton asks, “How does a contingency fee work?” Hi, I’m Mark Powell, a Scranton attorney – Legally Speaking. Contingency fees are fee agreements between an attorney and a client where the attorney only gets paid if the attorney successfully prosecutes the action. Typically, we see them in personal injury actions where an attorney charges a percentage of the outcome and advances all the costs of litigation, which in simple cases could be a few thousand dollars, but in complex cases can exceed $100,000. Because of the litigation costs, without the contingency fee system, individuals would never be able to successfully take on large corporations or insurance companies when they’ve been wronged by another party.

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