What Is a Contingency Fee?

If you’ve been injured in an accident, you may be hesitant to call a lawyer because you’re worried about the cost. Legal fees can be intimidating. The good news is that many personal injury lawyers in South Carolina work on a contingency fee basis. However, many may not know what a contingency fee is.

This fee arrangement means that you don’t pay anything upfront, and your lawyer only gets paid if they recover money for you. It’s a system designed to ensure access to legal help, even if you can’t afford to pay out of pocket. Here’s how contingency fees work and what you need to know before signing a personal injury agreement.

What Is a Contingency Fee?

What Is a Contingency Fee?

A contingency fee is a payment structure in which the lawyer’s fee is contingent (dependent) on the outcome of your case. If you win through a settlement or court verdict, your attorney receives a percentage of the compensation. If you lose, you won’t owe the lawyer any attorney’s fees.

This model helps level the playing field by giving injured individuals a chance to pursue justice without taking on financial risk.

How Does a Contingency Fee Work?

When you hire a lawyer on a contingency fee basis, you’ll sign a written agreement that outlines:

  • The percentage the lawyer will receive from any settlement or verdict
  • Whether that percentage changes if the case goes to trial
  • How expenses and costs will be handled

Contingency fees in South Carolina typically range between 33% and 40% of the settlement or court award, depending on the complexity of the case and whether it settles out of court or goes to trial.

To give an example: 

  • Let’s say you settle your case for $90,000; the attorney’s fee is 33%.
  • Your lawyer would receive $29,700.
  • You would receive the remaining amount, minus expenses.

Before signing an agreement with your lawyer, you should ask them about the percentage they charge for their services.

What Expenses Might Still Be Your Responsibility?

Even though you don’t pay attorney’s fees unless you win, there may still be case-related expenses that must be paid out of your settlement. These costs often include:

  • Court filing fees
  • Medical record requests
  • Expert witness fees
  • Deposition or transcript costs
  • Travel or investigation expenses

Some lawyers cover these costs upfront and deduct them from your share of the settlement. Others may ask clients to reimburse certain expenses regardless of the outcome. It is important to review your agreement carefully and ask questions.

What Are the Advantages of a Contingency Fee?

Contingency fees offer several benefits for injury victims:

  • No upfront costs: You can hire a lawyer without paying anything out of pocket.
  • Motivated representation: Your lawyer has a direct incentive to maximize your recovery.
  • Reduced financial risk: You don’t owe fees if the case is unsuccessful.
  • Access to justice: You can pursue a case even if you can’t afford traditional legal fees.

This arrangement removes financial barriers and gives you peace of mind as your case moves forward.

Is a Contingency Fee Right for Every Case?

Contingency fees are commonly used in:

However, not all legal matters qualify. For example, family law, criminal defense, and business litigation matters usually do not operate on a contingency basis.

How Does South Carolina Law Handle Contingency Fees?

In South Carolina, contingency fee agreements must be in writing and are regulated to prevent abuse. Lawyers are required to:

  • Clearly explain the terms of the agreement
  • Provide a copy of the signed contract
  • Avoid excessive or unreasonable fees

Your lawyer should always put your best interests first and offer transparency about fees and expenses.

Why You Should Still Choose Your Lawyer Carefully

Even though a contingency fee lowers your financial risk, you should still choose a lawyer based on more than just pricing. Look for someone who offers:

  • A strong track record in personal injury law
  • Clear communication
  • Honesty about the strengths and weaknesses of your case
  • A willingness to take your case to trial, if necessary

Hiring a lawyer with these qualities will ensure your case is handled carefully.

Contact Ty Robinson Law Firm to Schedule a Free Consultation

Don’t let concerns about cost stop you from getting the legal help you need. At Ty Robinson Law Firm, we offer free consultations and work on a contingency fee basis for all qualifying personal injury cases. That means you don’t pay anything unless we win.

Let us handle the legal process so you can focus on healing. Contact our law firm at (843) 278-2222 to schedule your free consultation today.