How do “No Fees Unless We Win Lawyers” work?



Do they actually not charge you if you lose or is this a scam? I’ve always wondered how they made their money.

In: Other

They make their money by not taking on cases they aren’t confident are slam dunks, and by pushing to settle within the other party’s insurance policy limits instead of dealing with the uncertainty and expense of a lengthy trial.

Those arrangements are called “contingency fee agreements.” They are typically used in personal injury cases where the attorney may work a lot to get the client a settlement/judgment or very little, say with writing a demand letter or two. These arrangements can be attractive for clients, since the alternative might be paying a high hourly rate, billed on a monthly basis. If the attorney is unable to resolve the case with either a monetary settlement or a judgment in favor of the client, neither the client nor the attorney get a recover: “We don’t get paid unless you do.”

I’ve got one going on right now. What I’ve taking from this process so far is that it mostly applies to easy, slam dunk cases like another comment mentioned. It is a risk vs reward decision in the eyes of attorneys. We were completely in the right while the other party caused a lot of damage. Attorneys basically wanted us to sign this type of agreement when they heard our story.

Be aware that, while the lawyers may not charge you any fees, there can still be court fees that you need to pay whether you win or lose. Before signing up to a no-fees deal, check the fine print and ask about this issue.