What is a Contingency Fee?
A contingency fee means you do not pay any upfront legal costs. When you hire us to pursue a legal claim or to complete a settlement claim on your behalf, ClaimsHero finances the entire legal action. We only get paid a percentage of your payout if we successfully secure a settlement or judgment for you.
Key Takeaways
- No upfront costs: We advance all filing fees, administrative expenses, and legal costs required to pursue your legal claim.
- No win, no fee: If the case is unsuccessful, you owe us nothing for the costs and expenses we advanced and we don't charge you any fee.
- Percentage-based: If your case is resolved through a settlement or favorable judgment, we earn a percentage of your monetary recovery. Our percentage fee is set through your retention agreement when you hire us, not at the end of litigation.
- Free settlement guidance: For many routine class action settlement claims, we don't charge a fee at all—we simply guide you to the official settlement administrator's website to file a settlement claim for free.
What Exactly Is a Contingency Fee?
A contingency fee aligns our incentives with yours. It means our payment is contingent—or dependent—on winning your case. If we do not secure a payout for you, we do not get paid either.
When you hire a lawyer by the hour, they get paid whether you win or lose. Under the contingency fee model, we take on the financial risk to pursue your legal claim. This shows we believe in the strength of your case and are willing to fight on your behalf.
Why We Use This Model
The costs to investigate, file, and litigate an active legal dispute against a massive corporation can reach millions of dollars. Most people cannot afford to pay those expenses out of pocket.
We believe the contingency fee model provides people with better access to the legal system. It levels the playing field, allowing ordinary consumers to enforce their rights and hold companies accountable, regardless of their bank account balance.
How Fees Are Calculated
If we secure a favorable settlement or judgment for you on your legal claim, the fee is calculated as a specific percentage of the total payout—the exact percentage is always outlined in your retainer agreement. We also pay ourselves back for the specific costs we advanced to file your case, such as filing fees paid to the court or arbitration tribunal. Then you receive the remaining funds, which we send directly to you from our client trust account.
No Double Charging for Co-Counsel
To ensure the strongest possible representation in complex mass litigation or mass arbitration, we frequently partner with other law firms. When we do this, we share our contingency fee between the firms. In other words, we split our fee with our partners; you don't owe any anything extra to them for their help.
Frequently Asked Questions
Do I have to pay if we lose? No. If the court dismisses the case or we fail to secure a settlement, we absorb the financial loss. You are not responsible for the legal costs we advanced to pursue your legal claim.
Am I responsible for paying hidden administrative fees? No. We deduct necessary case costs (like filing fees) from the money paid by defendants to resolve your legal claim, not from you. If your case is not successful, you do not pay those costs.
When do you take your fee? We deduct our fee and expenses after a defendant pays the money they owe under a settlement agreement or court order that resolves your legal claim. We deposit the money into a secure, audited client trust account, calculate the deductions, and transfer your payout directly to you.
Does my fee go up if the case takes years? No. The percentage remains fixed according to the retainer agreement you sign at the beginning of the case, regardless of how long the litigation takes.
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. Fees and costs are governed by the specific terms of the Retainer Agreement signed by the client. Past results do not guarantee future outcomes.
