How does a contingent fee agreement work?

A contingency fee agreement is a payment arrangement that allows a plaintiff who has been injured and is seeking legal remedy to obtain legal representation even if they do not have money to pay a lawyer at the beginning of the case. A client does not have to pay a contingency fee up front, agreeing instead to pay an attorney a percentage of the client’s award should they win the case. The contingency fee agreement will dictate the circumstances of payment, and how much an attorney is owed. The rules governing lawyers in your state will frequently determine when contingency fees are appropriate.

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I hired a lawyer on a contingency-based contract who appears to have dropped the ball in my case. I’d like to hire a new lawyer, but can the previous lawyer hold me to the terms of the original contract if I win the case with the new lawyer?

Whether your current lawyer can hold you to the terms of the contingency agreement will depend on the laws of your state, as well as your particular situation. Many states follow the Model Rules of Professional Conduct. These rules state that the client can terminate the relationship with the attorney at any time, and the attorney must refund “any advance payment of fee or expense that has not been earned or incurred.”

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