Contingency Fee Arrangement

A Contingency Fee Arrangement is a legal services fee arrangement that makes attorney payment contingent upon case success.

• AKA: Contingent Fee Agreement, No-Win-No-Fee Agreement, Success Fee Arrangement, Contingency Fee Agreement (CFA).
• Context:
  • It can typically involve percentage-based compensation ranging from 25 percent to 40 percent of recovery amounts.
  • It can typically enable access to justice for plaintiffs without upfront payment capacity.
  • It can often include case expense advancement by plaintiff firms.
  • It can often require written retainer agreements specifying fee calculation methods.
  • It can align attorney interests with client interests through shared risk models.
  • It can apply to personal injury cases, class action lawsuits, and employment disputes.
  • It can be regulated by state bar rules and professional conduct standards.
  • It can range from being a Simple Contingency Fee Arrangement to being a Sliding Scale Contingency Fee Arrangement, depending on its fee structure complexity.
  • It can range from being a Pure Contingency Fee Arrangement to being a Hybrid Contingency Fee Arrangement, depending on its payment components.
  • It can range from being a Standard Contingency Fee Arrangement to being a Enhanced Contingency Fee Arrangement, depending on its risk level.
  • It can range from being a Single-Case Contingency Fee Arrangement to being a Portfolio Contingency Fee Arrangement, depending on its case scope.
  • ...
• Examples:
  • Personal Injury Contingency Fee Arrangements, such as:
    • Auto Accident Contingency Fee Arrangement with 33 percent standard rate.
    • Medical Malpractice Contingency Fee Arrangement with 40 percent trial rate.
    • Slip-and-Fall Contingency Fee Arrangement with tiered percentage structure.
  • Class Action Contingency Fee Arrangements, such as:
    • Consumer Class Action Contingency Fee Arrangement with court-approved percentage.
    • Securities Class Action Contingency Fee Arrangement with sliding scale structure.
  • Mass Tort Contingency Fee Arrangements, such as:
    • Pharmaceutical Mass Tort Contingency Fee Arrangement with aggregate settlement provisions.
    • Environmental Mass Tort Contingency Fee Arrangement with common benefit fees.
  • Employment Law Contingency Fee Arrangements, such as:
    • Discrimination Case Contingency Fee Arrangement with statutory fee provision.
    • Wage and Hour Contingency Fee Arrangement with fee shifting statute.
  • ...
• Counter-Examples:
  • Hourly Fee Arrangement, which charges fixed hourly rates regardless of case outcome.
  • Flat Fee Arrangement, which requires predetermined fixed payment.
  • Retainer Fee Arrangement, which involves advance payment for ongoing services.
  • Reverse Contingency Fee Arrangement, which bases fees on amount saved rather than amount recovered.
  • Pro Bono Arrangement, which provides free legal services.
• See: Legal Services Fee Arrangement, Plaintiff Firm, Attorney Fee, Legal Retainer Agreement, Access to Justice, Legal Ethics Rule, Fee Shifting Statute, Legal Business Model, Attorney-Client Agreement, Legal Fee Structure, Risk Sharing Agreement, Securities Plaintiff Firm, Legal Client, Legal Professional Service.

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