Helpful Information

What Is A Contingency Fee?

Posted by Harlene Labrum | Mar 23, 2021

Legal fees associated with litigation can be very high and may sometimes deter individuals from pursuing a legal remedy. In order to maximize the chances of getting a favorable result, the victim needs an experienced attorney throughout the entire legal process. There are several ways in which attorneys may bill their clients including hourly rates, predetermined fixed fees, or a contingency fee. A contingency fee is an amount that the attorney may charge only on obtaining a favorable settlement or a court award for the client. Learn how the experienced attorneys at Labrum Law Firm at (615) 338-9500 can help you with your case on a contingency fee model, at Labrum Law Firm you will never pay a dime, unless we win your case!

Determination of the Contingency Fee

A contingency fee is calculated as a percentage of the total compensation received by the claimant from a settlement or a court order. It is contingent upon the outcome of the case and the lawyer is paid for the legal services offered after the victim receives some kind of monetary compensation for the injuries, damages, or both. It is a fixed and predetermined percentage of the total money recovered and the client is informed in advance about the same. At Labrum Law Firm, we provide our clients with a clear written agreement regarding our contingency fee in accordance with the Tennessee State Law and we do not impose any hidden costs or expenses.

Benefits of Contingency Fee

The contingency fee model is a relatively modern concept when compared to the traditional hourly or a fixed fee. Through this model, the client simply pays for favorable results. The advantages of opting for a contingency fee model are:

Equal Access to Justice

Sometimes, the victims who are already burdened with injuries and damages, may not have the ability to pay the legal fees upfront. However, this should not mean that they do not avail the legal remedy to get the justice and compensation they deserve. At Labrum Law Firm, by using the contingency fee model, we make sure that everyone can obtain legal representation regardless of their financial capacity. This also ensures that the opposite party is unable to take undue advantage of the victim using their financial prowess.

Successful Remedy

Lawyers have their clients' best interests in mind and try their best to get you a favorable outcome from the claim. If they do not, they might not be able to get any legal fee at all with a contingency fee contract. This serves as a motivation for lawyers to give their best for the clients. However, it is important to note that the victim may still be liable to pay certain costs, such as court fees and out-of-pocket expenses.

No Hidden Costs

When paying a contingency fee, clients do not have to worry about hidden or unknown costs as all costs and expenses are discussed in advance. This ensures transparency and reduces the clients' worries so that they can focus on their treatment and recovery. It also builds trust between clients and lawyers.


Contingency fees also increase the efficiency of lawyers working on the case. They are not worried about the limitations of time or efforts, as might be the case with an hourly or fixed fee.

If you suffered injuries or damage in Tennessee, and want to pursue legal action against the at-fault party, contact our legal team today to learn how our experienced attorneys at Labrum Law Firm can help you with your case.

Contingency Fee Calculation in Tennessee

The Tennessee Rules of Professional Conduct state that the legal fees charged by lawyers should be reasonable. Factors that should be considered while charging legal fees include:

  • The time and labor required.
  • The claim amount.
  • The fees customarily charged in a particular locality.
  • The length of the lawyer's relationship with the client.
  • The experience and ability of the lawyer.

When charging a contingency fee, the lawyer takes care of the expenses which may need to be paid upfront and takes on the risk of not being paid for his or her legal services if the result is not in favor of the client. The contingency fees charged by a lawyer may include:

Contingency Percentage

The contingency percentage charged by a lawyer may differ from state to state. The percentage will also vary according to the merits of the case and the stage at which it is resolved. For example, a case that goes to trial may have higher legal fees. In Tennessee, there is a ceiling given to the contingency percentage a lawyer may charge, which is one-third (or 33.33%) of the total money recovered.

Court Expenses

Over and above the legal fees, a lawyer may also take care of costs that may be incurred while filing a lawsuit including summoning service costs, deposition costs, filing costs, and other court costs. The lawyer is entitled to recover them from his or her client.

Out-of-pocket Expenses

The lawyer may also assume other expenses on behalf of the client for the case. These may include printing costs, investigation expenses, or expert opinion costs. Preparing a case for trial may further increase the costs.

The written service agreement between the client and attorney should include and explain all these costs. It should also specify the costs which may be deducted from the recovery amount. The client must ask his or her lawyer for a copy of this agreement in order to avoid any confusion at a later stage.

Learn How Our Tennessee Attorneys Can Help With a Contingency Fee Model

Securing compensation through legal remedies for injuries suffered due to someone else's fault should be an option for everyone who has been wrongfully harmed. Through a contingency fee model, we make this possible at our law firm. Our clients can pay us only after we secure a favorable order for them. If you suffered injuries or damage in Tennessee, and want to pursue legal action against the at-fault party, contact our legal team today to learn how our experienced personal injury attorneys at Labrum Law Firm at (615) 338-9500 can help you with your case by working with you for any fees that may occur.

About the Author

Harlene Labrum

Harlene is focused and passionate about helping those injured in car wrecks.  She earned her J.D. at Nashville School of Law and her Bachelor's degree at State University of New York at Albany, awarded with the highest GPA and high honors.  Harlene began her career in law as a personal injury par...

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