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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| Criteria | Contingency Fee | Hourly Rate | Winner |
|---|---|---|---|
| Upfront Cost | $0 | $2,500-$25,000 retainer | Contingency |
| Total Cost (typical) | 33-40% of recovery | $5,000-$50,000+ | Depends on case |
| Risk to Client | None if you lose | You pay regardless of outcome | Contingency |
| Client Control | Less (attorney drives strategy) | More (you approve spending) | Hourly |
| Case Types | PI, employment, class action | All case types | Hourly |
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.