Contingency fee agreements, also known as “no win, no fee” agreements, are commonly used in legal cases where the client cannot afford to pay legal fees upfront. Instead, the attorney agrees to take on the case and only receive payment if the client wins the case or reaches a settlement. These agreements are widely used in personal injury cases, as well as cases involving employment disputes and civil rights violations. However, there are some misconceptions surrounding contingency fee agreements. In this article, we will debunk one false statement often made about contingency fee agreements.
False Statement: Contingency Fee Agreements Are Only Used By Shady Attorneys Looking to Make a Quick Buck
This statement is false. It`s important to understand that contingency fee agreements are a legitimate way for people to access legal representation when they may not have the means to pay for it upfront. Many reputable attorneys use contingency fee agreements to help clients who would otherwise be unable to afford legal representation.
In fact, many high-profile cases have been won through contingency fee agreements. For example, in 1998, the tobacco industry was held accountable for the harm caused by their products to millions of Americans. This was achieved through a contingency fee agreement between a group of attorneys and the states that sued the industry. More recently, in 2020, a jury awarded $8 billion to a man who claimed that Johnson & Johnson failed to warn him of the potential risks of an antipsychotic drug. This case was also won through a contingency fee agreement.
It`s important to note that not all attorneys work on contingency fee agreements. Some attorneys may charge hourly rates or flat fees for their services. However, contingency fee agreements can be beneficial for clients who cannot afford to pay legal fees upfront.
In conclusion, the statement that contingency fee agreements are only used by shady attorneys looking to make a quick buck is false. These agreements are a legitimate way for people to access legal representation when they may not have the means to pay for it upfront. If you are considering entering into a contingency fee agreement with an attorney, it`s important to do your research and choose a reputable attorney who has experience in the area of law that your case involves.
