As a plaintiff in a class action lawsuit, it`s important to understand the terms of your contingency fee agreement with your attorney. This agreement determines how much you`ll pay your attorney if you win the case.
A contingency fee agreement is a type of payment arrangement where the attorney receives a percentage of the settlement or verdict, rather than a flat fee. In a class action lawsuit, the attorney`s fee is typically a percentage of the total award, divided among all the plaintiffs in the case.
The exact percentage varies depending on the attorney and the case, but it`s typically between 25 and 40 percent. This means that if you win a $10 million settlement, and the attorney`s fee is 33 percent, you`ll receive $6.7 million and the attorney will receive $3.3 million.
It`s important to note that if you lose the case, you won`t owe your attorney anything. This is one of the benefits of a contingency fee agreement – it allows plaintiffs without the financial resources to pay an attorney upfront to still have access to legal representation.
However, it`s important to understand the potential risks of a contingency fee agreement. If the case is unsuccessful, you won`t receive any compensation, but you may still be responsible for any expenses that your attorney incurred during the case, such as filing fees, expert witness fees, and other legal costs.
To avoid any surprises, it`s important to review the terms of your contingency fee agreement carefully before signing it. Make sure you understand the percentage of the attorney`s fee, as well as any expenses that you may be responsible for if the case is unsuccessful.
It`s also important to remember that the contingency fee agreement is negotiable, and you have the right to ask your attorney to adjust the percentage or the terms of the agreement to better suit your needs.
In summary, a contingency fee agreement is a common payment arrangement in class action lawsuits. Understanding the terms of this agreement is important for plaintiffs, as it determines how much they`ll pay their attorney if they win the case. By carefully reviewing and negotiating the terms of the agreement, plaintiffs can ensure that they`re getting the best possible representation without any surprises.