Importance Of Contingency Fees

601 Words2 Pages

In America, the right to a civil jury trial is one of our most fundamental rights. However, many individuals cannot afford an attorney, and without an attorney to help an individual navigate the legal system, this guarantee is effectively meaningless. Also, US courts have declined to impose on the losing party the obligation to pay the winning side’s legal expenses (the American Rule). Because of these two fundamental principles in the American legal system, contingency fees have always been allowed and continue to play a predominate role in the development of US tort law. Under a contingent fee agreement, the attorney will take the case without charging any money up front and is paid only if the case is successful, typically between 25%-33.3% of the plaintiff’s total recovery. In the US, unless the case is criminal or divorce, contingency fee agreements are generally allowed. Similarly, the ABA has long regarded the contingency fee system as “squarely within the bounds of American legal ethics.” However, in the 1980s, corporations, medical associations, and the insurance industry...

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