A Contingency Fee Must Be Read From the Signed Agreement
A contingency fee is attorney compensation tied to a recovery under the written agreement, often expressed as a percentage or tier rather than an hourly bill. The exact Albuquerque arrangement can define “recovery, ” use different stages, and allocate expenses differently, so no general web description supplies a firm’s terms. Ask the personal injury lawyer to identify the fee trigger, calculation base, and every client obligation in the proposed contract.
Locate the Trigger and Calculation Base
The agreement should state what event creates the fee: collection of settlement funds, judgment proceeds, structured payments, policy benefits, property recovery, or another defined result. It should identify whether the percentage applies to the gross recovery or another base, then explain any stage-based change triggered by a filed complaint, evidence exchange, trial preparation, trial, or appeal.
Ask how a structured or periodic recovery is treated and when compensation is earned or paid. An accident lawyer should point to the exact clause rather than relying on a headline percentage or oral explanation.
Keep the Attorney Fee Separate From Case Expense
Filing, service, records, transcripts, depositions, travel, investigators, consultants, demonstrations, and expert work may create expenses. Determine whether the firm advances those amounts, seeks approval, deducts them before or after the fee calculation, and expects repayment when there is no recovery. “Contingency” does not automatically answer any of those questions.
Medical balances, reimbursement claims, liens, taxes, funding obligations, and other third-party deductions are also distinct from attorney compensation. Ask who identifies and addresses each item and whether that work is included.
Review No-Recovery, Termination, and Co-Counsel Scenarios
The contract should explain what happens if the matter produces no recovery, the client changes counsel, the lawyer withdraws, the claim is abandoned, or the parties disagree about strategy. It should also address any lien or claim for prior work and expenses without assuming what a later allocation will be.
If referral or co-counsel is possible, ask how responsibilities and compensation are divided and whether the total client fee changes. Confirm the dispute procedure and which version controls if written and oral descriptions differ.
Demand a Closing Statement That Shows Every Line
Before signing, request a written scenario listing gross recovery, fee calculation, case expenses, outside deductions, and estimated client distribution, clearly marked as illustrative rather than promised. At resolution, compare that structure with the final accounting. A contingency fee becomes understandable only when the triggering event, percentage, expense treatment, outside obligations, and termination terms can all be traced to the agreement. At S&S Law, we help Albuquerque clients with contingency fees.