LawyerCostDB

Contingency Fees vs Hourly Fees

Contingency fees and hourly rates serve different case types. Contingency works best for personal injury and employment cases; hourly is standard for defense, family law, and business matters.

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CriteriaContingency FeeHourly RateWinner
Upfront Cost$0$2,500-$25,000 retainerContingency
Total Cost (typical)33-40% of recovery$5,000-$50,000+Depends on case
Risk to ClientNone if you loseYou pay regardless of outcomeContingency
Client ControlLess (attorney drives strategy)More (you approve spending)Hourly
Case TypesPI, employment, class actionAll case typesHourly

Our Verdict

Choose contingency for personal injury and similar claims. Choose hourly when there's no monetary recovery to share or when you want maximum control over strategy and spending.

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Frequently Asked Questions

Can I negotiate contingency percentages?

Yes. Standard is 33% pre-trial and 40% if the case goes to trial, but attorneys may negotiate lower rates for strong cases.

Which is cheaper overall?

Contingency is cheaper for smaller recoveries. For large settlements, hourly billing may result in lower total attorney costs.