If an attorney negotiates a contingency fee, what is the basis for the client’s payment?

When an attorney negotiates a contingency fee, the payment structure is based on a percentage of the client’s winnings or settlements. This arrangement allows clients, who may not have the financial means to pay hourly rates or fixed fees upfront, to access legal services by agreeing that the attorney will receive a predetermined percentage of the money awarded to the client through a successful outcome of the case.

This model aligns the attorney's interests with those of the client, as the attorney only gets paid if the client wins or achieves a settlement. This can create a strong incentive for the attorney to work diligently on the case, as their own compensation is directly tied to the results.

Other options, such as hourly rates or fixed fees for services rendered, represent different billing structures that do not apply in the context of contingency fees, which specifically rely on the outcome of the legal matter. The option concerning reimbursement for expenses also does not align with the concept of contingency fees, as it does not pertain to the lawyer’s compensation based on case results; instead, it typically refers to separate reimbursement for costs incurred during the representation.