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  • Reuland Law, LLC

What Is A Contingency Fee Arrangement?

Updated: Apr 11, 2023

When it comes to hiring a personal injury attorney in Illinois, one of the most common fee structures is a contingency fee basis. This means that the attorney will only receive payment if they win a recovery for their client. That payment is tied to a percentage of what the client recovers.

A contingency fee arrangement occurs when payment to a law firm is tied to a percentage of how much that firm is able to secure for its client. Imagine a pizza-baking lawyer. A contingency fee lawyer who bakes you a pizza doesn't charge you $500 an hour for time in the kitchen regardless of what comes out of the oven. Instead, the contingency fee lawyer takes a slice of the pizza as payment. The more pizza the lawyer bakes, the more pizza there is for both the client and the lawyer at the end of the day.

Most personal injury attorneys charge a contingency fee between one third and forty percent of the total outcome. Some firms change the percentage based on the stage of the claim. For example, if the case goes to trial, the attorney's fee may be higher than if the case is settled out of court. Some firms believe that a variable rate contingency fee structure can account for the added risk and resources needed to advance a case through trial and even beyond with post-trial motions and appeals.

The Law Office of Tom Reuland frequently works on a contingency fee basis, meaning the firm's income is contingent on clients' successes.



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